With new technologies, trends and higher market reach, the denim sector has promising growth potential. Ashish Dhir, Associate Vice President, Fashion-Textile & Apparel and SaimaNigar-Associate Consultnat, Fashion-Textile & Apparel, Technopak, map the status of denims in India today.
Indian retail market is estimated to be worth Rs 53,06,400 crore (US$ 792 billion) in 2018 and is expected to reach Rs 1,50,68,300 crore (US$ 2,249 billion) by 2028, growing at a Compound Annual Growth Rate (CAGR) of 11 percent. It is envisaged that the current fashion retail market worth Rs 3,61,000 crore (US$ 54 billion) will grow at a promising CAGR of 8.1 percent for next ten years to reach Rs 7,88,500 crore (US$ 118 billion) by 2028.
Indian apparel industry, which is the second largest contributor in the retail industry after food and grocery, is seeing some major shifts. Entry of international brands, changes in preferences from non-branded to branded, the fast growing economy, large young consuming population in the country has made India a highly lucrative market.
India has the world’s largest youth population, which is becoming fashion conscious owing to mass media and social media penetration. This has opened unprecedented retail market opportunities. The promising growth rate of 8.1 percent makes Indian fashion industry prominent in the retail sector.
DENIM WEAR: MARKET SIZE AND GROWTH
The Indian denim market is exhibiting continuous growth over the years. With new technologies, trends and higher market reach, this sector has promising growth potential. Even in rural areas, denim is becoming highly fashionable with most men and teenager girls opting denim wear over traditional outfits.
Denim wear market is estimated to be Rs 29,203 crore in 2018. Denim wear market is expected to grow at CAGR of 12 percent and reach Rs 91,894 crore by 2028. The market in India is dominated by men’s segment, accounting ~86 percent of the total market size. However, women denim wear segment is expected show higher CAGR of 13 percent than men’s segment (12 percent).
Denim is a high growth category as it is fashionable and comfortable, and enhances style quotient. The value growth within the denim wear owes to increased demand for stretch and light weight fabric, varying colours, styling and detailing. This trend is emerging across all categories (men’s, women’s and kids).
