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Indian Apparel Industry


The Indian apparel industry remains largely unorganised, with approximately 60% of the market operating outside formal structures. This analysis focuses on the 40% of the industry that is organised, offering insights into market dynamics, competitive strategies, and growth potential within this structured framework.

 

 

 

 

 

 

Key Metrics 

  • Revenue per sqft

  • Average sale value

  • Average price per product

  • Footfalls

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBO vs MBO


In the retail landscape, companies adopt distinct strategies based on their brand positioning and target market. Brands like Fab India, Manyavaar, and Zudio operate Exclusive Brand Outlets (EBOs), allowing them to create a focused brand experience, control brand representation, and establish a strong connection with their customers. This approach enhances brand loyalty and enables them to showcase their unique identity and product offerings.

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Conversely, companies such as Pantaloons and Lifestyle utilize Multi-Brand Outlets (MBOs), which allow them to offer a diverse range of products from various brands under one roof. This strategy caters to a broader customer base, providing convenience and variety, which can enhance footfalls and drive sales. MBOs facilitate cross-selling opportunities, appealing to customers seeking a one-stop shopping experience. Ultimately, the choice between EBOs and MBOs reflects a retailer’s strategic goals, target audience, and market dynamics.

 

E-Commerce Presence: A Strategic Choice

In today’s retail environment, companies like Pantaloons and Fab India have embraced e-commerce and developed dedicated online shopping platforms, allowing them to reach a wider audience and enhance customer convenience. This approach enables them to capitalize on the growing trend of online shopping and provides customers with easy access to their products.

Conversely, brands like Zudio have opted to forego an online presence to avoid the complexities and costs associated with e-commerce, such as logistics, inventory management, and delivery operations. By focusing solely on physical stores, Zudio can streamline its operations, reduce overheads, and maintain a strong in-store experience. This strategy allows them to concentrate on building brand loyalty through direct customer interactions and offers a controlled shopping environment. Ultimately, the decision to engage in e-commerce or remain offline reflects each brand's operational capabilities, target market, and long-term strategic goals.


Operating models

There are many operating models in which the industry operates. Most of the companies operate in COCO or FOFO model while some players like Zudio do FOCO model. I’ve added an elaborate breakup of the each of the operating model in the image below.

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