Size of Indian Retail Market Across Segments

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Size of Indian retail market across segments, 2007

Segment Total Retail Organized Retail

Food and grocery 6,422 50

Textile and apparel 980 185

Jewelers and watches 554 30

Consumer durables 415 43

Parma 364 10

Home solutions 351 32

Books, music and gifts 115 15

Others 1,159 111

Total 10,360 475

Source: Crisil Research



Apparel is one of the fastest growing verticals, with higher number of domestic and

foreign brands, and increasing consumer willingness to pay for quality.

Footwear has the highest organized retail penetration, primarily due to players like Bata

India Pvt. ltd. and liberty, with wide distribution network and customer confidence.

Source: Indian Retail industry Its Prospects and Challenges By International institute of foreign

trade and research.

Key players

Source: IBEF Reports






7.4 Players across verticals




7.5 International retailers

International retailers are fast expanding their business in India to tap the large consumer

base. Reebok has set up its largest store in the world in Hyderabad, Tommy Hilfiger and Levis

have over 20,000 square feet of retail space and stand-alone stores across major metros. The fast-

food giants like Pizza hut, McDonalds, Subway etc. are expanding at a fast pace, with the

emergence tier ii and tier iii cities and expanding markets in these cities.




Source: Images Yearbook 2008







Source: Indian garment Industry Report



Print 13% growth in advertising volumes of fashion industry on printduring 2007, over 2006. Fashion industry used newspapers and magazines in anadvertisingratio of 81:19 during 2007. Maximum advertising of fashion brands on general-interestnewspapers and women- interest magazines. Koutons ready-mades maintained its first rank in the top 10brand listin print across both 2006 & 2007. The average ad per day by fashion industry has seen a rise of 27% inprint during 2007.



Radio Fashion industry advertising saw a growth of 173% on radioduring

2007, as compared to 2006. Radio advertising by fashion industry skewed towards Delhi &Mumbai. Pantaloons was the top name in the top 10 brand list on radioduring2007. Two-time rise in average ads aired per day by fashion brandson radioduring 2007, over 2006.

Source: Indian Garment Industry Report

REFERENCES _ www.ncaer.com _ www.fibre2fashion.com _ www.indiaexports.com _ Images Year Book 2008

_ India Retail Report 2009 _ Apparel Talk Magazine July 2008 Issue _ Apparel Export Promotion Council _ Marketing White Book 2007 _ Marketing Management by Philip Kotler



Source: Indian retail apparel research By NorthBridge Capital January 2011











Menswear

Menswear is still the single largest product category, both in terms of value and volume. Thissegment is also the most developed and better organised when compared to other categories like

womenswear and kidswear. In 2009, the menswear segment had volume growth rate of 7.8

percent and value growth rate of 11.7 percent. The volume grew from 1757 mn units in 2008 to1894 mn units 2009. In terms of value the menswear market has grown from INR 498.1 bn to556.4 bn in 2009 at a rate of 36.1 percent. Among all the apparel categories T-shirts was the

fastest growing at a rate of 34.1 percent and Trousers at 18.3 percent.

Men’s Shirts

Valued at INR 204.7 bn, men’s shirts as a single product category commands the largest market

share in the apparel market and also has the maximum number of manufacturers and brands

competing in this market. While some established players offer brand variants to create a distinct



identity in the category, there are others who have positioned themselves in specialised sub-

categories like formalwear, comfortwear, clubwear/partywear, and so on.

This Technopak - Images F&R Research study observes a general tendency of customers of

upgrading to higher ranges as a result of which we have highest value growth in the super premium and premium ranges. While volume has shown a growth of 26.5 percent in the super

premium range with 15 percent value growth, volume in the premium and mid ranges grew ataround 17.0 and 13.3 percent, with 10-12 percent value growth in 2009. Likewise, value growthis observed to be highest in the super premium, followed by premium range with 12 percent.

This clearly shows that customers are willing to pay more for better quality, and have become

sensitive to quality products. Hence, there is scope for companies to enter the higher ranges.

Men’s Trousers

Valued at INR 143.1 bn in 2009, the men’s trousers market, constitutes yet another major apparel

category and here too the maximum growth in value terms has taken place in the super premium

range (22.6 percent), followed by the premium range with 19.8 percent volume growth in 2009.Similar to men’s shirts, here also value growth rate is highest in the super premium and premium

range of trousers (12 percent each) followed by mid range (10.0 percent). Volume growth rate in

low range has shown a decline in 2009 at 9.1 percent over the year 2008 for the trousers market.This further enforces our analysis in the previous report that more and more men are switching

over from tailored to ready- towear trousers at the entry level, which is a compliment to the

efforts of manufacturers and brands for having satisfied these customers in matters of fit andsizing.

Men’s Formal Suits, Jackets & Blazers

The segment of men’s formal suits, jackets and blazers is currently valued at INR 48.3 bn and is

now witnessing a rapid shift from tailored to ready-to-wear, as is evident from the higher volume

growth rate of 10.2 percent in 2009 as compared to 5.0 percent in 2008; value growth has also

been remarkably high, 12.6 percent in 2009 over the year 2008. Value growth was highest in the

super premium range (13.4 percent) of formal suits, jackets and blazers wherein volumes grew by 7 percent in 2009. However, volume growth in economy range was highest at 11 percent,

which resulted in 13.3 percent growth in sales value.

Men’s T-Shirts

The t-shirt category is currently valued at INR 44.3 bn; volume has shown a growth of 6.1

percent and value 9.1 percent in 2009 as compared to previous year. Value growth was highest insuper premium and premium ranges (nearly 12.3 and 11.8 percent respectively)in 2009 over the

year 2008. This means there is sufficient scope for super premium and premium brands. Unlike

other apparel categories of menswear, low ranges of t-shirts have grown most compared to mid

and economy ranges of t-shirts. Thanks to private labels from organised retail chains, the masssegments, low and economy ranges, experienced higher volumes growth of 4 and 5 percent in

2008 as compared to 3 and 4 percent growth rate respectively in 2007.Men’s Innerwear

As mentioned in our 2009 Apparel Report, men’s innerwear segment is indeed witness to more

and more consumers opting for hosiery underwear as against tailor-made woven underwear.

Statistics show 5 and 5.6 percent volume growth in the entry level low and economy ranges in2009 as compared to the previous year. The men’s innerwear market is worth INR 22.2 bn and it

experienced overall value growth rate of 8.1 percent in 2009 which is slightly lower than the

previous year when value growth was recorded 8.8 percent . The super premium range recorded



the highest value appreciation with a 18.3 percent growth, while the mid ranges has recorded a

value growth of 13.2 percent.

Source: Images Report 2009

14 References

14.1Book Reference

Book Authors

Retail Management Chetan Bajaj, Rajnish Tuli, Nidhi Shrivastava

Indian Garments industry V Subbulakshmi

How to export garments successfully R.S. Shukla

Garments export Darlie O Kashy

Export Policy, procedures

and Documentation M. I. Mahajan

14.2Web Reference

Sides Dated Timed

www.indiaretailing.com 6/4/2009 23.45

www.ibef.com 9/4/2009 22.00

www.business.mapsofindia.com 14/4/2009 12.20

www.indiafdiwatch .org 24/4/2009 00.25

www.indian ground.com 23/4/2009 01.00

http://www.indiaretailing.com/


http://www.ibef.com/


http://www.business.mapsofindia.com/

http://www.indiafdiwatch.org/


http://www.indianground.com/




http://www.business.mapsofindia.com/





www.indiaretailing.com 25/4/2009 18.35

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Size of Indian Retail Market Across Segments

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