1

Industry Report On
Indian Value Retail Market
including Lifestyle & Home
6th March 2024
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Section Chapters Page No.

1 Overview of the Global and Indian Economy 3

2 Retail Market in India 14

3 Apparel & Footwear Market in India 20

4 Home & Living Market in India 35

5 Other Categories in Lifestyle Segment 39

6 Value Retail in Lifestyle & Home Segment 44

7 Operational & Financial Benchmarking 54

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1. Overview of the Global and Indian Economy

1.1. Macroeconomic Overview - GDP and GDP Growth
India is ranked as the world's 5th largest economy in FY 2023 and is expected to be in the top 3
global economies by FY 2030

India is ranked fifth in the world in terms of nominal gross domestic product ("GDP") in FY 2023 and is the third
largest economy in the world in terms of purchasing power parity (“PPP”). Between FY 2014–2022, India’s
nominal GDP has grown at a CAGR of 9.5%, surpassing growth rates of USA and China. India is expected to be a
~USD 5.8 trillion economy by FY 2028, growing at a CAGR of 11.0% between FY 2022–2028.

Exhibit 1.1: GDP at current prices (In USD Tn) and GDP Ranking of Key Global Economies (CY 2023)

CAGR CAGR
CY CY CY CY CY CY CY CY CY CY CY CY
Country (2013- (2021-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023P 2027P
2021) 2027)
USA 16.8 17.5 18.2 18.7 19.6 20.6 21.4 20.9 23 25.5 26.9 31.4 4.00% 5.34%
China 9.6 10.5 11.1 11.2 12.3 13.9 14.3 14.7 17.5 18.1 19.4 22.3 7.79% 4.11%
Japan 5.2 4.9 4.4 5 4.9 5 5.1 5 4.9 4.2 4.4 4.9 -0.74% -0.10%
Germany 3.7 3.9 3.4 3.5 3.7 4 3.9 3.8 4.2 4.1 4.3 5.3 1.60% 4.05%
India* 1.4 1.6 1.7 1.9 2.1 2.4 2.5 2.5 2.9 3.4 3.7 5.8 9.53% 12.25%
UK 2.8 3.1 2.9 2.7 2.6 2.9 2.8 2.7 3.2 3.1 3.2 4.3 1.68% 5.19%
Brazil 2.5 2.5 1.8 1.8 2.1 1.9 1.9 1.4 1.6 1.9 2.1 2.6 -5.43% 8.65%
Russia 2.3 2.1 1.4 1.3 1.6 1.7 1.7 1.5 1.8 2.2 2.1 2.0 -3.02% 1.52%
Indonesia 0.9 0.9 0.9 0.9 1 1 1.1 1.1 1.2 1.3 1.4 2.0 3.66% 8.43%
Turkey 1 0.9 0.9 0.9 0.9 0.8 0.8 0.7 0.8 0.9 1.0 1.5 -2.75% 11.05%
Saudi Arabia 0.7 0.8 0.7 0.6 0.7 0.8 0.8 0.7 0.8 1.1 1.1 1.2 1.68% 7.43%
South Africa 0.4 0.4 0.3 0.3 0.3 0.4 0.4 0.3 0.4 0.4 0.4 0.4 0.00% 1.79%
World 77.6 79.7 75.1 76.4 81.4 86.4 87.7 84.9 90.1 100.2 105.6 127.5 1.88% 5.96%

Source: World Bank Data, IMF, RBI; India Data from RBI, Future growth rate from OECD data, Technopak research
1 USD=INR 80
Data in CY
*For India, CY 2013 means FY 2014 and so on.
.
The robust consumption growth of India is outpacing the GDP growth. The re-opening of India’s economy gave
a boost to private consumption trends, and increased exports had a big impact on the GDP growth. Increasing
Urbanization which is driven by better standards of living and opportunities, higher Gross National Income (GNI),
nuclearization, digitalization and premiumization are the factors contributing to higher growth in GDP.

India's GDP Growth is almost twice that of the World Economy

Since FY 2005, the Indian economy's growth rate has been nearly twice as that of the world economy and it is
expected to sustain this growth momentum in the long term. In the wake of COVID-19, India’s nominal GDP
contracted by 1.4% in FY 2021, followed by 18.4% growth in FY 2022 and 16.1% growth in FY 2023. It is expected
to reach USD 5.4 trillion by FY 2028. Between FY 2023 and FY 2030, India’s real GDP is expected to grow at a
CAGR of 6.6%. It is also expected that the growth trajectory of the Indian economy will position India among the
top 3 global economies in terms of nominal GDP by FY 2030, surpassing Germany and Japan. Several factors are
likely to contribute to long-term economic growth. These factors include favorable demographics, reducing
dependency ratio, rapidly rising education levels, steady urbanization, growing young & working population, IT
revolution, increasing penetration of mobile & internet infrastructure, government policies, increasing
aspirations and affordability etc.
4

Exhibit 1.2: Historical GDP Growth (%)

70%

60% 65%

50%

40%

30%
20% 18%
17%17%16% 16%16% 16%
15%15%15% 15% 14%14% 15%
20% 11% 12% 12% 13% 12%14%13%11%10%12%11%11% 12%12%
8% 8% 8% 8.8%
6% -1%
10%

0% 9% 8% 8% 9% 9% 10% 8% 10% 8% 8% 7% 6% 9% 7%
5% 5% 7% 8% 8% 4% 6% 4% 5% 4% 4% 5% 6% 7% 4%
6.7%6.5%6.5%
1%
-10%

2024P
2027P
2030P
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
-6%

% Growth (Real) - India % Growth (Nominal) - India

Source: RBI Data, World Bank, IMF

*2012- GDP Spike in Real growth rate due to change of base from 2004-05 to 2011-12. Hence excluded from decadal growth rate as well

Exhibit 1.3: India's Nominal GDP in FY (USD Tn)

8.0 7.3 20.0%

18.4%
16.1%
15.0%
6.0 13.8% 13.0% 5.2
11.0% 10.5% 11.8% 11.0% 10.6% 12.0%12.0%
10.0%
3.7 8.8%
4.0 6.4%
3.4
2.9
2.4 2.5 2.5 5.0%
1.9 2.1
1.7
2.0 1.2 1.4 1.6
1.1 0.0%
-1.4%

0.0 -5.0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P2027P2030P

GDP (USD tn) GDP Growth Rate (%)

Source: RBI Data, Economic Survey, World Bank, EIU, IMF. 1 USD= INR 80.

Exhibit 1.4: India's Real GDP in FY (USD Tn)

3.5 3.1 10.0%

9.1%
8.3% 8.0%
3.0 7.4% 8.0% 6.8% 6.5% 7.2% 6.7%
6.4% 2.6 6.5% 6.5%
5.5% 6.0%
2.5 2.1
3.9% 2.0 4.0%
1.7 1.8 1.9
2.0 1.6 1.7 2.0%
1.4 1.5
1.5 1.2 1.3 0.0%
1.1 1.2
-2.0%
1.0
-4.0%
0.5 -5.8% -6.0%
0.0 -8.0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P 2027P2030P

GDP (USD tn) GDP Growth Rate (%)

 5

Source: RBI Data, Economic Survey, World Bank, EIU, IMF. 1 USD= INR 80.

State-wise Gross Domestic Product

The Gross Domestic Product of key Indian states are mentioned below. The Eastern states of Bihar, Odisha and
West Bengal’s Gross State Domestic Product (GSDP) CAGR of 10.3%, 11.9% and 10.1% respectively for the period
FY 2015 to FY 2023 is higher than the CAGR of 9.88% of India’s nominal GDP for the same period.

Exhibit 1.5: Gross State Domestic Product of key Indian states in FY (USD Bn) (Current Prices)

CAGR 2015-
Region States 2015 2020 2021 2022 2023
23
Delhi 62 99 95 113 130 9.8%
Haryana 55 92 93 109 124 10.3%
North Punjab 44 67 68 77 84 8.3%
MP 60 116 120 142 165 13.5%
UP 126 213 206 247 282 10.6%
Total Northern GDP 336 632 627 740 839* 12.1%
Bihar 43 73 71 81 94 10.3%
Chhattisgarh 28 43 43 51 57 9.5%
East Jharkhand 27 39 37 45 49 7.6%
Odisha 39 67 68 84 97 11.9%
West Bengal 90 147 144 170 194 10.1%
Total Eastern GDP 229 373 368 436 497 10.2%
Maharashtra 222 332 328 389 NA 8.3%
West Gujarat 115 202 202 242 NA 11.2%
Rajasthan 77 125 127 152 177 10.9%
Total Western GDP 415 659 658 783 NA 9.5%
Andhra Pradesh 66 116 120 142 165 12.2%
Telangana 63 119 118 141 164 12.7%
South Tamil Nadu 134 218 224 259 296 10.4%
Karnataka 114 201 203 245 280 11.9%
Kerala 64 102 96 117 NA 8.9%
Total Southern GDP 447 765 770 914 905* 10.8%
Arunachal NA
Pradesh 2 4 4 4 10.1%
Assam 24 43 44 52 62 12.2%
North- Manipur 2 4 4 5 NA 10.6%
Eastern Meghalaya 3 4 4 5 5 7.9%
Mizoram 2 3 3 3 NA 10.9%
Nagaland 2 4 4 4 NA 8.2%
Tripura 4 7 7 8 9 11.9%
Total North-Eastern GDP 40 69 69 81 NA 10.7%
India GDP 1,530 2,534 2,527 2,995 2531 6.5%
Source: RBI, 1USD= INR 80
Note: CAGR for Maharashtra, Gujarat, Kerala, Arunachal Pradesh, Manipur, Mizoram, Nagaland, Total Western States and Total North-Eastern States have
been calculated for 7-years from FY 2015 to FY 2022 due to unavailability of GSDP for FY 2023.
*- For 2023, the total for Northern states doesn’t include Chandigarh and Jammu & Kashmir’s GSDP and the total for Southern states doesn’t include Goa and
Kerala’s GSDP due to data unavailability. The CAGR is calculated based on the same number.
Note: Northern states (8) include- Chandigarh, Delhi, Haryana, Punjab, Madhya Pradesh, Himachal Pradesh, Jammu & Kashmir and Uttar Pradesh
Note: Eastern states (6) include- Bihar, Chhattisgarh, Jharkhand, Odisha, West Bengal, Sikkim
Note: Western states (3) include- Maharashtra, Gujarat, Rajasthan
Note: Southern states (6) include- Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Kerala, Goa
Note: North-Eastern states include (7)- Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.
 6

Per Capita Income Growth

Income growth, presented by the GNI (Gross National Income) is defined as the total amount of money earned
by a country’s businesses and individuals- as a proxy to benchmark prosperity. India’s income growth is one of
the strongest drivers for higher private consumption trend.

Exhibit 1.6: India's GNI Per Capita (INR) (Current Prices)

3,00,000 20.0%

2,50,000 18.1% 17.6% 15.0%

2,00,000
10.0%
1,50,000 10.4% 9.8% 10.2% 10.1%
9.5%
7.8% 2,42,819 5.0%
1,00,000
5.2% 2,00,184 2,20,528
1,44,120 1,70,222
1,28,655 1,40,899 1,48,261 0.0%
50,000 1,06,096 1,17,131
98,405
-2.8%
- -5.0%
2015 2016 2017 2018 2019 2020 2021 2022 2023P
2023 2024P 2025P

Per Capita GNI (₹) % Growth

Year indicates FY
Source: RBI, IMF projections

Per Capita GDP

India’s Per Capita GDP has almost doubled from FY 2015 to FY 2023, indicating that the Indian economy has
been growing at a fast pace. The per capita GDP for India stands at INR 1,72,761 in FY 2022 and is estimated to
reach INR 1,96,983 in FY 2023, marking a ~76% increase (CAGR of ~8.4%) from INR 98,135 in FY 2015 to FY 2022.
It is projected to grow with a CAGR of 10.0% between FY 2023 and FY 2030.

Exhibit 1.7: India’s Per Capita GDP (FY) and y-o-y growth rate (%) (FY)
4,50,000 20.0%
4,00,000 18.3%

3,50,000 15.0%
14.7%
14.0%
3,00,000 11.8%
10.7% 10.0%
2,50,000 9.3% 9.5% 10.3%
8.4%
3,82,684

2,00,000 7.7% 6.7%

5.2% 5.0%
2,85,442

1,50,000 4.5%
2,10,222

2.4% 3.4%
1,96,983

2.9%
1,72,761
1,49,701

1,46,087
1,42,328
1,07,280

1,17,427

1,27,292

1,00,000 0.0%
17,968

27,800

35,280

49,498

98,135
6,640

8,576

50,000 -2.4%
- -5.0%
1961 1970 1980 1990 2000 2010 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P2027P2030P

Per Capita GDP (INR) Per Capita GDP Growth Rate(%)

Source: Ministry of Statistics and Program Implementation, World Bank, IMF, Technopak Research & Analysis
Note: 1 USD= INR 80
 7

1.2. Private Final Consumption

The high share of domestic consumption in Private Final Consumption Expenditure

GDP growth in India is expected to be driven by the rising Private Final Consumption Expenditure. India is a
private consumption-driven economy, where the share of domestic consumption is measured as Private Final
Consumption Expenditure (PFCE). This private consumption expenditure comprises of both goods (food,
lifestyle, home, pharmacy etc.) and services (food services, education, healthcare etc.). The high share of private
consumption to GDP has the advantage of insulating India from volatility in the global economy. It also implies
that sustainable economic growth directly translates into sustained consumer demand for goods and services.
India’s domestic consumption has grown at a CAGR of 7.3% between FY 2016 and FY 2021, compared to 2.8%
and 4.7% in the USA and China, respectively during the similar period of CY 2015 and CY 2020.

In FY 2022, PFCE accounted for ~60% of India’s GDP. This was much higher than that in China (~39%), and
Germany (~50%), and comparable to that of US (~68%) and UK (~61%) in similar period of CY 2021. With the
rapidly growing GDP and PFCE, India is poised to become one of the top consumer markets globally. It is
estimated that the PFCE’s contribution to India’s GDP will be 60.1% for FY 2023.

