The demand for fashion accessories in india is growing, it has been estimated that the fashion accessories market is expected to grow at a CAGR of 12 percent to touch us$ 6 billion by 2019. Amit Gugnani, SCP – Fashion (Textile & Apparel) and Kanti Prakash Brahma, Principal Consultant – Fashion, Technopak share insights on the organised and unorganised players.
Market Size & Growth
The demand for fashion accessories in India is growing as Indian consumers see changing fashion accessories as an easy and affordable option by which to alter their look and style.
Although a number of products can be considered fashion accessories, in this article watches, bags, belts and wallets alone are considered the primary fashion accessory items.
The Indian fashion accessories market was worth US$ 3 billion, in 2013, and is expected to grow at a CAGR of 12 percent to touch US$ 6 billion by 2019. The market is largely dominated by unorganised players. Further, it is estimated that organised retail contributes only 16 percent to the bags, belts and wallets markets and 45 percent to the watches market.
The increasing acceptance of fashion accessories among Indian consumers lend optimism to the belief that the currently nascent fashion accessories market can be expected to go through a dynamic phase in the years to come and witness a series of innovations, apart from the entrance of new players.
Besides watches, bags, belts and wallets, other fashion accessories like shoes and jewelry are also expected to register high growth rates in India. Traditionally, Indian women have always used jewelry as a means to improve their look and as status symbols.
However, in recent years, the trend has shifted to the use of occasion-specific fashion jewelry featuring better design elements and weighing less. The lower levels of brand awareness within the Indian jewelry market signal a huge opportunity for organised players who can gain significantly by targeting this segment.
Both demand and supply side factors have provided impetus to the growth of the fashion accessories market in India. These are discussed hereunder.
Demand Side Factors
Robust economic growth and increasing spending power. Although India’s economic growth has slowed in recent years, the country still remains a promising emerging economy with a growth story that is expected to remain nearly intact over the short to medium run.
With increase in economic activity, job opportunities and spending power have increased across the country which in turn has contributed to the heightened demand for fashion and fashion accessories.
Favorable Demographic Conditions
India is a young nation with a median age of around 27 years; it is expected that, by 2020, India will emerge as the youngest emerging economy of the world. This young population has better access to education and job opportunities and is willing to spend on fashion accessories which, among this age group, are considered a necessary part of the attire and seen to reflect the wearer’s personality.
Growing Exposure to Fashion Statements
The exposure of Indian youth to the latest fashions trending in developed markets has one up over the past two decades. Jobs in multinational companies with a multicultural work environment, increasing work-related travel, etc. are driving up the exposure to newer fashion accessories.
Supply Side Factors
Corporatisation of fashion and fashion accessories retail. The increasing penetration of corporatised retail into fashion and fashion accessories categories has contributed to the development of an ecosystem within these categories in terms of better quality and service levels, product designs, improved distribution, and marketing processes. Most corporatised retailers have also focused on visual merchandising in order to lure consumers to fashion accessories.
Customisation Of Product Offerings
Brands and retailers offering fashion accessories have managed to focus on customisation of product offerings to suit their target consumer segments. For instance, the choice of accessories for consumers buying apparels in the premium price segment is different from those buying apparel in the mass price segment.
Brands and retailers offering fashion items for a particular target consumer have also begun offering accessories for the same set of consumers, often under the same brand name. Some players have introduced private labels for fashion accessories as well so that value conscious consumers can also afford quality accessories from a renowned source at affordable prices.
Promotion Of Accessories In Online Retailing
Online fashion retailers operating in India have managed to attract accessories customers to the e-tailing model. Almost all leading online fashion retailers offer accessories longside their apparel products. Fashion consumers have also started purchasing accessories from online portals due to the availability of a wider portfolio of accessories, more options in terms of brands and the relative ease of purchase.
Future of Accessories Market
For retailers and brands, the fashion accessories market in India will continue to present an opportunity to innovate and grow. The accessories market is no longer limited to urban women; it has penetrated to smaller cities and rural pockets as well. Also, apart from the women, Indian men have also become more conscious and aware about their fashion accessories.
It is expected that the growth of the accessories market will be driven by the increase in penetration of women accessories to smaller cities and rural India as well as the rising acceptance of men’s accessories in both urban and rural areas. The luxury end of the Indian fashion accessories market is expected to grow more rapidly than other segments as this more affluent consumer group will increasingly consider fashion accessories as a means of building identity and differentiating itself from the masses.
These opportunities in fashion accessories are expected to tempt many international accessories brands to foray into India, even as existing Indian and international fashion brands continue to offer additional fashion accessory products under existing brand names.
The retailing and retail penetration strategy of organized fashion accessories players will have to keep pace with their fashion retail strategy. While some brands and retailers have first introduced fashion products and later followed these up with fashion accessories during the initial stages, in the years to come, many of them will consider establishing themselves as complete fashion solutions providers by introducing all fashion-related needs including fashion accessories right from the establishment of their brand or retail Outlet.
With the increasing penetration of corporatised retail, the accessories market will also witness the introduction of more styles and designs. Many Indian retailers and manufacturers will continue to blend the latest international fashion trends with traditional Indian styles to make their fashion accessories distinct and unique.
Succeeding in the Indian fashion accessories market will depend on the ability of players to innovate in order to attract consumers through design, style, and product offering.