Contrary to popular perception about women being on shopping spree, it is the men who hold 41.7 percent share of the Indian apparel market followed by women at 37.5 percent and kids wear at 20.8 percent, according to Indian Business of Fashion report 2018 released at India Fashion Forum.
Owing to changing consumer preferences and awareness for fitness, active wear in menswear has recently evolved as a significant category with high growth potential.
However, on compounded annual growth rate, women’s wear is marginally ahead at 7.6 percent compared to 7.4 percent for menswear. The report has estimated that kids wear will demonstrate higher CAGR of 8.1 percent in the next decade, resulting in market share of 21.6 percent by 2027.
Apparel and accessories contributes approximately 8 percent of the total merchandise retail market of US $710 billion, and is the 2nd largest after food & grocery.
The 15th edition of the India Business of Fashion report, which is a collaborative effort of the Images Group, and WGSN, Technopak, NIFT, Wazir Advisors, Google, Frost & Sullivan, Eastman Textiles, View, Tukatech Inc, JLL India, Stylumia, Safex, Dream Theatre, RIL, Reliance Jewels, Thread Sol, Isobar, FRDC, Fabriclore, Mineral, Arvind, Woolmark, and many several other fashion columnists, was released by Sarada M. Muraleedharan, Director General of National Institute of Fashion Technology on Day 1 of the two-day India Fashion Forum 2018.
In the women’s wear segment, ethnic wear is the single biggest category with a share of 71 percent dominated by sarees, salwar kameez among others. Saree has a market value of Rs 39,350 crore and 33 percent share in womenswear market.
Inner wear is another promising category in women’s wear and growing at a CAGR of 11.8 percent. It is expected to reach the size of Rs 56,364 crore by 2027 from the current market size of Rs 18,454 crore, as per the report.
Indian kids wear market in 2017 was estimated at Rs 66,904 crore accounting for 20.8 percent of total apparel market of the country and it is expected to grow at CAGR of 8.1 percent, beating both men and women’s wear, to reach Rs 1,45,445 crore by 2027.