Exhibit 1.8: Total Private Final Consumption Expenditure in CY (Current Prices USD Bn)

CAGR
CY CY CY CY CY CY CY CY CY CY CY CY CY
Country 2020-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
2022
U.S. 10,260 10,699 11,047 11,363 11,847 12,263 12,693 13,239 13,993 14,428 14,047 14,347 NA 2.8%

China 2,090 2,637 3,019 3,429 3,845 4,178 4,344 4,745 5,353 5,605 5,611 6,347 8,800 25.2%

Germany 1,872 2,036 1,937 2,036 2,075 1,778 1,829 1,918 2,068 2,018 1,951 1,924 2,680 17.2%

India* 411** 447** 749 863 966 1,084 1,215 1,344 1,505 1,641 1,542 1,718 2,130 17.5%

France 1,463 1,573 1,469 1,536 1,549 1,318 1,341 1,397 1,503 1,463 1,398 1,394 2,050 21.1%
Italy 1,296 1,401 1,279 1,304 1,309 1,116 1,128 1,179 1,258 1,202 1,093 1,108 1,500 17.1%
Brazil 1,330 1,577 1,514 1,526 1,546 1,153 1,154 1,331 1,239 1,216 906 1,230 1,580 32.1%

Indonesia 424 495 518 519 509 495 539 582 594 648 624 723 720 7.4%

Thailand 178 196 212 221 214 206 207 223 248 271 265 259 320 9.9%

Malaysia 123 143 156 167 177 163 165 177 206 218 205 226 280 16.9%

Source: World Bank, RBI, Technopak Research & Analysis

* For India, CY 2011 refers to FY 2012 and so on, India Data in FY
1USD = INR 80

Per Capita Final Consumption Expenditure

The Per Capita Final Consumption Expenditure had shown significant growth pre-COVID. In FY 2020, the average
Per Capita Final Consumption expenditure was valued to be around USD 1,161, a steep increase from USD 880
in FY 2015. Due to the emergence of COVID-19, there was an approximately 6% drop in the Per Capita Final
Consumption Expenditure, to USD 1,090 but it recovered at a rate of 10% to reach USD 1,203 in FY 2022, followed
by a 7% growth to reach USD 1,285 in FY 2023.
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Exhibit 1.9: Per Capita Consumption Expenditure in CY (in USD)

43,130 44,056
40,650 41,276
38,998 39,775 39,849
37,364 38,341

29,654 29,992 30,396 30,553 29,841

28,361 28,819 28,400
26,412

3,571 3,850 4,083 3,972 4,453 4,465

2,802 3,028 3,280
880 1,003 1,053 1,115 1,161 1,203 1,285
938 1,090

2014 2015 2016 2017 2018 2019 2020 2021 2022

India USA China UK

Source: World Bank

1.3. Key growth drivers

1. Demographic profile of India

India has one of the youngest populations globally compared to other leading economies. The median age in
India is estimated to be 29.5 years for CY 2023 as compared to 38.9 years and 39.8 years in the United States
and China, respectively, and is expected to remain under 30 years until 2030. With a growing young population,
there is an increasing demand for premiumization. The younger population is naturally predisposed to adopting
new trends and exploration, given their educational profile and exposure to media and technology. This presents
an opportunity for domestic consumption in the form of branded products and organized retail.

Exhibit 1.10: Median Age: Key Emerging & Developed Economies in (CY 2023)
South
Country India China USA Singapore Russia Canada UK
Korea
Median Age (Yrs.) 29.5 39.8 38.9* 38.9 41.5 45 42.4 40.6

Source: World Population Review, Technopak Analysis

*For USA, the median age is of CY 2022.

More than half of India’s population falls in the 15-49 years age bracket

As of April 2023, India was the most populated country in the world, home to 1.42 billion people, which is about
one-sixth of the world’s population. About 54% of the total population falls within the 15 to 49 years age group,
while 80% of the population is below 50 years old. This demographic distribution highlights that India’s youth
and working-age population contribute to positive demographics.
9

Exhibit 1.11: India’s age demographics (FY 2023) (Population in Mn)

7%
13% 26%

18%
36%

<15 15-24 25-49 50-65 65+

Source: Technopak Estimates

Exhibit 1.12: Age Dependency Ratio (FY)

Age wise Break-up of Female Population Age wise Break-up of Male Population

70+ 2% 70+ 1%
55-70 4% 55-70 4%
45-54 5% 45-54 5%
35-44 6% 35-44 7%
25-34 8% 25-34 8%
15-24 9% 15-24 10%
0-14 14% 0-14 16%

Dependency Ratio (% of working age population) Growth in population (15-34 yrs.)

34.8%
77% 79% 75%
72% 34.1%
64% 59% 33.5% 33.8%
52% 51% 50% 49% 49% 48% 47%
32.2%

1981 1991 2001 2011 2021P

Source: Census of India 2011, World Bank, MOSPI; Age wise break up of population not adding up to 100% due to rounding off
Note: Dependency Ratio is in CY. CY 2017 for India refers to FY 2018 data and so on.

2. Women Workforce
The share of women workforce in the services sector has increased from 17.5% in CY 2010 to 25.1% in CY
2021. This increase of women in the workforce has seen a shift of patterns in terms of household activity,
including an upward trend towards purchase of branded products including fashion and lifestyle.
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Exhibit 1.13: Sector-wise split of female employment (CY)

CY CY CY CY CY CY CY CY CY CY CY CY
Sector
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Agriculture 67.0% 63.6% 60.0% 59.4% 58.7% 57.9% 57.2% 56.4% 55.5% 54.7% 53.6% 58.2%
Industry 15.5% 17.1% 18.8% 18.4% 18.2% 18.0% 17.7% 17.5% 17.3% 17.4% 17.9% 16.6%
Services 17.5% 19.3% 21.3% 22.2% 23.2% 24.1% 25.1% 26.1% 27.2% 28.0% 25.7% 25.1%

Source: World Bank Data

The percentage of Indian women labour force above 15 years of age has observed a slight increase from 22.6%
in the year 2016 to 24.0% in 2022. Increasing percentage of women participating in the workforce is leading to
increased household income and economic growth overall. With greater financial resources, families may be
more likely to spend money on higher quality goods and services, such as education, healthcare, and childcare.
This could have a positive impact on the well-being and development of individuals and communities.

Exhibit 1.14: Labor workforce participation rate, world & India (% of female population 15+ years age) (CY)

47.5% 47.3% 47.1% 47.7% 46.1% 47.1% 47.1%

22.6% 21.5% 20.5% 23.8% 22.8% 23.0% 24.0%

CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 CY 2021 CY 2022

World India

Source: World Bank Data

3. Urbanization

Urbanization is one of the most important pillars of India’s growth story, as these areas serve as the core drivers
for consumption. India had the second-largest Urban population in the world (in absolute terms) at 508 million
in CY 2022, ranking only below China. Indian Urban system constitutes ~11% of the total global Urban
population. However, only ~36% of India’s population is classified as Urban, compared to a global average of
~57%. It is the pace of India's Urbanization that is a key trend fueling India's economic growth. Currently, the
Urban population contributes 63% to India's GDP. Looking ahead, it is estimated that 37% (537 million) of India’s
population will be living in Urban centers by CY 2025 and is expected to account for 75% of India's GDP in FY
2026. This trend is expected to continue, with approximately 41% of India’s population living in Urban centers
by CY 2030.

Exhibit 1.15: Increasing Urbanization in India (CY)

Urban Population (% of total)

50.0%
35.5% 35.8% 37.0% 40.9%
30.9% 32.8% 33.6% 34% 34.5% 35% 35.0%
27.7%

2000 2010 2015 2017 2018 2019 2020 2021 2022 2023 2025P 2030P 2050P
11

Urban Population (Mn)

601
498 508 519
465 476 487
433 444 455
383
293
222
160
79 110

1960 1970 1980 1990 2000 2010 2015 2016 2017 2018 2019 2020 2021 2022 2025P 2030P

Source: World Bank, Technopak Analysis

Note: CY 2015 for India refers to FY 2016 data and so on.

Exhibit 1.16: Urban Population as Percentage of Total Population of Key Economies (CY 2023)

Country World India China USA Singapore Russia Malaysia Vietnam UK

Urban Population Share 58% 36% 64% 83% 100% 75% 78% 40% 84%
Source: World Bank

4. Growing Middle Class

The increase in number of households with annual earnings ranging from USD 10,000 to USD 50,000 is poised
to drive the Indian economy by fostering demand for a wide array of goods, improved services, housing,
healthcare, education, and more. Households with an annual income between USD 10,000 and USD 50,000
constituted a minor portion, accounting for 5.8% of the total population in FY 2010. This share increased to
30.6% in FY 2020 and is expected to continue in the same vein, rising to 42% of the total population by FY 2030.
The expanding middle-class sector in India is accompanied by a growing appetite for premiumization across
various sectors, including goods and services, construction, housing services, financial services,
telecommunications, and retail.

Exhibit 1.17: Household Annual Earning Details

HHs with Annual HHs with Annual HHs with Annual HHs with Annual
Total House
Year earnings less earnings of USD earnings of USD earnings greater
Holds (in Mn.)
than USD 5000 5,000 - 10,000 10,000 –50,000 than USD 50,000
2009 236 187.9 35.9 11.1 1.2
2010 240 181.8 42.9 14 1.2
2012 254 170.2 60.5 22.1 1.3
2014 267 167.1 70.8 27.2 1.9
2015 274 151 84.7 36.2 2.2
2018 295 84.1 121.5 86.4 3
2020 310 79.4 131.8 94.9 4
2030P 386 69.5 142.8 162.1 11.6
CAGR 2010-30P 2.4% -4.7% 6.2% 13.0% 12.0%
Source: EIU, *Technopak Estimates

5. Nuclearization

The growth in the number of households exceeds population growth, which indicates an increase in
nuclearization in India. The average household size has reduced from 5.3 in FY01 to 4.2 in FY 2021 and is further
projected to reduce to 3.9 by FY 2030. 69% of households had less than five members in FY 2011 as compared
12

to 62% in FY 2001. It is expected that smaller households with higher disposable income will lead to a greater
expenditure in, among others, Jewellery, Fashion, Home & Living, Packaged Food and Food Services.

Exhibit 1.18: Total number of households in India (in Mn)

500 29.7% 29.2% 35.0%

27.8%
386 30.0%
400 24.4%
317 25.0%
19.2%
300 248 21.8% 20.0%
192
200 148 15.0%
119
10.0%
100
5.0%
0 0.0%
1981 1991 2001 2011 2021P 2030P

No. of Households Decadal Growth

Source: Census, Technopak Analysis

Note: Decadal growth for the period 2021P-2030P reflects a 9-year period.

Top 20% of Indian households account for ~50% of the total household consumption
Household consumption in India is skewed towards the Urban population. Socioeconomic classifications (“SEC”)
A, B and C1, which account for approximately 45.5% of the Urban population and approximately 12.3% of the
Rural population, commonly referred to as the “top 20%” of Indian households (by income).

Exhibit 1.19: SEC Break-up of Indian Households (in percentage) FY 2023

22.2
20.1
15.6
12.9 13.2 12.6 12.8
8.6 10.2 11.6 10.7 9.8 Urban
7.6 6.2
5.1 3.2 5.1 4.7
1.1 0.04 1.3 2.3 2.6 Rural
0.4

A1 A2 A3 B1 B2 C1 C2 D1 D2 E1 E2 E3

Source: RBI Data, Economic Survey, World Bank, EIU, IMF

Note: Socio-economic classification is a stratification of Indian households used by marketers to understand consumer worthiness and consumption lifestyle. It
is widely agreed that consumption behaviour in India is better predicted by SEC (socio-economic class) classification, which is based on the Education of the
chief earner and the number of “consumer durables” (from a predefined list)-owned by the family. The list has 11 items, ranging from ‘electricity connection’
and ‘agricultural land’ to cars and air conditioners

Share of Merchandise vs Services Retail

In FY 2023, India's private consumption accounted for 59.6% of the total GDP. Nearly 52% of total private
consumption was contributed by service industry sectors such as Healthcare, Travel, Hospitality, Food Services
etc. and the rest 48% was contributed by merchandise retail comprising, Food & Grocery (31.0%), Jewellery
(4.0%), Apparel & Accessories (4.0%), Consumer Durables (3.0%) etc.

Exhibit 1.20: Share of Merchandise and Services in Household Expenditure- India (FY 2023)

Share in Household
Broad Category Category Share of Wallet
Expenditure
Food and Grocery 31%
Merchandise
~48% Jewellery 4%
Retail
Apparel & Accessories 4%
13

Footwear 1%
Pharma & Wellness 1%
Consumer Durables & Information 3%
Technology
Home & Living 2%
Others Retail Categories 2%
Services ~52% Healthcare, Travel, Hospitality etc. 52%
Source: Technopak Analysis
14

2. Retail Market in India

Retail Market in India
The retail market in India was Valued at INR 54,48,100 Cr in FY 2019 and reached a Value of INR 59,71,700 Cr in
FY 2020, growing at a rate of 9.7% over this period. The Retail Market in India was Valued at INR 76,06,600 Cr in
FY2023 and is expected to grow at a CAGR of 10.5% to reach INR 1,13,39,900 Cr by FY 2027.

Exhibit 2.1: India’s Consumption Funnel in FY (in INR Cr)

Source: Technopak Analysis. 1US$ = INR 80

Retail Size – Overall & across Key Categories

In Fiscal 2023, India’s retail basket was ~48% of its private consumption and it is expected to maintain roughly
this share in private consumption for the next five years. The Apparel and Accessories market in India was
estimated at ~INR 5,47,600 Cr as of FY 2023 and was one of the largest segments of the Indian retail sector. The
share of Apparel & Accessories in overall retail is expected to further increase from 7.2% in FY 2023 to 9.4% in
FY 2027. Apparel and Accessories is also the fastest growing sector in the retail basket, growing at CAGR ~ 18.2%
from FY 2023 to FY 2027.

