Fashion and lifestyle market to grow at 12 per cent CAGR

A recent survey A T Kearney has estimated the Indian fashion and lifestyle market to grow at a compounded annual growth rate (CAGR) of 12 per cent over the next five years to reach Rs 3,94,000 crores. Presently, it is estimated at Rs 2,21, 000 crores.

Apparel constitutes 57.2 per cent of the total market and it will grow to 59.9 per cent by 2020. Footwear, on the other hand, will decline from 34 per cent to 26.1 per cent in the same period. Accessories market share would grow from 8.8 per cent to 14 per cent in the next five years. The survey was carried out by AT Kearney India.

Men’s apparel currently dominates the market space and soon women’s clothing segment will grow at a faster rate and equal men’s wear segment this year. It will match men’s segment in terms of 37 per cent market share each in 2016. Debashish Mukherjee, Head, Consumer and Retail, A T Kearney India believes that organised retailers should pay more attention to women retailers.

The survey also stated that retailers should customise their brand and product offerings across different regions and city tiers. Their overall strategy for each brand should be reflected in the brand assortment choices made at a store level. Also, fashion brands have a strong potential to expand their reach and gain scale in India.