Summary:

The organized retail apparel industry is expected to rise by 8-10% this fiscal year, owing to regular monsoon demand, lower inflation, and festive seasons. According to Crisil Ratings, the growing preference for inexpensive, fashionable apparel that mimics high-fashion styles will be the key revenue generator, with the mass market category accounting for 60% of total sales.

Mr. Anuj Sethi, Senior Director at Crisil Ratings, stated that industry growth is likely to decrease to 8-10% from the previous rate of 11-12% observed between 2018 and 2023. Retailers are focusing on operational efficiency, sustaining margins of 7.2-7.4% despite rising marketing expenses. Fast fashion is gaining traction, but mass market sales remain dominant. Retailers will concentrate on tier II and III cities, with predicted area additions falling to 2.2 million square feet and revenue density remaining unchanged at US$142.37 per square foot.

Source: IBEF 

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