Exhibit 2.2: Share of various categories in the overall Indian Retail Basket in FY (in INR Cr)

CAGR CAGR
Type of
FY 2027 FY (FY 2023
Categorie Categories FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
(P) 2019- -FY
s
FY 2023 2027P)
Total Retail 49,17,00 54,48,10 59,71,70 57,75,70 67,51,70 76,06,60 1,13,39,9
8.7% 10.5%
(INR Cr) 0 0 0 0 0 0 00

Food and
65.8% 65.0% 64.7% 70.6% 67.6% 65.1% 59.4% 8.8% 8.0%
Need Grocery
based Pharmacy &
2.9% 2.9% 2.9% 3.1% 3.0% 3.0% 3.2% 9.6% 12.0%
Wellness

Apparel &
Apparel 7.4% 7.4% 7.5% 5.3% 6.1% 7.2% 9.4% 8.0% 18.2%
Accessories

Primary
Non-Food Non-Apparel
0.6% 0.6% 0.6% 0.4% 0.5% 0.6% 0.7% 8.7% 14.8%
Accessories*

Jewellery 7.3% 7.5% 7.5% 5.6% 6.6% 7.3% 8.7% 8.0% 15.5%
15

Consumer
6.2% 6.3% 6.4% 5.7% 6.3% 6.7% 7.8% 10.1% 15.0%
Electronics
Watches 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 6.5% 15.2%
Home &
4.3% 4.3% 4.3% 3.2% 3.7% 4.0% 4.6% 6.9% 14.2%
Living
Other
Non-Food Footwear 1.2% 1.2% 1.2% 0.8% 1.0% 1.0% 1.3% 3.8% 18.1%
Others 4.2% 4.7% 4.7% 5.1% 5.0% 4.9% 4.7% 10.1% 9.0%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
*Non-Apparel Accessories include Bags, Belts and Wallets; Others include Books & Stationery, Toys, Eyewear, Sports Goods, Alcoholic Beverages & Tobacco etc.
Source: Technopak analysis; Year Indicates FY. 1US$ = INR 80

Organized Retail penetration is expected to increase to ~22.9% by FY 2027

Organized retail is referred to as corporate-backed retail chain stores, which include supermarkets,
hypermarkets and privately owned large retail businesses. It offers the consumers more choices and comfort to
browse and shop at their convenience. Organized retail chains have improved infrastructure, have large spaces,
and attractive layouts and offer a wide range of product assortments. They sell branded products that are being
marketed by specific brands under their name with the logo or getting their private label manufactured and sold
as their brand.

While organized retail, primarily brick & mortar, has been in India for 2 decades now, its contribution to total
retail was low at 10.1% (INR 4,95,100 Cr) in FY 2018 and 15.8% (INR 12,03,300 Cr) in FY 2023. The organized
retail penetration is expected to increase to ~22.9% by FY 2027.

Exhibit 2.3: Overall Retail Market in FY (INR Cr)

10.1% 10.5% 12.2% 12.0% 12.9% 15.8% 22.9%

26,02,200

12,03,300

8,73,500
7,28,300 6,93,700
5,73,000
4,95,100

49,17,000 54,48,100 59,71,700 57,75,700 67,51,700 76,06,600 1,13,39,900

2018 2019 2020 2021 2022 2023 2027

Overall Retail Organized Retail Organized Retail Penetration
Source: Technopak Analysis

Consumption of Retail basket across key Categories

 16

Apparel & Apparel Accessories, Jewellery and Consumer Electronics are the three key categories that
accounted for 7.2%, 7.3% and 6.7% respectively in FY 2023. The share of Apparel & Apparel Accessories is
expected to reach 9.4% in FY 2027, and it is the fastest growing category growing at a CAGR of ~18.1% from
FY 2023 to FY 2027. Non-Apparel Accessories are expected to grow at a CAGR of 14.8% at the same time,
followed by Footwear at a CAGR of 17.4%.

It is estimated that the share of e-commerce retail in the Apparel and Apparel Accessories segment will
reach 24.0% of the market in FY 2027 from 20.5% in FY 2023.

Exhibit 2.4: Share of Brick & Mortar and E-commerce across Categories in FY (All Value in INR Cr)

2018 2019
Share of Share of Share of Share of
Share of organized Share of organized
Retail Size organized Retail Size organized
Unorganized B&M Unorganized B&M
(INR Cr) E- (INR Cr) E-
retail retail
Retail commerce Retail commerce

Food and Grocery 32,27,600 96.6% 3.2% 0.2% 35,37,800 96.3% 3.4% 0.3%
Apparel & Apparel
3,65,800 72.0% 15.0% 13.0% 4,01,600 70.5% 15.5% 14.0%
Accessories
Non-Apparel Accessories 27,600 72.0% 15.0% 13.0% 31,500 70.0% 44.0% 17.0%
Watches 10,800 45.0% 40.0% 15.0% 12,200 40.0% 27.0% 4.0%
Jewellery 3,56,000 70.5% 26.5% 3.0% 4,09,800 69.2% 27.1% 3.7%
Consumer Electronics 3,03,200 71.5% 3.5% 25.0% 3,45,000 70.5% 3.4% 26.1%
Home & Living 2,09,500 89.5% 3.5% 7.0% 2,32,500 88.5% 3.8% 7.7%
Pharmacy & Wellness 1,41,800 91.0% 6.0% 3.0% 1,57,200 88.5% 6.7% 4.8%
Footwear 58,700 73.0% 11.5% 15.5% 65,500 71.8% 12.2% 16.0%
Others 2,16,000 87.5% 9.5% 2.5% 2,55,000 87.3% 9.8% 2.9%
Total Retail 49,17,000 89.9% 6.4% 3.7% 54,48,100 89.4% 6.6% 4.0%

2020 2021
Share of Share of Share of Share of
Share of organized Share of organized
Retail Size organized Retail Size organized
Unorganized B&M Unorganized B&M
(INR Cr) E- (INR Cr) E-
retail retail
Retail commerce Retail commerce

Food and Grocery 38,62,500 95.0% 4.4% 0.5% 40,77,700 94.4% 4.3% 1.3%
Apparel & Apparel
4,47,800 68.0% 14.5% 17.5% 3,06,300 65.0% 7.1% 27.9%
Accessories
Non-Apparel Accessories 34,700 68.0% 14.5% 17.5% 23,700 65.0% 7.0% 28.0%
Watches 13,500 35.0% 46.8% 18.2% 9,400 33.0% 47.0% 20.0%
Jewellery 4,50,800 68.0% 29.7% 2.3% 3,24,100 65.0% 28.5% 6.5%

Consumer Electronics 3,83,600 68.0% 5.0% 27.0% 3,29,300 64.0% 4.0% 32.0%
Home & Living 2,54,600 85.0% 7.0% 8.0% 1,82,100 78.0% 5.5% 16.5%
Pharmacy & Wellness 1,72,500 89.3% 8.5% 2.2% 1,81,100 88.7% 8.0% 3.1%
Footwear 72,000 70.0% 14.0% 16.0% 48,000 67.0% 13.0% 20.0%
Others 2,79,200 90.0% 5.0% 5.0% 2,93,200 88.0% 5.0% 7.0%
Total Retail 59,71,700 87.8% 7.7% 4.5% 57,75,700 88.0% 6.1% 5.9%

2022 2023
 17

Share of Share of Share of Share of

Share of organized Share of organized
Retail Size organized Retail Size organized
Unorganized B&M Unorganized B&M
(INR Cr) E- (INR Cr) E-
retail retail
Retail commerce Retail commerce

Food and Grocery 45,67,100 94.5% 4.0% 1.5% 49,55,300 92.5% 5.2% 2.3%
Apparel & Apparel
4,11,800 65.0% 13.0% 22.0% 5,47,600 62.0% 17.5% 20.5%
Accessories
Non-Apparel Accessories 31,900 65.0% 13.0% 22.0% 42,400 62.0% 17.5% 20.5%
Watches 12,600 34.0% 45.5% 20.5% 15,800 32.0% 47.5% 20.5%
Jewellery 4,46,200 66.0% 28.1% 5.9% 5,57,700 64.0% 30.0% 6.0%
Consumer Electronics 4,22,700 65.0% 7.5% 27.5% 5,07,200 62.0% 8.0% 30.0%
Home & Living 2,52,700 78.0% 7.8% 14.3% 3,03,200 75.0% 9.0% 16.0%
Pharmacy & Wellness 2,02,900 85.0% 11.0% 4.0% 2,27,200 82.0% 13.0% 5.0%
Footwear 64,800 66.0% 15.5% 18.5% 76,100 65.0% 15.0% 20.0%
Others 3,40,100 85.0% 7.0% 8.0% 3,74,100 84.0% 7.0% 9.0%
Total Retail 67,51,700 87.1% 7.1% 5.8% 76,06,600 84.2% 8.8% 7.0%

2027P
Share of Share of
Share of organized
Retail Size organized
Unorganized B&M
(INR Cr) E-
retail
Retail commerce

Food and Grocery 67,41,200 88.5% 6.6% 4.9%

Apparel & Apparel
10,68,300 52.0% 24.0% 24.0%
Accessories
Non-Apparel Accessories 80,600 52.0% 23.7% 24.3%
Watches 27,800 28.0% 48.0% 24.0%
Jewellery 9,91,500 58.0% 32.8% 9.2%
Consumer Electronics 8,86,700 52.0% 13.0% 35.0%
Home & Living 5,16,200 68.0% 10.9% 21.1%
Pharmacy & Wellness 3,57,500 77.5% 13.3% 9.2%
Footwear 1,48,100 58.0% 19.0% 23.0%
Others 5,28,100 80.0% 8.0% 12.0%
Total Retail 1,13,39,900 77.1% 11.9% 11.0%

*Non-Apparel Accessories include Bags, Belts, and Wallets. Source: Technopak Analysis. 1US$ = INR 80

Overall, the e-commerce market in India has witnessed accelerated growth and is expected to reach 11.03%
(INR 12,50,500 Cr) of the total retail market by FY 2027 from its share of 7.02% in FY 2023 (INR 5,33,700 Cr) at a
CAGR of 23.7%

Evolution of Organized Apparel Retail Segment in India

Organized retail’s share of Apparel has increased from ~14% in FY 2007 to ~38% in FY 2023. In other words, in
the last sixteen years, organized retail not only captured the new incremental demand, but it has also succeeded
in shifting the demand away from unorganized Apparel retail in its favour. Given the fact that organized retail
sells branded Apparel*, the growth of organized retail is poised to be a key growth enabler for the growth of
branded Apparel. The share of organized Apparel is expected to increase further to ~48% by FY 2027 and that
will continue to support the growth of branded Apparel as well.
18

(*Note: Branded Apparel refers to clothing that is being sold under a specific brand name throughout locations and it has that brand name
or logo on it to create awareness about the brand and is not sold under the shop name or the product name.)

Phase I (Pre 1995) – Till 1995, organized retail for Apparel was synonymous with Exclusive Brand Outlets (EBOs)
of a handful of Apparel brands. These EBOs were restricted by their physical reach (number of stores and
coverage across cities) and product offering (fabrics, suits, formal dressing etc.). Brands like Van Heusen, Arrow,
Raymond, Vimal, and Bombay Dyeing signified organized Apparel retailing.

Phase II (1995 – 2000) – Shoppers Stop started the first large format multi-brand outlet in the mid-nineties
triggering the expansion of multi-brand retail for Apparel and other retailing categories. Around the same time,
Westside and Lifestyle also started their private brand led large format stores. This period also saw the entry of
Benetton into India. These developments expanded the product offerings for the consumers and aspects around
product design, sourcing and supply chain became key focus areas for organized retailers. This period also
marked the entry of global sportswear brands like Nike which introduced the Indian market to Athleisure as an
extension of Footwear.

Phase III (2001 – 2015)– This phase was marked by the introduction of the Value retail segment through the
launch of various key players like V Mart, Style Baazar, V2 Retail, Max Fashion etc. These players addressed
various supply side gaps like limited product offerings due to supply chain bottlenecks, poor shopping experience
like lack of trial rooms, air conditioning etc. and lack of sufficient product information like price tags, bar coding
etc. and provided customers with a good shopping experience, customer service and quality products; hence
converting customers going to unorganized channels to shop in Value formats, thereby leading to the growth of
organized market. Also, this phase saw the bifurcation of Apparel retailing into specialized groups viz. Indian,
Casual, Sportswear, Daily wear, Denimwear etc. Further, there was an increase in competitive intensity seeing
the market potential, with the entry of more Value players. For instance, the launch of Value fashion brands like
M Baazar, 1 Indian Family Mart etc.

Western wear brands like Zara and Marks & Spencer entered India during the same period. This period also
witnessed the emergence of a brand aggregator model for international brands in India with players like Arvind
Brands and Reliance Brands becoming major Indian partners for many international Apparel fashion brands. This
phase also witnessed rapid growth of E-commerce. Online channel emerged as a key organized retail channel
for Apparel in India with the scale up of players like Myntra+Flipkart and Amazon. Online and offline channels
proved to co-exist and jointly grew the organized retail pie. Product differentiation of organized Apparel retailers
also became sharper on price points (Value fashion, mid to premium and premium plus offering) and on product
attributes (fusion, prints, fabric, look).

Phase IV (2016 onwards) – The current phase represents a distinct segmentation of channels of organized retail
for Apparel. This phase also represents the emergence of category leaders in respective groups of Western
(formal and casual), Indian, and Athleisure etc. Value fashion retailers such as Max Fashion, V Mart and Style
Baazar are working towards bridging the price gap in the branded Apparel market by offering quality products
at affordable prices. Exclusive Brands Outlets (EBOs) have emerged as a core channel for most national Apparel
retailers irrespective of the category (type of Apparel sold) or fashion (Indian or Western) play. LFSs have also
grown their footprints with the expansion of Central, Brand Factory, Shoppers Stop, Reliance Trends, Westside,
Decathlon and Pantaloons in towns beyond Metros and Tier 1 cities and are important growth drivers for
organized Apparel retailing.

Emergence of E-commerce in Retail

E-tail in India has witnessed a rapid growth trajectory and is expected to reach ~11% (INR 12,51,200 Cr) of total
retail by FY 2027 from its share of 7% in FY 2023 (INR 5,33,700 Cr) growing at a CAGR of ~23.7%. What started
in the early 2010s and was limited to categories of Electronics, Books, Stationery, and Music has now expanded
to almost all retail categories, with Apparel and Apparel Accessories having the 2nd highest share of e-commerce
among all categories at 20.5% for FY 2023. It follows the category of Consumer Electronics at 30% e-commerce
share for FY 2023.

