A report by Motilal Oswal Financial Services says that value fashion is the fastest growing segment in the apparel sector. Whereas the overall value apparel category is projected to report a 6 per cent CAGR over CY ’20-25, organised value apparel retail is expected to outperform the overall value category and post about 13 per cent CAGR during the same period.
The increased disposable income, a favourable demographic profile with a large addressable market of millennial and Gen Z customers and urbanisation will drive the growth.
It is being said that the entry of national apparel retailers in the value fashion segment is likely to fuel a shift from unorganised to organised players.
Targeted at budget-conscious consumers the value fashion segment constitutes about 57 per cent of the overall apparel market.
With the aggressive success of Zudio (Trent), the segment has seen entries of national retailers such as Yousta (Reliance Retail), Style-Up (ABFRL), and InTune (Shoppers Stop).
The report pointed out, “While the market presents tremendous opportunities, aggressive entry by national retailers could be a red flag. Conversely, we believe that if Reliance Yousta, Shoppers Stop’s InTune, V-Mart, and ABFRL can execute their plans properly, the growth potential is substantial from hereon.”
