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Passage IV
The Indian retail market may have slipped to single digit revenue growth for the first time last year, but top global fashion brands bucked the trend by offering stylish designs to Indian consumers at affordable rates and discounts. International brands in the country- Zara, Marks and Spencer, Benetton and Tommy Hilfiger- all posted anywhere between 21% and 56% year-on-year jump in their revenues last fiscal according to their annual filings. And their base is not too low either. Sales of these four brands put together equal apparel section of department store chains Shoppers Stop and Lifestyle International that sell around a hundred brands and is more than half of Aditya Birla’s Madura Fashion and Lifestyle that owns brands such as Louis Philippe, Van Heusen and Allen Solly.
Experts attribute the growth of global fashion brands to consumers moving towards marquee labels and international style as they become affordable and priced at par with premium Indian brands. Managing Director at Benetton India, said besides overall sales, the Italian brand has also seen a spike in average customer spend. “Apart from our Italian lineage of having hip and trendy styles, Benetton’s basket and average ticket size also increased” he said. While H Managing Director declined to comment on financial numbers, he said Benetton has identified opportunities in niche growth pockets such as airports and smaller towns to fuel growth.
Last week, Marks and Spencer global Chief Executive had said the company’s focus on quality and style will help it make India its largest international market outside its home market of the UK. Most of the growth of these international retailers was in same store sales as they hardly expanded their store count last year. For instance, Inditex Trent, which runs Zara in the country, grew its sales more than 56% despite not adding a single store. M and S Reliance opened just six outlets during the year while its sales reported 28% like-to-like growth.
Their impressive growth comes at a time when the overall retail sector in the country experienced an overall single digit revenue growth in 2012 for the fist time in its history, according to India ratings and research, formerly known as Fitch Ratings. India’s retail garment market has over the past few years attracted a clutch of the world’s largest private labels that are banking on the country’s young consumers to spur Western wear business.
According to a 2012 report by Boston Consulting Group, consumption expenditure on apparel in the country is expected to increase 3.8 times to$
The Indian retail market may have slipped to single digit revenue growth for the first time last year, but top global fashion brands bucked the trend by offering stylish designs to Indian consumers at affordable rates and discounts. International brands in the country- Zara, Marks and Spencer, Benetton and Tommy Hilfiger- all posted anywhere between 21% and 56% year-on-year jump in their revenues last fiscal according to their annual filings. And their base is not too low either. Sales of these four brands put together equal apparel section of department store chains Shoppers Stop and Lifestyle International that sell around a hundred brands and is more than half of Aditya Birla’s Madura Fashion and Lifestyle that owns brands such as Louis Philippe, Van Heusen and Allen Solly.
Experts attribute the growth of global fashion brands to consumers moving towards marquee labels and international style as they become affordable and priced at par with premium Indian brands. Managing Director at Benetton India, said besides overall sales, the Italian brand has also seen a spike in average customer spend. “Apart from our Italian lineage of having hip and trendy styles, Benetton’s basket and average ticket size also increased” he said. While H Managing Director declined to comment on financial numbers, he said Benetton has identified opportunities in niche growth pockets such as airports and smaller towns to fuel growth.
Last week, Marks and Spencer global Chief Executive had said the company’s focus on quality and style will help it make India its largest international market outside its home market of the UK. Most of the growth of these international retailers was in same store sales as they hardly expanded their store count last year. For instance, Inditex Trent, which runs Zara in the country, grew its sales more than 56% despite not adding a single store. M and S Reliance opened just six outlets during the year while its sales reported 28% like-to-like growth.
Their impressive growth comes at a time when the overall retail sector in the country experienced an overall single digit revenue growth in 2012 for the fist time in its history, according to India ratings and research, formerly known as Fitch Ratings. India’s retail garment market has over the past few years attracted a clutch of the world’s largest private labels that are banking on the country’s young consumers to spur Western wear business.
According to a 2012 report by Boston Consulting Group, consumption expenditure on apparel in the country is expected to increase 3.8 times to
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