Exhibit 2.5: Growth of E-retail in India in FY 2018, FY 2019, FY 2020, FY 2021, FY 2022, FY 2023, FY 2027P (in INR
Cr)
19

12,51,200

23.7% 5,33,700
36% 3,93,500
-53% 25% 16% 3,39,000
82% 2,71,200
2,21,300 ~35.6%
1,79,600
~25.0% ~16.1%
~22.5%
~23.2%

2018 2019 2020 2021 2022 2023 2027

Source: Technopak Analysis
20

3. Apparel and Footwear Market in India

3.1 India Apparel Market Size & Level of Organization
The Apparel market in India was Valued at INR 5,47,628 Cr in FY 2023 and is expected to grow at a CAGR of
~18.2% between FY 2023 and FY 2027 to reach INR 10,68,250 Cr by FY 2027 on the back of factors like higher
brand consciousness, greater purchasing power and increasing Urbanization.

Exhibit 3.1: Apparel Market Size in India (in INR Cr) (Year in FY)

10,68,250

11.4%
5,47,628
4,47,750 4,11,750
4,02,000
3,65,832
3,06,261

FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 27P
Source: Technopak Analysis. Note: Year indicates FY; Excludes Accessories (Bags, Belts, Wallets etc.)

Value Apparel which constitutes Mass and Economy products contributed ~60% of the total Apparel market in
FY 2022 and ~58% of the total Apparel market in FY 2023.

Exhibit 3.2: Apparel Market Size as per pricing in India (in INR Cr) (Year in FY)

INR 10,68,250 Cr

INR 5,47,628 Cr
INR 4,47,750 Cr
INR 4,01,969 Cr INR 4,11,750 Cr
INR 3,65,803 Cr
INR 3,06,261 Cr
5,34,125
3,17,624
2,47,050

2,08,524 2,29,120 2,55,218 1,83,757

FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 27P
Premium+ 10,973 12,058 13,433 6,125 8,235 10,953 37,389
Premium 43,892 48,231 53,730 33,689 45,293 65,715 1,60,238
Mid-premium 1,02,414 1,12,540 1,25,370 82,690 1,11,173 1,53,336 3,36,499
Economy 1,06,091 1,16,580 1,34,325 94,941 1,27,643 1,64,288 2,77,745
Value

Mass 1,02,433 1,12,560 1,20,893 88,816 1,19,408 1,53,336 2,56,380

CAGR FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-27P

Mass 9.9% 7.4% -26.5% 34.4% 28.4% 13.7%
Economy 9.9% 15.2% -29.3% 34.4% 28.7% 14.0%
Mid Premium 9.9% 11.4% -34.0% 34.4% 37.9% 21.7%
21

Premium 9.9% 11.4% -37.3% 34.4% 45.1% 25.0%

Premium+ 9.9% 11.4% -54.4% 34.4% 33.0% 35.9%
Source: Technopak Analysis

Exhibit 3.3: Total lifestyle market size (in INR Cr)

Categories FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY2027P

Apparel & Apparel Accessories 3,65,832 4,02,000 4,48,000 3,06,261 4,11,750 5,47,628 10,68,250
Non-Apparel Accessories NA NA 34,400 23,713 32,000 42,400 80,800
Footwear 58,683 65,455 72,000 48,000 64,800 76,111 1,48,120
Source: Technopak Analysis. Non- Apparel Accessories include belts, wallets, and watches.

While the CAGR of the total Apparel market between FY 2023 and FY 2027 is projected to be 18.2%, the branded
Apparel and organized Apparel retail are expected to grow at CAGR of 23.2% and 25.3% respectively in the same
period, i.e., the growth of both branded Apparel and organized Apparel in Apparel category will outpace the
overall market growth.

Exhibit 3.4: Branded Apparel and Organized Apparel Retail as a share of Apparel Market (Year in FY)

INR 3,65,832 Cr INR 4,02,000 Cr INR 4,47,750 Cr INR 3,06,621 Cr INR 4,11,750 Cr INR 5,47,628 Cr INR 10,68,250 Cr

59%
45% 47% 48% 50% 48%
38% 43% 38%
30% 32% 35% 35%
28%

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)

Branded Apparel Organised Apparel
Source: Technopak Analysis
Branded Apparel signifies registered trademarks that are regularly patronized by customers and are sold through both organized retail and trade channels. Organized retail signifies
formal retail channels of Exclusive Brand Outlets (EBOs), Multi Brand Outlets (MBOs), Large Format Stores (LFS), E-commerce etc. Apparel retailed through these organized retail points
of sales is necessarily branded. Therefore, the organized share is less than the share of Branded Apparel in the total share of Apparel.

The share of organized retail in Apparel has witnessed a steady increase over the past years. The share of the
organized sector in Apparel was 28.0% in FY 2018 increased to 32.0% in FY 2020 and 38.0% in FY 2023 and is
projected to reach 48.0% by FY 2027.

Exhibit 3.5: Share of Organized and Unorganized Retail as a Percentage of Apparel Market (in INR Cr) – FY 2015,
2020, 2022, 2023, 2027P
22

INR 10,68,250 Cr

INR 5,47,628 Cr 52%

INR 4,02,000 Cr INR 4,47,750 Cr INR 4,11,750 Cr
INR 3,65,862 Cr INR 3,06,261 Cr 48%
67% 62% 62%
70% 68% 65% 65%
72%
38% 38%
28% 30% 33% 32% 35% 35%
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)
Unorganised Retail 2,63,399 2,81,400 3,04,470 1,99,070 2,67,638 3,39,529 5,55,490
Organised Retail 1,02,433 1,20,600 1,43,280 1,07,191 1,44,113 2,08,098 5,12,760
Source: Technopak Analysis

Product Segmentation
Men’s Apparel constituted ~41% and Women's Apparel share was estimated to be ~37% of the total Apparel
market in FY 2023. The balance of ~21% was contributed by kids’ Apparel. Out of the total Apparel market, Ethnic
wear accounted for ~30% or INR 1,62,898 Cr (FY 2023) and the balance ~70% of the market comprised western
wear at INR 3,84,730 Cr. The high share of Ethnic wear in the total Apparel is a unique feature of the Apparel
market in India. In the women's wear market, Ethnic wear contributed ~67% to the total market and is expected
to be the fastest growing segment in the Ethnic Apparel market. However, for men and kids, the contribution of
Western wear is significant.

Exhibit 3.6: Growth Projections of Total Apparel Market by Gender (in INR Cr)

INR 10,68,250 Cr

INR 5,47,628 Cr

INR 4,47,750 Cr
INR 4,11,750 Cr
INR 4,02,000 Cr INR 3,06,261 Cr
INR 3,65,862 Cr

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)

Kidswear 79,872 89,272 1,01,136 68,296 88,498 1,23,644 2,37,816
Womenwear 1,34,371 1,47,194 1,63,321 1,11,438 1,53,086 2,00,859 3,98,724
Menwear 1,51,588 1,65,534 1,83,293 1,26,527 1,70,166 2,23,125 4,31,710

Apparel Market Segmentation

Ethnic and Western Wear Market in India

23

The Apparel market comprised ~30% Ethnic wear in FY 2023 and ~70% Western wear at INR 1,62,898 Cr and INR
3,84,730 Cr in size respectively. This market is dominated by the unorganized sector which was~ 74% of the
Ethnic wear market and ~62% of the Western wear market for FY 2023.

In the men’s segment, Ethnic wear accounted for ~6% of the total menswear market of INR 2,23,125Cr for FY
2023, while in women, Ethnic wear held a significant share of ~67% of the total INR 2,00,859 Cr womenswear
market for FY 2023. This implies that women's Ethnic wear is the mainstay of Ethnic wear in India. The Men
Ethnic wear market is expected to reach INR 26,531 Cr by FY 2027, from INR 13,992Cr in FY 2023, growing at a
CAGR of 17.3%. The Women's Ethnic wear market is expected to reach INR 2,61,061 Cr in FY 2027, from INR
1,34,547Cr in FY 2023, growing at CAGR of 18.0%.

Western wear market accounted for close to ~70% of the overall Apparel market, with western wear market
size of INR 3,84,730Cr for FY 2023. The organized sector constituted a 36% share of the Western wear market,
while the unorganized sector was 64%. Western wear continues to dominate the Men’s wear market with a
~94% share for FY 2023. It is expected to grow at a CAGR of 18.0% from FY 2023 to FY 2027, reaching INR 4,05,179
Cr in FY 2027. The western wear market for women amounted to INR 66,312 Cr for FY 2023 and is expected to
grow at a CAGR of 20.0% to reach INR 1,37,663 Cr for FY 2027.

Exhibit 3.7: Ethnic wear vs Western wear market in India (Year in FY)

INR 10,68,250 Cr

70%
INR 5,47,628 Cr
INR 4,47,750 Cr
INR 4,02,000 Cr INR 4,11,750 Cr
INR 3,65,832 Cr INR 3,06,261 Cr
12.0%
69% 70%
68% 70%
68% 70% 30%
8.6% 10.0% 36.3%
32% 32% 31% 30%
30% 30%
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)
Western Wear 2,47,820 2,73,827 3,06,760 2,14,946 2,87,322 3,84,730 7,51,529
Ethnic Wear 1,18,011 1,28,173 1,40,990 91,315 1,24,428 1,62,898 3,16,721

Channel Wise Segmentation

Large Format Stores (LFS) are expected to grow at a CAGR of 29.4% between FY 2023 and FY 2027, which is
higher than expected growth from E-commerce and MBOs. The share of sales from EBOs in total organized
Apparel retail is expected to increase from ~22% in FY 2023 to ~25% in FY 2027. The share from LFS is expected
to increase from 16% to 18% during the same period. Online channel is expected to grow at a CAGR of 22.9%
between FY 2023 and FY 2027.

Exhibit 3.8: Organized Apparel Market Segmentation across Organized Retail Channels (in INR Cr) (Year in FY)
24

INR 1,02,433 Cr INR 1,43,280 Cr INR 1,44,113 Cr INR 5,12,760 Cr

Chart Title
INR 1,20,600 Cr INR 1,07,191 Cr INR 2,08,098 Cr

47% 21% 48% 51%

55% 55%
67% 63%

18% 19% 18%

17% 16%
8% 7% 14%
15% 7% 6%
7%
5%
4%
27% 26% 25%
22% 18% 22%
15%

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)

EBO MBO LFS E commerce

Source: Technopak Analysis

Exhibit 3.9: Channel wise – Segment-wise Market Size Across Men, Women & Kids (in INR Cr)- FY 2015, 2020,
2022, 2027P

INR 1,51,588 Cr INR 1,83,293 Cr

Chart Title INR 1,70,166 Cr INR 4,31,730 Cr
INR 1,65,434 Cr INR 1,26,527 Cr INR 2,23,125 Cr

8% 40%
-33% 55% 35% 34%
7% 1% 56% 55% 56%
63% 62%

28%
23%
15% 58% -12% 27% 9%
16% 23% 30% 28% 23%
15%
57% 32%
12% 3% -47% 47% 32%
21% 22% 20% 17% 20%
16%

Men FY18 Men FY19 Men FY20 Men FY21 Men FY22 Men FY23 Men FY27 (P)

Org B&M Org E-Com Unorg

 25

INR 1,34,347 Cr INR 1,63,321 Cr Chart Title INR 1,53,086 Cr INR 3,98,724 Cr
INR 1,47,094Cr INR 1,11,438 Cr INR 2,00,859 Cr

39% 11% 56%

10% -35% 69% 37% 69%
75% 7% 74% 73% 73%

32% 23%
17% 29% -8% 29% 19%
4%
12% 13% 15% 20% 15%
-1% 60% 37% 21%
13% 15% 13% 12% 41% 10% 12% 31% 12%

Women FY18 Women FY19 Women FY20 Women FY21 Women FY22 Women FY23 Women FY27 (P)

Org B&M Org E-Com Unorg

INR 79,872Cr INR 1,01,136 Cr Chart Title INR 88,498 Cr INR 2,37,816 Cr
INR 89,250 Cr INR 68,296 Cr INR 1,23,644 Cr

-34% 29% 44% 13% 69%

9% 81% 13% 81% 78% 78% 81%
83%

-11% 27% 8% 32%

33 5% 18%
10% 13% 12% 15% 15% 12%
33% -44% 42% 55% 34% 13%
7% 9% 7% 8% 6% 7% 8%
Kids FY18 Kids FY19 Kids FY20 Kids FY21 Kids FY22 Kids FY23 Kids FY27 (P)

Org B&M Org E-Com Unorg

Source: Technopak Analysis

The share of organized retail for women Apparel is expected to increase from ~27% in FY 2023 to ~44% in FY
2027. The organized market for men's and kids' Apparel is also expected to increase to ~60% and ~31%
respectively by FY 2027.

Apparel Market Segmentation across City Types

The Urban Apparel market had a share of ~61% of the total market compared with a share of ~39% contributed
by Rural India in FY 2023. Almost 21% of the Urban Apparel demand can be attributed to Delhi NCR and Mumbai
making these cities the largest consumers of Apparel in India. However, there has been distributive growth
across the country, with demand from Tier 2, 3 & 4 cities increasing significantly. These cities, which are Value
retail focused, currently account for 56% of the Urban Apparel market, and are expected to grow at a CAGR of
21.0% from FY 2023 to FY 2027.

Exhibit 3.10: Apparel Market Segmentation across City Types – FY 2023 – 2027 (in INR Cr): Urban
26

INR 3,31,835 Cr INR 6,57,000 Cr

38.0% 19.4% 39.0%

18.0% 18.6% 18.0%

23.4% 18.1% 23.0%

20.6% 20.0%
17.7%
2023 2027

Top 2 Cities (Delhi NCR, Mumbai) Tier 1 incl state capitals Tier 2 Tier 3 & 4

Source: Technopak Analysis

Note- % share of city types in the Urban market
Tier 1 Cities: All State Capitals & Metros
Tier 2 Cities: Cities with a Census Population >10 lacs & not Tier 1.
Tier 3 Cities: Towns with a Census Population >2 lacs or Towns with a Census Population between 1 & 2 lacs and District HQ
Tier 4 Cities: Towns with a Census Population between 1 & 2 lacs and Not District HQ or Towns with a Census Population <1 lacs

Key Growth Drivers of the Indian Apparel Sector

Value Fashion led growth

Going forward, Value fashion will continue to be the mainstay of growth of Apparel retailers and brands in both
Ethnic and Western wear segments. This growth can be attributed to the movement from unbranded to
branded; Ready to Stitch (RTS) to Ready to Wear (RTW); and migration from Rural to Urban centres. Value
fashion retailers such as Style Baazar, V2 Retail, V-Mart, Baazar Kolkata etc are bridging the price gap in the
branded Apparel market by offering quality products at affordable prices. This Value sensitivity has been
accelerated by COVID-19, leading to demand for core offerings in the Value segment. As a result of this growing
demand, Value fashion focussed brands, private brand led retailers, LFS and online aggregators will continue to
benefit.

