India’s apparel retail to touch Rs 4.70 lakh cr by 2020

India's textile and apparel industry (domestic and exports) is expected to grow from Rs 3.27 lakh crores to Rs 10.32 lakh crore by 2020, says a new research report by Technopak Advisors, a leading management consultancy. It estimates that by 2015,

the overall Indian apparel industry would be worth Rs 2.88 lakh crores and the organized market share will be 25 per cent of this. Therefore, one can say that the branded apparel market which is a major chunk of the organized market will thus be around Rs 55,000-60,000 crores.

Interestingly, the Technopak study comes at a time when Global Industry Analysts, Inc, (GIA) a reputed publisher of off-the-shelf market research too has come up with a global study that predicts the world branded apparel market will reach $600 bn by 2015. Hence, India might just have around 2 per cent market share. The GIA report suggests that although currently tempered by the economic recession, world market for branded apparel is nevertheless expected to recover and gain momentum over the next few years. What’s expected to drive growth is renewed consumer confidence and a rapidly increasing demand from developing markets, especially Asia-Pacific, and sustained growth in the children’s branded apparel segment.

The GIA report also suggests that it’s the children’s branded apparel segment which offers maximum hope for various stake holders in the branded apparel segment. While men, women’s and sports branded apparel have come under the yoke of the recession, children’s branded apparel although hurting exhibits greater resilience to the economic turmoil. It also says that growth in the branded apparel market remains encouraging in developing regions such as, Asia-Pacific, which displays the fastest compounded annual growth rate (CAGR) of about 2.34 per cent over the analysis period.

Interestingly, the Technopak study back in India too reveals that the domestic textiles and apparel market in 2009 was Rs 2.18 lakh crores and is expected to grow at a CAGR of 11 per cent to Rs 6.56 lakh crores by 2020. The domestic apparel retail market was worth Rs 1.54 lakh crores in 2009 and will touch Rs 4.70 lakh crores by 2020. And even though, as of now the menswear segment has a majority share in the apparel market with 43 per cent and is growing at 9 per cent, women's wear is growing faster at 12 per cent and is expected to have 43 per cent share by 2020 from the current 37 per cent. Similarly, the kids wear segment is growing rapidly with higher growth in girl's wear at 11 per cent and boys wear is growing at 10 per cent. The report points out that the home textile market is expected to grow 9 per cent move up from Rs 15,570 crores in 2009 to Rs 40,000 crores by 2020.