India’s potential lies in the growth of smaller cities that have been witnessing transformation over the years. While the metros will continue to witness emergence of new malls and lifestyle stores, almost a-third of new development will happen in the Tier-2 and Tier-3 cities. The factors driving the growth include rising incomes, lifestyle changes and increased digital connectivity. Besides availability and cost of retail space in these cities too is 30-40 per cent cheaper to that in the metros. Team AOI takes a view speaking to heads of some popular retail brands.
Homeware category globally is growing at a phenomenal rate with overall consumption witnessing a double digit growth, according to Statista. Revenues in the furniture and homeware segment, amounting to US $ 1,97,629 million in the last fiscal, will see annual growth rate of 10 per cent in the period 2019 to 2023.
Looking at the present scenario and growing challenges in apparel business, manufacturing is one of the most difficult tasks for SME companies. Braving odds, few new organisations are going for investments. AOI met 3 such players from different parts of India and tried to find what motivates them to invest in this challenging industry, and what their strategy to survive is.