Casualization of fashion and growth of Comfort wear

The casual wear market has evolved significantly over the years. Casual wear categories such as denim,
activewear, casual shirts, athleisure, loungewear, sleepwear, and fashionable skirts are outpacing the growth of
formal wear in India. This is reflective of the changing consumer trend and increasing usage of casual wear in
offices as well as at home. COVID-19 leading to work from home further boosted this category. This shift in
women’s wardrobe towards casual wear has acted as a growth driver for women’s western wear. The
casualization of fashion is not unique to India and is driven by global trends.
Consequently, a consumer’s fashion basket has expanded to include clothing like casual wear, athleisure,
loungewear, sports/gym wear, jackets, jeans etc. This benefits Value retailers like Style Baazar, V Mart etc. as
Value fashion plays cater to all category types, especially casual wear in the mass-mid price category.

Technology Intervention

In the Indian Apparel sector, technology deployment in manufacturing, sourcing, retailing, marketing and data
management is becoming the biggest value creator.
In-store Experience – Apparel players are implementing in-store technologies in congruence with the
growing number of tech-savvy, knowledgeable and demanding customers. Some of the technological
components being used are Augmented Reality (AR); Virtual Reality (VR); Video screens and kiosks for
27

in-store ordering and cross-selling by suggesting other products and categories to consumers to
‘complete the look’; Beacon tech/Apps; Checkout Free Scan & Go Services etc.

Customer Data Mining - Apart from generating valuable insights on consumer behaviour through
analysis of data collected, these technological experiences are engaging shoppers from product
discovery to product delivery. They assist customers at every stage of shopping.

New Technologies of the Future - The metaverse is becoming a part of the global fashion industry and
in coming years, is expected to become an important part of the Indian Apparel landscape as well. It
supplements physical Apparel and design through its virtual features like virtual catalogues and fashion
shows, which saves resources and gives more opportunities for creativity.

Omnichannel approach by brands

Brands are now focusing on an Omnichannel approach to provide a seamless experience to the consumers,
whereby consumers can interact and purchase from the brand through either channel. Players are taking
measures to ensure the same by digitally enabling all retail channels and focusing on online medium with links
to offline channels.

Digital enablement of all Retail Channels - Activating digitally enabled channels became even more
important during & post-Covid. Brands adopted digital channels faster than originally planned, and the
whole eco-system is leading towards digital enablement. Offline channels are also using digital in some
form for sales through social commerce with WhatsApp, mailings etc. Digitally enabled commerce will
become important and will subsume both brick retail and e-commerce. Therefore, activating these
channels and harnessing their potential will become important for the growth of the brand and the
sector. This also allows us to address dispersed demand and meet consumer needs across different
purchase drivers and purchase triggers.

Online Purchase of Apparel - Apparel is a category that requires size trials and touch-feel of the fabric
to assess and make a purchase decision. However, it saw an increase in e-commerce uptake during
Covid, which led to a change in consumer behaviour and there was increased adoption of online
channels for Apparel purchases too. Companies and consumers alike adapted to this change and there
was the use of various mediums like Apps, Websites, and social commerce channels like WhatsApp,
Video-shopping from home etc. Companies also accelerated their online adoption plans. The use of AI
and software that would enable consumers to see how they look in a garment has witnessed traction
enabling virtual try-ons etc.

Digital Marketing

The use of Digital media as a marketing tool is being adopted by all key players. Its wider reach and relatively
lower cost of customer conversion make it a medium of choice. The adoption of social media by youth has given
an opportunity to brands to reach consumers directly through targeted campaigns. The widespread adoption of
WhatsApp makes it a useful business tool. Brands & local businesses alike are using this medium to reach out to
consumers belonging to every age group.

Growth of Private Brands

Acceptance of private brands among multi-brand retailers is on the rise across product categories. Some reasons
that can be attributed to their growth are:
 Higher Margins: Due to low advertising and promotional costs, they offer higher margins.
 Customer Loyalty: Private brand buyers are more store loyal as the merchandise is generally sold only
in their respective Large Format Stores.
 Value Offerings: Private brand players generally operate in the Value-segment offering catering to a
larger customer base.
 Product Quality: Consumers perceive private labels to have a higher product quality compared to
unbranded products.
28

 Differentiation: Provide an opportunity for retailers to differentiate themselves from other stores.
 Higher Bargaining Power: A successful retailer with a high share of private brands gets higher
bargaining power to negotiate with suppliers.

V Mart, Style Baazar and other retailers that have achieved scale and profitability will naturally progress towards
building a private brand portfolio that will give incremental gross margin additions.

3.2 India Footwear Market Size & Level of Organization

The domestic Footwear retail market in India estimated at INR 76,111 Cr in FY 2023 is projected to grow at a
CAGR of 18.1% to reach INR 1,48,120 Cr by FY 2027. India is one of the largest producers and consumers
of Footwear in the world, generating employment for over 2 million people. Men’s Footwear currently
dominates this market with ~50% share, however growth in the women’s Footwear segment will outpace the
growth in men’s to account for an almost equal share by value in FY 2027 against the current share of ~41%.
While the unbranded segment accounted for ~52% of the total market in FY 2023, the branded segment
accounted for ~48%, and the share is expected to reach ~52% for branded and ~48% for unbranded segments
by FY 2027.

Further growth will be driven by

 Increased adoption of Footwear owing to versatility in usage and emergence of sub-segments such as
sports and athleisure, outdoor etc.

 Increasing middle-class population and working population resulting in increasing disposable income of
consumers and higher spending on lifestyle products; leading to a shift from unbranded to branded
play driving the average selling price of the segment.

 Increase in number of working women driving the growth of women’s Footwear market.

 Increasing Urbanization and more focus towards branded Footwear and organized retail.

 Easy availability and assortment width with the advent of online channels.

 Surge in sales of sports and athleisure Footwear with an increasing focus towards sports and events
such as marathons and adventure trips.

Exhibit 3.11: Footwear Retail Market in India (in INR Cr)

1,48,120

72,000 76,111
65,455 64,800
58,683
48,000

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)

Source: Technopak Analysis

Exhibit 3.12: Share of Branded Footwear and Organized Footwear Retail as a percentage of Footwear Retail
Market
29

INR 58,683 Cr INR 65,455 Cr INR 72,000 Cr INR 48,000 Cr INR 64,800 Cr INR 76,111 Cr INR 1,48,120 Cr
52%
52% 47% 48%
42% 43% 44% 42%
33% 34% 35%
27% 28% 30%

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)

Branded Footwear Organised Footwear
Source: Technopak Analysis
Branded Footwear signifies registered trademarks that are regularly patronized by customers and that are sold through both organized retail and trade channels.
Organized retail signifies formal retail channels of Exclusive Brand Outlets (EBOs), Large Format Stores (LFS), E-commerce etc. Footwear retailed through these
organized retail points of sale is necessarily branded. Therefore, the organized share is less than the share of branded Footwear in total share.

In FY 2023, the organized Footwear retail signified by exclusive brand outlets (EBOs), large format stores (LFS)
and e-commerce contributed a share of ~34% by Value to the total Footwear retail market, corroborating the
greater throughput of premium products through organized channels. Growing at a rate of 23.6%, well above
the growth rate of the overall category, organized retail is expected to gain a share of ~42% by value in the
coming four years. The Footwear segment is characterized by higher branded play compared to other lifestyle
categories. The branded segment, projected to grow at a rate of 20.5% by value in the coming 4 years, is
expected to exceed the share of the unbranded segment by FY 2027.

Segmentation by Customer Type

Women’s Footwear segment will outpace the growth in men’s to account for an almost equal share by value in
FY 2027 i.e., INR 65,172 Cr, against the current share of ~41% i.e., INR 31,205 Cr. Share of Kids segment will also
rise from the current ~11% to reach ~12% by FY 2027, amounting to INR 17,774 Cr.

Exhibit 3.13: Customer Segment Split in Footwear Retail Market

INR 58,683 Cr INR 65,455 Cr INR 72,000 Cr INR 48,000 Cr INR 64,800 Cr INR 76,111 Cr INR 1,48,120 Cr
20.7%
10% 10% 11% 11% 12%

39% 40% 40% 38% 40% 41% 44%

15.6%
52% 51% 50% 52% 50% 48% 44%

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)

Men Women Kids
Source: Technopak Analysis

Segmentation by Usage

Indian Footwear retail market is defined through various segments like - formal, casual, sports & athleisure and
outdoor segments. While the casual segment is the largest segment, which accounted for ~66% of the total
market in FY 2023, sports and athleisure was the fastest growing segment gradually consolidating market share.
Health, fitness, and well-being have become an important pivot for most retail categories including Food and
Grocery, Apparel and Accessories, Footwear, Gadgets etc. Footwear is mirroring that trend, with Sports and
30

Athleisure Footwear expected to more than double itself in value from INR 14,842 Cr in FY 2023 to reach a
market size of INR 32,586 Cr by FY 2027, growing at a CAGR of 21.7% between FY 2023 and FY 2027.

Exhibit 3.14: Usage-wise Split in Indian Footwear Retail Market

INR 58,683 Cr INR 65,455 Cr INR 72,000 Cr INR 48,000 Cr INR 64,800 Cr INR 76,111 Cr INR 1,48,120 Cr
7.8% -50.0% 44.0% 32.1% 26.9%
6% 5% 5% 4% 24.1%
4% 5% 6%
10% 9% 30.5% 10% 18.1%
13% 13% 6.7% 13% 10%
19% 19% 21.7%
14% 14% 15% 20% 22%

35.6% 14.0%
68% 67% 67% 68% 68% 66% 62%

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)

Casual Sports & Athleisure Formal Outdoor
Source: Technopak Analysis

Retail Channels

The Footwear retail market is amongst the most organized categories with a ~35% penetration of organized
retailing (FY 2023). Organized retail is largely characterised by the EBOs of the leading brands along with LFSs,
Value players and other large MBOs. E-commerce has rapidly gained a foothold in the market and is now driving
the growth of organized Footwear retail. Growth in the organized format will also be driven by the emergence
of Value brands and increasing penetration of EBOs in Tier 2, Tier 3 and below towns across the country.

However, the unorganized retail channels continue to be the cornerstones of the demand. Distribution led
brands, regional labels and unbranded products continue to depend on the deeply entrenched unorganised
multi-brand stores.

 Key players like Bata, Khadim, Sree Leathers, Relaxo, Liberty, Adidas, Reebok, Puma, Nike etc. primarily
operate through EBOs.
 LFSs include department stores like Shoppers Stop, Lifestyle, Central, Pantaloons etc. and hypermarkets
such as Big Bazaar, Spencer’s etc.
 Large format Value stores include V Mart, Style Baazar, V2 Retail etc.
 MBOs include retailers like Metro, Mochi, Regal, Inc. 5, Planet Sports etc. selling multiple brands which
i.e. their own [private labels / brands] as well as products of brands like Skechers, Puma etc.
 Unorganised includes typical Mom and Pop Footwear stores.

Exhibit 3.15: Key Footwear Retail Channels

31

INR 58,683 Cr INR 65,455 Cr INR 72,000 Cr INR 48,000 Cr INR 64,800 Cr INR 76,111 Cr INR 1,48,120 Cr

8.1% -36.2% 31.0% 17.5% 14.8%

9.6% 58%
73% 71% 70% 67% 65% 65%

-16.7% 28.3% 23.6% 22.3%

30.1% 25.7% 23%
12% 14% 16% 20% 19% 20%
4.4% -38.3% 66.2% 10.1% 25.3%
16% 6.1% 16% 15% 19%
15% 14% 13%
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)
B&M Organised E-commerce Unorganised

Source: Technopak Analysis

Since the omni channel and direct consumer connect are driving the expansion strategy of the retail industry,
several Footwear brands are now focusing on D2C expansion through EBOs (Exclusive Brand Outlets) and are
launching their own brand websites. EBOs not only allow brands to directly connect with their customers and
offer variety and experience, but also facilitate omnichannel retail.

Geographical Segmentation

Given the largely discretionary nature of the category, Urban India accounted for ~68% of the Footwear market
in India by value (FY 2023). The top 8 cities (metro and mini metro cities) contribute to ~40% of the Urban
Footwear market and are dominated by the presence of leading national and international brands. Tier 2 and
below cities contribute ~35% to the overall Urban Footwear market and it is expected to grow further with
increasing penetration of retailers and online retail in these cities. Tier 1, Tier 2 and below cities are poised for
growth thereby opening up new opportunities for retailers to expand.

