Despite the slowdown, Indian apparel market is expected to grow annually at 13-15% to cross the $125 billion (Rs 675,000 crore) mark by 2020, a survey by Clothing Manufacturers Association of India (CMAI) has found. At present, India’s apparel market is estimated to be around $50 billion (Rs 270,000 crore).
“Retail will play a pivotal role in India’s growth and of this retail will be an important part. Though growth of 20-25% in apparel is not going to be an easy one,” said Rahul Mehta, president, CMAI.
Mehta said that increasing purchasing power of youth will drive the the growth.
“The growth is primarily driven by rising income levels, young population, increasing preference for branded apparel and a surge in demand of rural and the semi-urban areas,” he said.
Factors like the changing fashion trends, growing consumer class and rising urbanisation have led to the growth in the apparel industry. Increasing retail penetration, growing service class and the increasing share of the designer wear have also been the drivers for growth, the agency further said.
“The market is not bullish yet retailers are seeing decent growth in the fashion business. While the branded apparel segment is still evolving, going forward by 2020 we can expect it to contribute 40% from the current 25%,” said Prashant Agarwal, joint managing director, Wazir Advisors, a management consulting firm.
Meanwhile, founder of Future Group, Kishor Biyani said that there’s immense opportunity for growth in the apparel industry.
“The opportunity for growth is immense. International players entering India will have to learn from the mistakes domestic players made for quicker growth,” said Kishore Biyani, founder and CEO, Future Group.