Reliance Retail will become the biggest garment seller by the next two years. This will drive the government’s demand in the market and not showing signs of slowdown.
The customer spending is based entirely on India’ growth and feel-good factor in the market. According to Akhilesh Prasad, “India will be the fastest growing economy and there is no problem. So, we are managing customer sentiment which ensures the market grows”.
There are more than 4000 brands and stores such as Trends, Centro, Azorte, Fashion Factory, Reliance, Marks and Spencer, etc. Reliance industries has grown by 17%on a compounded annual rate in the last decade with the electronics expanding at the fastest rate. This is followed by the fashion and lifestyle which is at 43%. The grocery is at 41%. Fashion contributes to the fastest to the overall profit percent with a margin of 24%.
If the income grows in India, there might be a premium segment which might grow as well. Reliance also opened the first store of American brand Gap in India as this will give rise to a partnership. During the Gap launch, Akhilesh Prasad, CEO of Retail Fashion and Lifestyle told, “ Gap has understood the Indian market better after the first stint. We have also sat intensely with them and explained how Indians have different usage of colour and a lot of seasonality”.
Fashion is the fastest growing industry in 2 and 3 tier cities of India with 93% growth in fiscal 20222. Online shopping starts with the shopping of fashion.The Indian consumption sector has been skewed over a decade on a narrow page. The economy is broading across more cities. Reliance has opened 789 new stores in a land of 6 million square feet. The consumers also returned to the stores as it recorded the highest ever footballs in the quarter at 2012 million across an increase of 25.6%.