Exhibit 3.16: Urban-Rural distribution of Footwear Retail in India

Total Footwear Market (FY2023): INR 76,111 Cr Total Footwear Market (FY2027P): INR 1,48,120 Cr

32% 30%

68%
70%

Rural Urban Rural Urban

Source: Technopak Analysis

Exhibit 3.17: Tier-wise Distribution of Footwear Retail in Urban India

32

INR 76,111 Cr INR 1,48,120 Cr

16.2% 30%
32%

18.1% 11%
11%
13% 20.3% 14%

17% 19.8% 18%

18.1%
27% 27%

FY 2023 FY 2027P
Metro/Mini Metro Tier 1 Tier 2 Tier 3 and Tier 4 Rural India

Source: Technopak Analysis

Value Segmentation

Exhibit 3.18: Value Segmentation in the Indian Footwear Retail Market

INR 58,683 Cr INR 65,455 Cr INR 72,000 Cr INR 48,000 Cr INR 64,800 Cr INR 76,111 Cr INR 1,48,120 Cr

5% 5% 6% 5% 5% 5% 8%
4% 5% 5% 5% 6% 6%
5% 5% 5% 5% 5% 5% 6%
6%
16% 9.8%
16% 15% 16% 16% 16%
17%
13.8%
15% 15% 15% 16% 16% 16%
16%

56% 55% 54% 53% 47% 52% 47%

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027 (P)

Mass Economy Mid Mid Premium Premium Premium Plus

Source: Technopak Analysis

Mass (<₹ 500), Economy (₹ 501 - ₹ 1,000), Mid (₹ 1,001 – 1,500), Mid Premium (1,501 - 2,000), Premium (2,001-3,000), Premium Plus (₹ 3,000+)

The premium and premium plus segments is marked by international brands such as Aldo, Charles & Keith,
Kenneth Cole, Clarks, Adidas, Puma, Nike etc. that are currently focusing on Indian metro-centric centers. The
segments are signified primarily by the Exclusive Branded Outlet format. The economy, mid and mid-premium
segments are marked by brands such as Khadim, Bata, Metro, Woodland, and Lotto with a share of ~37%,
adopting a mixed retail approach of EBOs, LFSs, e-commerce and distribution led coverage. This also includes
private label Footwear brands of players such as Style Baazar, Baazar Kolkata, V2 Retail etc. Mass Footwear
brand retailers such as VKC, Lakhani Shoes, Relaxo, Ajanta Footwear, Lancer etc., which occupy ~52% of the
market, are characterized by a predominant distribution led channel. The mass and economy segments are
expected to grow at a CAGR of 15.2% and 18.1% respectively in FY 2023-2027P.
33

Growth Drivers of the Footwear Industry

Growing niches and sub-segments for different occasions

The per capita consumption in terms of the number of pairs of Footwear owned has increased, especially in
Urban areas, as consumers prefer several pairs of Footwear to match different occasions and outfits. Casuals
and flats are preferred for daily wear as they are comfortable while travelling and commuting. Officegoers opt
for formal shoes for work and sometimes casuals while commuting. Dress Footwear are preferred by women
outdoor meets or parties. Sports and athleisure Footwear are in demand for consumers striving for an active
lifestyle. While many brands like Bata have a comprehensive offering for all usages, brands like Adidas, Reebok,
Puma, Nike etc. are pivoted primarily around sports and athleisure.

Footwear evolved from a utility product to a fashion statement

Footwear has evolved from just being a necessity as cover and protection for the feet to an important part of
the fashion outfit. Along with Clothing, Footwear & Accessories have become integral to putting together a
complete look. This trend in turn is continuously driving growth in volumes. Its usage as a fashion statement also
means that customers have a greater number of pairs, which go along with various outfits and occasions. Value
players tend to gain from this trend as their target consumers would purchase a higher number of pairs in the
mass/value range as they would prefer to change/ update Footwear as per trends.

Formal vs Casual and Open vs Closed Footwear

Covid has changed consumer buying patterns across segments, from FMCG, Personal Care, Apparel, or
Footwear. With focus on health and fitness, the demand for sports and athleisure Footwear has grown. Running
shoes have emerged as a top searched item under the sports Footwear category on various online marketplaces.
Additionally, running and walking shoes have witnessed growth, pointing towards a shift from formal to casual
and sports Footwear. Open Footwear continues to dominate women's casual and dress Footwear with a limited
share in the Men’s and kids’ category.

High growth in sports and athleisure Footwear

 Health and Fitness: Increasing health and fitness awareness, developing sports and outdoor
infrastructure, and heightened influence of sports personalities and sports events is creating higher
demand for sports and athleisure Footwear. This is the fastest growing segment among Footwear.
Consumers are increasingly adopting an active lifestyle by participating and engaging in activities such
as running, trekking, at-home workouts, working out in the gym, yoga and sports such as tennis, cricket,
badminton, basketball, and football. This has led to a rise in the demand for activity-specific Sports
Footwear. Sports as a habit is increasing across demographics of gender and age thereby broad basing
the target customer.

 Casual Comfort: Consumers are increasingly preferring sports and athleisure Footwear for long-
distance travelling and vacation. Medical professionals and gym coaches frequently advise its usage for
daily wear for better foot coverage and support.

 Fashion: Sports Footwear is now being used as a fashion element of an outfit as well, influenced by the
rampant comfortable and casual dressing culture. The ‘sports look’ is now being sported by celebrities
and influencers not only during travelling and workouts but also for public events and appearances. It
has become a mainstream fashion category so much so that casual wear brands across premium and
luxury segments like Zara, H&M, and Ralph Lauren have introduced product lines related to sports and
athleisure.

Women Footwear segment to rise with rise in women workforce

34

With an increase in the women's workforce, the demand for women’s Footwear has grown tremendously on
account of growth in household incomes and the emergence of varied occasions. The share of women’s
Footwear has risen from ~37% in FY 2015 to ~41% in FY 2023 and is projected to account for ~44% of the total
Footwear market in FY 2027. The Women’s Footwear segment necessitates having more variety and styles as
compared with men’s Footwear. In India, women tend to place greater emphasis on fashion than men and
consequently purchase Footwear more frequently as compared to men.

High growth in the kids’ segment

As household incomes have risen, expenditure on kids’ products has also witnessed a growth. Kids Footwear is
expected to grow at a rate of 20.7% in the coming 4 years from FY 2023 to FY 2027, well above the growth of
the overall Footwear market.

E-commerce significant to the growth of organized

From an ~12% market share in FY 2018 to a share of ~20% in FY 2023, E-commerce in Footwear is expected to
account for ~23% of total Footwear retail by FY 2027. Vertical and horizontal marketplaces like Myntra, Ajio and
Flipkart have become an alternative platform for both retail and distribution led brands. Along with this,
marketplaces have also provided access to markets for smaller labels and brands. Many digital-first brands and
private labels like HRX have evolved through these platforms, thereby multiplying the throughput. Offline-first
brands are also now selling additionally on online platforms which is adding to this share.

Branded play and organized retail propelled on the back of Urbanisation

The share of the Urban population has increased from 34.0% in FY 2018 to 35.8% in FY 2023 and is expected to
increase further to 50% by CY 2050. The rise in Urbanization has facilitated, boosted, and aggregated demand
for organized retailing and the sale of branded products in India. Increased Urbanization has led to higher
customer density areas thus enabling retailers to use a lesser number of stores to target a given number of
customers.

Entry of international brands in India

Brands such as Steven Madden, Adidas, Reebok, Puma, Hush Puppies, Crocs, Sketchers, Aldo, New Balance,
Charles and Keith, and Asics have established a foothold in the Indian Footwear industry.

Ability of home-gown brands to address the unaddressed demand

The ability of home-grown brands like Relaxo, or home-grown private labels of players like Style Baazar, V Mart,
V2 Retail etc. to address demand across price segments based on market knowledge, supply chain efficiencies,
access to markets, regional understanding and price advantage presents a large sized opportunity to them.
Reviewing the product strategy and recalibrating the prices can help the Value players meet the demand at the
right price. Homegrown brands are uniquely placed in the Indian Footwear industry considering their market
knowledge, product offerings, mid to premium pricing and distribution mix along with D2C/ online presence to
benefit from the industry trends like increasing focus on fitness and health, brand consciousness, rise of e-
commerce etc.
35

4. Home & Living Market

4.1 Home & Living Market

The Indian Home & Living market was valued at INR 3,03,200 Cr. in FY 2023. The market has grown with a CAGR
of 10.3% from FY 2018 to FY 2020 and is expected to grow at a CAGR of 14.2% to reach INR 5,16,200 Cr. by FY
2027.

Exhibit 4.1: Indian Home & Living Market (INR Cr.)

-0.4%

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027P

Home & Living Market 2,09,460 2,32,500 2,54,600 1,82,065 2,52,700 3,03,200 5,16,200

Sources: Technopak Analysis

Exhibit 4.2: Channel Wise Contribution - Home & Living Market (INR Cr.)

2,09,460 2,32,500 2,54,600 1,82,065 2,52,700 3,03,200 5,16,200

1,09,150

56,034
17.9% 32.9% 34.7%
20,368 36,000 48,485
18,000 4.9% 39.4% 27,315
14,662 55.9% 17,822
7,331 8,738 19,594 11.5%
30,000 3,51,016
7.4% -4.6% 10,054 15.4%
2,05,763 2,16,410 1,97,106 2,27,400
1,87,467
1,42,011

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027P

Traditional Org. B&M E-Commerce

CAGR FY 2018-2020 FY 2020-2022 FY 2022-2023 FY 2023-2027P

Unorganised 7.4% -4.6% 15.4% 11.5%

Org. B&M 55.9% 4.9% 39.4% 19.7%

E-Commerce 17.9% 32.9% 34.7% 22.5%

Sources: Technopak Analysis

36

4.2 Key Growth Drivers for Home & Living Market

 Increasing Urbanization

India now has the largest population in the world at 1.417 Bn for CY 2023, compared to 1.412 Bn for China.
However, only 35% of India's population is classified as Urban compared to a global average of ~57%. It is the pace
of India's Urbanization that is a key trend to note for implication on India's economic growth. Currently, the Urban
population contributes 63% of India's GDP. Going forward, it is estimated that 37% of India’s population will be
living in Urban centres by FY 2025, and the Urban population is expected to contribute 75% to India's GDP in FY
2025. This is expected to continue with approximately 50% of India's population expected to be living in Urban
centres by 2050 and contributing approximately 80% to India's GDP. An increase in Urbanization means an increase
in demand for living spaces which further aids the consumption of the Home furnishings and Décor category.

Exhibit 4.3: Increase in Urbanisation (CY)

50.0%
37.0% 40.9%
30.9% 32.8% 33.6% 34% 34.5% 35% 35.0%
27.7%

2000 2010 2015 2017 2018 2019 2020 2021 2025P 2030P 2050P

Source: World Bank

 Increasing Demand for Residential Real Estate

A significant increase in the demand for residential projects has increased the demand for home furnishing and
décor products. The rising replacement demand caused by increasing renovation activities in residential buildings
also drives product demand in this category. An increase in discretionary income is also a contributing factor
driving demand not only for the Home furnishing and Décor market but also particularly for branded
products in this category.

Exhibit 4.4: City-wise no. of Residential units sold

Growth Q1 Growth Q4
City Q1 21-22 Q4 21-22 Q1 22-23 Q4 22-23 22-23 over Q1 22-23 over Q4
21-22 21-22

Ahmedabad 5,289 8,164 8,516 7,857 61% -3%

Bangalore 9,100 10,193 10,501 9,607 15% -5%

Chennai 3,192 4,369 3,613 3,112 13% -28%

Hyderabad 4,933 7,112 7,676 8,482 56% 19%

Kolkata 2,324 2,926 3,121 3,292 34% 13%

Mumbai 15,006 18,410 18,847 19,863 26% 8%

NCR 6,427 9,197 9,126 15,176 42% 65%

Source: Secondary Research

37

 Increasing Investment in this sector

Investments in this sector by the government through schemes like Integrated Textile Parks (SITP) (INR 1,480 crore) and
Technology Upgradation Fund Scheme (INR 7,689 crore) from 2015-2016 to 2019-2020 to promote private equity and
provide employment in the textile industry have helped in further promotion of this sector. In the furniture industry,
100% of FDI is permitted through the automatic route, so foreign multi-brand retail companies can easily establish the
company in India. Also, now government has allowed 100% foreign direct investment (FDI) in single-brand retail without
prior government approval which has paved the way for single-brand furniture retail companies such as IKEA.

 Entry and growth of domestic players in this segment

Various domestic players have entered this segment over the years which has further led to the expansion of this
market. Players like Pepperfry, and Urban Ladder helped in the growth of the organized market in an industry that is
heavily unorganized. Domestic textile brands like Maspar, Birla Century, Indian Drape etc. are also expanding across the
country. Lifestyle retailers like Lifestyle, and Westside have been expanding their ‘Home sections’, and so have Value-
focused retailers like Style Baazar, V Mart etc.

4.3. Key Trends in Home Furnishing & Décor Market

 Furnishing fabrics in artisanal craftsmanship

Artisanal fabrics, such as georgette, chiffon, gauze, batiste, dotted swiss etc. are commonly used in curtains
and are becoming more popular in the market. Furthermore, velvets are also being preferred by consumers
as they add a luxury quotient to the home fabrics through varied prints, textures, and patterns.

 Sustainable and eco-friendly raw materials for manufacturing of products

Consumers are becoming conscious of the environment and external factors like Covid-19 have allowed them
to shape and shift consumption and lifestyle behaviours across the world. The increase in demand for products
manufactured from sustainable and eco-friendly raw materials is getting traction among consumers.
However, the strata of consumers following this trend are more likely consumers of premium-luxury products,
rather than Value fashion, whereby consumers look for Value for money.

 E-commerce and Technology adoption by players

E-commerce offers convenience and product varieties in terms of design, competitive prices etc. The growth
of demand is also fuelled by the integration and adoption of technologies such as Augmented & Virtual Reality
adopted by e-commerce platforms to provide a better customer experience. Players like Asian Paints and
others, through their apps, allow consumers to visualise wallpapers, carpets, flooring, and décor in their own
living spaces enabling an experience that enables purchase. Key technologies used in the design and
manufacturing of furniture are 3D modelling, virtual reality, augmented reality, and touch commerce etc.
Such technologies allow companies to design virtual models and prototypes which allow testing and
experimentation to alter it as per need. Other external factors like Covid-19 have also allowed e-commerce
platforms to capture the additional demands created due to remote working and the setting up of home
offices.

 Demand for multi-functionality products is moving beyond Metro and Tier 1 cities
Due to limited space & the features these products offer, consumers prefer multi-functional products. Such
products for compact spaces are becoming more popular since optimizing space is becoming necessary in
bigger cities. E.g., a sofa that can be converted into a bed, or a table that can be converted into the dining
space. However now, the demand for such products is moving beyond bigger cities due to their additional
features which allow consumers to invest in a single piece with functionality of two.
38

 Emergence of rental furniture providers

\

An increasing trend of rental furniture demand is being witnessed among working professionals & students.
Several online start-up platforms like Furlenco, Rentomojo, City Furnish etc. have emerged in the last 5 years
providing consumers with options to rent furniture more readily. Instead of investing in a lifetime purchase of
furniture, millennial consumers who are either living alone or sharing space with friends, colleagues etc. are
more inclined towards opting for rental furniture.
39

5. Other Categories in Lifestyle Segment

5.1 Indian Costume Jewellery Market

The Indian Costume Jewellery market was Valued at INR 27,900 Cr. in FY 2023. The market has shown consistent
growth since FY 2018 with a CAGR of 12.6% from FY 2018 to FY 2020. Due to the spread of the Covid-19
pandemic, the market suffered a de-growth of -0.5% from FY 2020 to FY 2022. However, it is projected to grow
at a CAGR of 15.5% to reach INR 49,600 Cr. by FY 2027.

