Their integrated approach to retailing (product development to selling) has allowed them to exploit synergies and
to take leading position in their respective categories on product differentiation. EBOs allow them to create a
physical connect with the customer and create brand stickiness. Therefore, these outlets are not only sales
mediums but also an effective brand building tool. This form of apparel retail today is signified by leaders across
all segments of Apparel retail who have built strong entry barriers in the form of product differentiation, brand
recall, retail presence and sourcing capabilities. While they will improvise to the changing business environment
that demands multi-channel outlook and digital enablement, these players as category leaders will continue to
signify Apparel retailing in India involving own retailing approach through EBOs as the mainstay of their sales
volume.

Large Format Stores or LFS are signified by 3000 to 7000 sq ft. stores that offer their products across multiple
apparel and lifestyle categories. Their offer mix comprises in-house brands called private labels and other brands.
Reliance Trends, Lifestyle Max, Pantaloons, are leading LFS lead players in the country with their brick store
presence across Metros, Tier I and Tier II cities. Their range comprises of both Private Labels and other brands,
while retailers like Fashion by Big Bazaar, Max & Westside house only Private labels. Value Retailers like V-
mart and Vishal Mega Mart signify these stores in tier II, tier III and beyond towns. While all have started their
online activation specially Post COVID-19, their in-store stores sales will continue to be mainstay of their business
strategy. Their positioning in mid-price (for players like Reliance Trends, Lifestyle Max) and value price (V-mart,
Vishal) is primarily delivered through a product mix that comprise core and fashion offerings. These players are
fashion followers source fashion led apparel and lifestyle products on prevalent trends in the market.

Online destinations that comprise Marketplaces (Amazon, Snapdeal), fashion focussed destinations (Myntra,
Tata Cliq) and vertical specialists (Zivame and online stores of brick retailers like Marks & Spencer’s) encompass
apparel offerings across all its sub-segments and propositions (ethnic, western; formals, casuals, comfort; men,
women, kids; mass, mid-price and premium). Market places like Amazon are primarily focussed on range and
value and that defines their core proposition. Myntra (the largest in the online fashion space) offers multiple
propositions. It is a preferred destination for online listing of brands (Retail led or distribution led) and it also
offers its own private labels on the lines of LFS stores. Vertical specialists take a category stance and Zivame in
the inner wear is an appropriate representation for the same. While the online focussed players in apparel fashion
have witnessed disruptive growth since 2021, their growth has also enabled the overall formalisation of the
Apparel Fashion Retail. Contrary to the belief of direct competition between brick and online in apparel fashion,
brick fashion retail in the organised space primarily driven by the expansion of both EBO led and LFS led stores
has also grown in the same period. Post-COVID-19 also, this complimentary growth trajectory is expected to
continue. Though the pace of digital transformation will increase with both brick and online to be viewed as
complimentary channels for growth.

Channel wise segmentation of Women’s Ethnic Wear Market

23% of the retailing of Women Ethnic fashion is done through organized retail channels and that comprises
Exclusive Brand Outlets (EBOs), Large format stores (LFS), Multi brand Outlets (MBOs) and E-commerce. 77%
of women’s ethnic wear sells through the unorganized channel. The share of unorganized channel is high,
especially in women wear. However, the share is expected to reduce to 62% by Fiscal 2025 enabled by many
sellers and manufacturers seeking online route to selling via. marketplaces and own digital activations.

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