With implementation of innovative measures and by undertaking different strategies, retailers have managed to bring about a visible transformation in the domestic apparel retail industry  Although many sectors were adversely affected due to the global economic recession, India being the fifth largest retail destination continues to attract foreign investment. The domestic market is now on a revival mode and is striving to maintain its position in the global market. Retail companies are working at optimising their spends, re-looking into projects that are extravagant, R&D costs are being brought down to more specifics, performance is being linked to targets achieved, elaborate back-end processes are being cut down to save infrastructure costs and product extensions that are not profitable are being slackened. In a bid to improve merchandise sales, apparel retailers are trying to be innovative, thereby offering better product value and wider choice to consumers.
Transformation in apparel retail industry
The urban population residing in metros has a high spending capacity, which is likely to bolster apparel sales. However, consumers are now increasingly looking for value for money. Therefore, apparel retailers should focus on improving product quality by coming up with varied clothing range suitable for specific seasons and occasions.
With the upturn in the domestic retail market, retailers are on an experimental mood. Apparel retailers are introducing new range of garments in order to draw consumer attention, especially in the metros. For example, some apparel brands have launched eco-friendly clothing range, which is manufactured using natural dyes, cotton and linen fabrics to provide comfort to consumers.
Previously, domestic consumers used to look for discounts on various products. However, there has been a change in the scenario. Currently, most consumers especially the youth have become quite brand conscious and are opting for high quality products and the price tags do not bother them. For example Blackberrys, a formalwear brand, is catering to the fashion forward corporate segment and also offers a wide range of choice for evenings, weddings and party wear. The brand reaches out to executives, ranging from middle to senior-level executives as well as entrepreneurs. The product portfolio comprising trousers, suits, jackets, shirts and other accessories is stylish and brings in an air of confidence.
Road ahead
In a bid to earn higher profits most retail companies have been currently focusing on tier II cities, wherein lies huge potential that is still untapped. Therefore, retailers are constantly working at optimising their spending and distribution mix depending on the preferences of demographic grouping. The essence of the retail apparel brands further takes shape on the shop floors by showcasing the products through mood groupings and by providing interactive sales support.
With well thought out strategies and insight into retail dynamics, retail companies have not only been able to survive the recessionary pressures but have managed to earn high profit margins. This has further encouraged retail companies to aim at opening more number of stores by the end of 2010. Apparel retailers are confident that they will be able to earn very favourable margins during this year due to hike in the tax slabs that has resulted in the increase in the monthly income and in turn has raised consumer spending capacity.
Sunil Goklani, retail head of Blackberrys, a reputed apparel retail company in India |