Exhibit 5.1: Indian Costume Jewellery Market (INR Cr.)

49,600

12.6% -0.5% 25.1%

27,900
20,500 22,550 22,310
17,800 16,200

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027P

Sources: Technopak BoK

Majority of the revenue in the mid to luxury Costume Jewellery segment is contributed by organized retail (95-
100%), except the economy or mass segment where unorganised or unorganized retail plays a key role with
close to 85% revenue contribution.

Exhibit 5.2: Channel Wise Contribution – Costume Jewellery Market

Particulars Organized Retail Unorganised

Retail

B&M Online
Segment \ Format Stores
EBOs MBOs Own Website Other Partners

Luxury ~70% ~15% ~10% <5% -

Masstige ~65% ~23% ~7% ~5% -

Premium ~50% ~10% ~25% ~10% ~5%

Mid ~40% ~10% ~20% ~10% ~20%

Economy - - - ~15% ~85%

Sources: Technopak BoK

5.2 Key Trends in Costume Jewellery

 Varieties, Affordability, Artisanal look etc. factors have allowed Costume Jewellery to be relevant
among consumers
40

Costume Jewellery has gained traction among consumers due to lifestyle changes, rise in prices of precious
metals (Gold & Silver), lower cost, safer to wear etc. Also, it is much easier to build a collection for both casual
and formal occasions in line with evolving fashion trends as compared to unorganised jewellery segment. This
category appeals to all age groups, though more relevant for 20-40 years. women, and extends to both daily
and festive use.

 E-commerce marketplaces & emergence of Online-only brands

The increase in penetration of smartphones and internet connectivity across India allowed customers to shop
online from anywhere. Due to extensive product varieties in terms of design, price ranges, door-step delivery,
convenience etc.; usage of online platforms (E-commerce platforms, brand websites, social media) for
shopping among Indian consumers has increased. Due to the strong infrastructure of marketplaces like
Amazon, Myntra, Flipkart, Ajio etc., the online demand is not limited to metropolitan cities. Players like Avon
Products Inc., Voylla, Zaveri Pearls, Pipa Bella, Sukkhi Fashion Jewellery, Romoch, Swarovski Group, Tribe
Amrapali, Isharya, Yellow Chimes, Kushal’s, Youbella etc are key players in this segment, which are using both
own websites, social media like Instagram, and marketplaces to reach out to consumers. Smaller unorganized
players are also using social media platforms for sale.

5.3 Indian Bags & Luggage Market

The Indian Bags & Luggage market was valued at INR 22,700 Cr. in FY 2023 and has grown with a CAGR of 11.4%
from FY 2018 to FY 2020 but due to Covid impact in terms of colleges, weddings, offices etc. being suspended,
the Indian Bags & luggage market witnessed de-growth of 9.9% from FY 2020 to FY 2022. However, the market
is expected to grow with a CAGR of 11.3% to reach INR 34,830 Cr. by FY 2027.

Bags segment (51%) leads the contribution in terms of revenue followed by hard luggage (25%) and soft luggage
(24%), and a similar trend is expected to be witnessed over the next 5 years. However, in terms of growth, hard
luggage was leading the market (CAGR 15.8%), followed by soft luggage (CAGR 12.9%) and bags (CAGR 8.3%)
from FY 2018 to FY 2020 and this is expected to continue over the next 4 yrs. in terms of growth, except for bags
(CAGR 11%) which will outpace the growth of soft luggage due to their higher purchase rate as compared to
luggage.

Exhibit 5.3: Indian Bags & Luggage Market (INR Cr.)

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027P

Market Size 20,450 22,800 25,400 16,510 20,600 22,700 34,830

FY 2018-2020 FY 2020-2022 FY 2022-2023 FY 2023-2027

CAGR 11.4% -9.9% 10.2% 11.3%

17,599
8.3% -6.5% 10.5%
12,000
11,172 11,600
10,225 10,500
8,255 7,673
12.9% 6,000 -11.5% 14.9%
4,704 5,244 5,400
3,797 -14.6% 4,700 5.6%
13.8%
9,559
5,522 15.8% 6,384 7,400 4,458 5,400 5,700

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027P

Hard Luggage Soft Luggage Bags

41

CAGR FY 2018-2020 FY 2020-2022 FY 2022-2023 FY 2023-2027

Hard Luggage 15.8% -14.6% 5.6% 13.8%

Soft Luggage 12.9% -11.5% 14.9% 9.2%

Bags 8.3% -6.5% 10.5% 11%

Sources: Technopak BoK

Exhibit 5.4: Channel Wise Contribution - Bags & Luggage Market (INR Cr)

11,842
3,192 42.5%
4,572
7.7% 5,527 4,876
2,250 3,556 4,532 14.0%
3,068 3,420
2,678 3,053
4,575
1,651 5.5%
16,188 6.8% 17,272 -12% 18,112
15,133 13,390 14,120
10,284

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2027P

Traditional Org. B&M E-Commerce

CAGR FY 2015-2020 FY 2020-2022 FY 2022-2023 FY 2023-2027

Traditional 6.8% -12% 5.5% 6.4%

Org. B&M 7.7% -13.2% 14.0% 12.4%

E-Commerce 42.5% -0.44% 22.0% 21.0%

Source: Technopak BoK

In terms of region-wise contribution of the bags & luggage market, the northern part of India dominated and contributed
the majority of revenue (27%) followed by the western (26%), southern (25%) and eastern (22%) for FY 2023.

Exhibit 5.5: Region Wise Contribution – Bags & Luggage Market (FY 2023)

North
26% 27%
South
East
22% 25% West

Sources: Secondary Research, Technopak Analysis

5.4 Key Trends in Bags & Luggage Market

42

 Diversified product portfolio

Companies like VIP Industries have a variety of brands under their portfolio to cater to various customer needs
in terms of pricing, functionality, occasion etc. Players are taking the multi-brand approach to capture all
customer segments.
Brands Segments Value Proposition

VIP Mid Premium To target mid-premium customers in luggage

Skybags Mass to Premium Youth oriented, stylish and functional products

Aristocrat Mass To enable a shift from unbranded bags

Caprese Mass to Premium Modern women bags

Carlton Premium Premium International brand with premium positioning

Alfa Mass To enable a shift from unbranded luggage

 Theme/ Functionality driven products

Brands are introducing theme-based products for kids and adults alike, e.g., Star Wars, Disney, Soccer
collections etc. Product developments also keep in mind functional uses that add Value to existing products,
e.g., lightweight laptop bags, hard case luggage with biometric lock, Stain & water resistance, Anti-viral range,
Anti-theft, train travellers’ range etc. are some of such products. These help in increasing their share of wallets
as consumers are inclined to tap into their latent needs, and/or splurge on additional merchandise owing to
various themes/ fashion trends.

Illustrative Examples

5.5 Key Growth Drivers for Lifestyle Categories:

 Weddings and Festivals as a constant
Shopping for categories like fine or costume jewellery, bags and luggage, furnishing and decorative items etc.
for self-usage or as a gifting option is quite common and has grown continuously over the last few years due
to shifts in consumption patterns, lifestyle behaviours and changing fashion landscape. Auspicious events like
weddings and festivals create an enormous market for the purchase of these categories among the Indian
diaspora. E.g., gifting branded luggage, decorative items, furniture and furnishing etc. has now become part
of the wedding trousseau and this gives a boost to sales during the wedding/festive season.
43

 Multiple product ownership basis occasion and usage

There is consumer inclination towards multiple ownership of products such as bags, jewellery, luggage etc.,
which has been observed among working professionals as well as student groups due to their shift in
consumption & lifestyle patterns. The multiple ownership of products is considered based on occasions &
usage such as gym bags, office bags, travel bags or luggage, school bags, tuition bags, riding bags etc. This has
given a boost to this segment with every family member in middle-upper class households, including kids, now
owning multiple products in a category like bags.
44

6. Value Retail in Lifestyle and Home Segment

Value Retailing Overview
Value Retail can broadly be classified as the retailing of merchandise at price points that are affordable to the
consumer segments with high sensitivity to price. Price sensitivity exists across customer segments viz. high-
income customer segment’s price sensitivity towards a brand of car beyond a certain price or the mid-income
customer segment’s price sensitivity towards a piece of jewellery or footwear. In the need-based categories like
food & grocery and FMCG, it is difficult to slice the market between Value and non-Value retail based on this
behaviour because the price points and SKUs carry extensive overlaps at the retail point of sale.

Categories like Apparel, Footwear, Accessories, and Home (termed as discretionary non-food retail) witness the
trend of Value retail that can be measured and expressed more distinctly. These categories form the Lifestyle
(Apparel, Footwear, Accessories including Watches) & Home segment. SKUs of fast-selling goods sold at a certain
price point or lower within these categories in a modern retail environment aggregate to represent organized
Value retail.

The overall Lifestyle and Home Value retail market in India was valued at INR 5,67,334 Cr in FY 2023, which was
56% of the total market in these categories of Lifestyle & Home. In FY 2020, this stood at INR 4,75,775 Cr and
has shown an almost 100% recovery post the Covid decline. The market is expected to reach INR 9,72,058 Cr by
FY 2027, growing at a CAGR of 14.4% from FY 2023-27.

Exhibit 6.1: Size of Lifestyle & home Value Retail market in India- FY 2018, 2019, 2020, 2021, 2022,2023, 2027P

INR 3,90,213 Cr INR 4,30344 Cr INR 4,75,775 Cr INR 3,36,180 Cr INR 4,63,503 Cr INR 5,67,334 Cr INR 9,72,058 Cr

8%

6%

18.1%

13.4%
31%
7%
7.4% 6%
9.0% 8% 8%
9.6% 9% 6% -32.1% 35.0% 34.3% 14.7%
5%
9% 6%
6% 10.0% 31%
12.0% -31.2% 8% 34.3%
32% 6% 14.1%
32% 33%
32% 9.5%
11.0% -28.5% 32% 41.1%

9.8% 11.5% -29.2% 36.7% 28.6% 13.9%

53% 53% 54% 54% 53% 56% 55%

2018 2019 2020 2021 2022 2023 2027P

Apparel Home Accessories + Watches Footwear

Source: Technopak Analysis

Value LFS players like Style Baazar with a total addressable market of Rs. 4,63,503 Cr in FY 2022 are well-
positioned to capture significant market share of the fast-growing categories under the Apparel segment for
men, women, and children, as well as other non-Apparel categories such as Appliances, Toys, Luggage
Containers, Home décor, Perfumery, Sunglasses, and Bed Linen.

The overall Lifestyle & Home Value retail market has shown recovery and has grown at a CAGR of 22.4% from
FY 2022, with a market value of Rs. 5,67,367 Cr in FY 2023. This growth presents a promising opportunity for
Value retail players like Style Baazar to capitalize on the expanding market and strengthen their competitive
advantage.

Growth of Organized Value Retail

45

Organized Value retail includes Brick & Mortar led and E-commerce led retail, and each of these two groups
comprise of distinct players. The organized share of Value retail stood at ~28 of the total Value retail in Lifestyle
& Home in FY 2023. This has grown from ~22% share (INR 1,06,460 Cr) in FY 2020 and is expected to reach a
~36% share amounting to INR 3,48,426 Cr in FY 2027, growing at a CAGR of 22% from FY 2023-27.

Exhibit 6.2: Share of Unorganized and Organized Lifestyle & Home Value Retail – FY 2018, 2019, 2020, 2021,
2022, 2023, 2027P

INR 3,90,213 Cr INR 4,30,344 Cr INR 4,75,775 Cr INR 3,36,180 Cr INR 4,63,503 Cr INR 5,67,334 Cr INR 9,72,058 Cr

82% 83%
80%
78%
74%
72%
64%

36%
28%
26%
22%
18% 20%
17%

2018 2019 2020 2021 2022 2023 2027P

Unorganised Organised

Source: Technopak Analysis

Exhibit 6.3 Category-wise share of Unorganized and Organized Lifestyle & Home Value Retail – FY 2015, 2020,
2022, 2023, 2027P

Value Retail
2018 2019 2020 2021 2022 2023 2027P
Categories
Organ Unorga Organ Unorga Organ Unorga Organ Unorga Organ Unorga Organ Unorga Organ Unorga
ized nized ized nized ized nized ized nized ized nized ized nized ized nized
Apparel 22% 78% 25% 75% 29% 71% 17% 83% 32% 68% 34% 66% 40% 60%

Home 8% 92% 9% 91% 10% 90% 11% 89% 14% 86% 16% 84% 28% 72%

Accessories 22% 78% 25% 75% 29% 71% 30% 70% 30% 70% 32% 68% 40% 60%

Footwear 24% 76% 25% 75% 26% 74% 28% 72% 28% 72% 30% 70% 35% 65%
Source: Technopak Analysis

The organized players in this segment are bringing together the economy and mass segment of Lifestyle and
Home aiming to provide quality products at affordable prices in a good retail environment. These large format
stores catering to the entire basket of family needs are aimed at consumers who are first-time users of branded
products or at fashion-conscious middle-class consumers seeking quality and variety in Lifestyle and Home at
affordable prices. Value retail is focused on meeting the aspirations of the consuming class in the country.

Exhibit 6.4: Illustrative SKUs: FSP for Value and other price segments, and key players

Product Category Fastest Selling Price (INR)

Value Retail Mid-price Premium Retail Luxury Retail

Retail

Men’s Shirt Men Apparel 400 1500 5000 50,000+

Women’s Kurta Women Apparel 350 1200 4500 50,000+

46

Sports shoes Men Footwear 500 2000 5500 50,000+

Towels Home 200 1000 2500 20,000+

Bed cover Home 400 1500 4500 50,000+

Style Baazar, V Versace,

Calvin Klein,
Mart, Vishal Pantaloons, Burberry,
Organized B&M led Brooks
Mega Mart, V2 Shoppers Stop, Emporio
Players Brothers, Ritu
Retail, Baazar Lifestyle Armani, Rohit
Illustrative Kumar, D’Decor
Kolkata Bal
Players
Flipkart, Myntra, Ajio,
Exclusive E- Myntra, Ajio Luxe, Tata
Snapdeal, Amazon, Nykaa
commerce Players Amazon Cliq Luxury
Amazon Fashion

Source: Secondary Research, Technopak Analysis. FSP- Price at which most of the products of a category are sold in retail

Value Retail in Apparel

In the case of Apparel, Value retailing is an approach where the supply chain of fashion is appended to deliver
fresh fashion at a low value, focusing on consumers who are looking to wear branded Apparel in the economy-
mid price segment. It is characterized by frequent changes in the collections as per the latest trends, at
affordable and competitive prices. Players in this segment are tapping on consumers who have moved from
unorganized fashion to branded play, and consumers in tier 2 and 3 cities who are opening to the latest fashion
in branded space.

