Smart casual is the new formal wear in India

Corporate dressing has undergone a transition with strict formal wear in pastel and shades, stiff collar, minimal design, a tie or even a formal suit becoming passé. With the GenX moving up the corporate ladder, smart casual wear including denims and chinos have made an entry into

boardrooms. A RNCOS research insight into Indian apparel retail market reveals that the idea of casual wear has more than arrived. The segment is expected to make deeper inroads into the psyche of Indian fashion consumers.

It

is estimated that the Indian apparel market which stood at Rs 2.05 lakh crores in 2012, will register a CAGR of 9 percent to reach Rs 3.15 lakh crore, in 2017. Further, given the increasing trend towards comfort and a trendy look, the growth rate is expected to be higher for casual wear segment.

Casuals all the way

Interestingly, it’s not just young office goers who are opting for smart casuals even employers are encouraging them to do so. And this gradual change is surely percolating down to the shelves of formal wear brands. And they are bringing in styles and designs to match demand. Most formal wear brands are reporting lower sales contribution from formal wear.

High-end T-shirts, denims and chinos are flying off the racks with consumers loosening their purse strings to purchase such merchandise. Most big corporate houses are now adopting the open work-wear policy, letting their employees come in smart casuals. Experts says that casual wear lets people feel relaxed promoting a culture that is not bureaucratic, hierarchical, giving equal opportunities all.

The ‘casual wear’ segment covers a wide array of products ranging from office and workplace casuals to beachwear and sportswear, covering a wide spectrum of categories. The regular casual wear is also changing its style as demand and sub categories like ‘business casuals’, ‘corporate casuals’, ‘smart casuals’, ‘resort casuals’, ‘party wear’ are emerging. In fact, the boundaries of these sub categories of casual wear are blurring.

Formals get a casual treatment

Companies like Aditya Birla Group, don’t force their employees to follow a strict dress code. But as corporate are relaxing work wear norms, formal wear category seems to be getting neglected affecting the growth of the segment. Louis Philippe, for instance now earns over 40 percent from casual wear and jeans. The difference between formal and classic casual does not exist any longer. Smart casuals are the new hot trend.

As per estimates, the casual wear segment now contributes more than 50 percent of the retailers’ sales in the men's apparel category, up from 25 percent a few years back. However, senior management everywhere still prefer formal wear to casuals with streams like banking, finance and consultancy still following the conservative formal office dress code.

As RNCOS Research points out, by 2020, almost 35 percent of the Indian population will be living in urban areas. This high urban population is expected to splurge on casual wear products and as a result, by 2020, there will be more than 70 million aspiring consumers who can afford to consume on par with consumers in the developed world.