Value retail in the Apparel segment in India was estimated to be ~INR 3,17,733 Cr in FY 2023, accounting for 58%
of the overall Apparel retail market. This market is expected to reach INR 5,34,125 Cr by FY 2027, growing at a
CAGR of 13.9% from FY 2023-27.

Exhibit 6.5: Value Market- Apparel: Size in India (in INR Cr)- FY 2018, 2019, 2020, 2021, 2022, 2023, 2027P
INR 2,08,524 Cr

INR 5,47,628 Cr
INR 3,06,261 Cr

INR 5,34,125 Cr
INR 3,17,733 Cr
INR 3,65,832 Cr

INR 2,55,212 Cr

INR 4,11,750 Cr

INR 2,47,050 Cr
INR 4,01,600 Cr

INR 1,80,694 Cr
INR 2,28,912 Cr

INR 4,47750 Cr

INR 10,68,250 Cr

57% 57% 57% 59% 60% 58% 50%

2018 2019 2020 2021 2022 2023 2027P

Total Apparel Value Apparel

Source: Technopak Analysis. % in Value Apparel bars shows % share of Value Apparel in overall Apparel market

Exhibit 6.6: Value Apparel Market: Segmentation – FY 2023

47

Total Value Apparel Market INR 3,17,733 Cr Total Value Apparel Market INR 3,17,733 Cr

Ethnic Kids Men

Wear 27% 35%
33%

Western
Wear
67%
Women
38%

Source: Technopak Analysis

Exhibit 6.7: Region-wise market share for Value Apparel- FY 2023 & FY 2027P

INR 5,34,125 Cr

1,18,500

INR 3,17,733 Cr
12.7% 1,29,700
14.0%
64,642
80,238 1,52,600
12.8%
90,253
16.4% 1,33,325
82,641

2023 2027P

North South West East

The Value Apparel market in East India is expected to grow at a CAGR of 16.4% from FY 2023 to FY 2027, which
is the fastest among all regions. This is followed by the West region with a CAGR of 14.0%.

Value Retail in Home Segment

The Home Value segment is expected to grow at a CAGR of 14.7% from FY 2023-27, reaching INR 3,04,549 Cr
from the current INR 1,75,880 Cr for FY 2023.

Exhibit 6.8: Value Market- Home: Size in India (in INR Cr)- FY 2018, 2019, 2020, 2021, 2022, 2023, 2027P
48

INR 3,04,549 Cr
INR 1,25,676 Cr
INR 2,09,459 Cr

INR 2,32,500 Cr

INR 1,39,500 Cr

INR 1, 82,065 Cr
INR 2,54,637 Cr

INR 1,52,782 Cr

INR 1,75,880 Cr
INR 2,52,701 Cr

INR 1,54,148 Cr
INR 1,09,239 Cr

INR 3,03,242 Cr

INR 5,16,184 Cr
9.5%
11%

9.5%
11%

60% 60% 60% 60% 61% 58% 59%

2018 2019 2020 2021 2022 2023 2027P

Total Home Value Home

Source: Technopak Analysis. % in Value bars is the share of the Value market in the overall market

Key enablers leading to the rise of Value Retail in Lifestyle & Home
Few macro factors have enabled the rise of this Value retail in discretionary segments like Lifestyle and Home:

1. Value Retail’s Proposition for the Income sensitive segment

The consumers of Value Retail belong to the middle class and are aspirers, are commonly the Gen Y & Z
customers (10-40 age group with approximately 55% - 58% of the total Indian population), represent a significant
portion of the market with their increasing purchasing power and evolving preferences. Residing in tier 2, 3 and
4 cities in Urban and Semi-Urban areas, this market comprises households with an average annual income of
less than USD 5,000; of fashion conscious, value and quality seeking youth and young families, which forms the
bulk of the purchasing power of the Indian population. These consumers are of two kinds- 1) consumers who
are upgrading to branded products from being purchasers of unbranded/ unorganized markets, and 2) existing
purchasers of branded products, but looking for economical options since they like to upgrade/have variety in
their wardrobe and home.

This highly price sensitive consumer segment is the primary target of Value retail. All Households with income <
USD 10,000 are the potential targets for Value retail. These comprise ~68% of total HHs in 2020 and are expected
to comprise ~55% of total households by 2030.

Exhibit 6.9: Household Annual Earning Details

HHs with Annual HHs with Annual HHs with Annual HHs with Annual
Total Households
Year earnings less earnings of USD earnings of USD earnings greater
(in Mn.)
than USD 5000 5,000 - 10,000 10,000 –50,000 than USD 50,000
2009 236 187.9 35.9 11.1 1.2
2010 240 181.8 42.9 14 1.2
2012 254 170.2 60.5 22.1 1.3
2014 267 167.1 70.8 27.2 1.9
2015 274 151 84.7 36.2 2.2
2018 295 84.1 121.5 86.4 3
2020 310 79.4 131.8 94.9 4
2030P 386 69.5 142.8 162.1 11.6

Source: Technopak Analysis

49

They may represent students, contractual workers, gig economy employees, small business owners, lower-
income white-collar employees, circular migrants who work in sectors like restaurants and construction, support
services trade and the informal economy. Before the advent of Value retail as a distinct and organized retail
play, the proposition of Value retail was either loosely constructed and addressed by stand-alone shops that
sold category-specific merchandise, or informal trade like haats, street markets etc. Digital media’s rise enabled
the creation of an aware class that aspires to consume but had to rely on the existing arrangement of either
informality or category specificity of unorganised retail or both. The offering of Value retail addressed this need
gap by offering all under one roof, transparent pricing, shopping experience and range. Acceptance of this
proposition over informal and unorganised retail arrangements is validated by its rising share within the overall
Value retail opportunity.

2. Regional skew towards Value Retail

While the price sensitive consumer base exists across India, there exist regional skews within. This is reflected
in the share of Value retail in the overall retail pie of different regions of India. The higher proportion of Value
retail in East and North India is reflective of the income levels of these regions and the GDP per capita of these
regions compared to that of other regions or states. It implies that organized retail players like Vishal Mega Mart
in North India and Style Baazar in East India, who have adopted a cluster-focused approach to expand within
these regions seemed to have benefitted by tailoring and harnessing the proposition.

The market size of the Value-retailing industry in East India (the eastern and northeastern states of India) stands
at INR 1,19,508 Cr as of FY 2023, and the penetration of organized players stands at ~28% of the total market as
of FY 2023. With a CAGR of 16.6%, East is the fastest growing region for Value retail with an expected market
size of INR 2,20,802 Cr in FY 2027.

Exhibit 6.10: Region-wise market share for Value Retail (Lifestyle & Home)- FY 2023 and FY2027P

INR 5,67,356 Cr. INR 9,72,058 Cr.

2,20,802

2,37,306

1,19,508

1,44,997 2,76,077

1,56,777
2,37,873
1,46,074

2023 2027P

North South West East

Source: Technopak Analysis

East India/ Eastern India (including North East) are the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Bihar, Jharkhand,
Odisha, Sikkim, West Bengal. North- Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Delhi, Rajasthan, Uttar Pradesh, Uttarakhand. South- Andhra
Pradesh, Karnataka, Kerala, Tamil Nadu, Telangana. West- Goa, Maharashtra, Gujarat. Central- Madhya Pradesh, Chhattisgarh

Potential for Value Retail in East and North India:

The total market for Value Retail (Home & Lifestyle Segment) in North and East India was valued at INR 2,65,582
Cr for FY 2023 and is expected to reach INR 4,58,675 Cr in FY 2027. The level of overall organised play is also
expected to grow from ~28% in FY 2023 to ~36% in FY 2027.
50

These regions have the potential to accommodate ~8000 stores of Apparel Value retail chains by FY 2027.
Currently, players like V Mart, Style Baazar, V2 Retail etc. dominate these regions in the Value retail market. For
a single organised Value retail chain player, the region offers the potential to open approximately 800-1000
stores by FY 2027.

Exhibit 6.11: Potential stores in North & East region

Region-wise potential by FY 2027 No of Stores No of Stores per player

East India (including N-E)

8000 800-1000
North India
Source: Technopak Analysis

3. Network and Connectivity enabling access to the latest trends and ease of shopping
through digital payments

Ease of access to the internet has changed the consumer behaviour on many counts. It has enabled consumers
to get exposed to new trends, fashion, and values. The network connectivity has democratised access through
mobile devices to consumers of all strata’s. This trend is secular across all consumer classes and types, and the
ability (affordability) of the consumer is the only differentiator.

Strengthening of network connectivity enabled the growth of digital media and this in turn enabled the growth
of the dissemination of digital content on fashion, trends, merchandise products etc across a wider audience
than ever before. Digital marketing tools viz. social media and influencer marketing can be customised to an
individual’s preferences and desires and are therefore more effective than the conventional mass marketing
tools in shaping the consumer’s opinions. The rise of digital content dissemination has exposed a wider audience
to fashion, aspiration, global and national trends, and product options at a disruptive pace and readied a mass
base of consumer segments that are willing to consume Value retail more so than they have been in the past.
Differently put, the consumer audience for Value retail may face vulnerability on the account of affordability
and ability to spend but will not fall short on the desire to consume because of the role digital content has played
and will continue to play in shaping consumer preferences.

Exhibit 6.12: Growth of Digital Penetration in India (Year in CY)

2010 2015 2020 2023 2025 CAGR CAGR

2015-20 2020-25
Internet Users (Mn) 72 350 662 881 900- 14% 6-8%
1000
Mobile Internet users as a share of Total Internet 34% 45% 73% 74% 82% - -
Users (%)
Mobile Internet Users (Mn) 24 159 480 651 730- 820 25% 9-11%
Source: Secondary Research, Technopak Analysis

This growth of digital payments through means like UPI, QR Scan codes etc has enabled ease of shopping, which
has given impetus to consumer spending.

Exhibit 6.13: Rise of Digital Readiness and Digital Payments

Key Indicators (Mn) 2010 2015 2020 2023 CAGR 2015-23

Volume of Digital Payments 718 1,335 34,350 91,920 70%

Social Network Users India 27 142 530 612 20%

Smart Phones 6 170 480 600 19%

Source: Technopak Analysis, Secondary Research

51

4. Co-existence of E-commerce and Brick & Mortar in Value Retail

The brick retail formats offer a shopping experience and a destination for the entire family in addition to ‘all
under one roof’ proposition, and value pricing. Hence, brick retail formats have continued to grow over the
years. It is estimated that by FY 2027, share of Brick and Mortar in the Value retail (Apparel, home, accessories
and Footwear) will reach ~22% (INR 2,09,479 Cr) from ~18% (INR 1,04,418) in FY 2023, and the share of E-
commerce will reach ~14% by FY 2027 from ~10% in FY 2023. For this reason, the new players or formats entering
the Value retail segment have kept brick stores at the heart of their growth strategy viz. Zudio from Westside
and Max from Lifestyle.

The e-commerce for Value retail is driven largely by marketplaces viz. Amazon and Flipkart which present the
option of affordability and convenience. However, it is also witnessed that the value of retail in the brick format
has also grown during the same period and players like Style Baazar, V Mart, V2 Retail etc. are expanding their
brick formats across towns and cities. The reason for the growth of brick retail in conjunction with E-commerce
in Value retail validates that feed into the other.

Exhibit 6.14: Value retail via Organized B&M vs E-commence

Shopping Ease of trial Freshness of

Price Range Convenience
Experience and purchase Merchandise
Organized B&M ✓✓ ✓✓ ✓✓ ✓ ✓✓ ✓✓
E-commerce ✓✓ ✓✓ ✓ ✓✓ ✓ ✓
Source: Technopak Analysis

Growth Drivers and Trends in Value Retail

Rapid Urbanization and increasing disposable income

The trend of Urbanization in India is expected to continue with approximately 50% of India's population expected
to be living in Urban centers by 2050. High population growth is expected in tier 3 and tier 4 cities as the Rural
population migrates to these cities in search of work opportunities. As a result, the working population is
expected to rapidly increase across Tier 3 and 4 cities supporting these cities to emerge as new growth engines
for Value retailers as when a consumer explores branded play for the first time, Value fashion acts as the entry
medium for the same.

Furthermore, the Rural population is also stepping up in income levels due to the availability of manufacturing-
based jobs, expansion of agriculture into value-added farm activities and the government’s rural employment
schemes. As a result, an urban lifestyle with a price balance/value is increasingly being adopted in rural areas.

Growth in organized retail offering a better shopping experience

The growth of organized retailers and the proliferation of mall culture have conditioned consumers to the idea
of a robust shopping experience with an air-conditioned environment, facility of trial rooms, a wider product
range, price transparency, quality assurance, and on-floor service assistance. This experience has been perceived
to be constrained by price as most of such retailers happened to be in the premium segment. However, Value
retailers have been able to bridge this gap and have been able to provide a higher shopping experience to first
time consumers of brands/organized channels.

Continuous Operations and Supply Chain Improvement

Value retailers have been exercising strong control over the retail value chain including sourcing, supply chain,
merchandising, store operations and customer management. Focus on sustainable relationships with suppliers
and investment in warehousing, logistics and inventory management have been key ingredients for the success
of these retail formats.
52

Expansion through Clustered approach and regional nuances

Most of the Value retailers like V-Mart, KLM, Zudio and V2 Retail have strengthened their foothold regionally
within clusters before foraying into other regions. Expansion through a clustered approach has lent them the
advantage of optimizing the supplier base, warehousing infrastructure and product offering based on the
customer preferences specific to such regions given that the culture varies every 100 – 150 kilometers. Unlike
the premium and super-premium segments, wherein the offering is designed in agreement with the global and
macro fashion trends, the Value segment needs consideration for heterogeneity to accommodate the nuances
of the regional requirements and sensibility. Through a clustered approach, these retailers have been able to
add more value to their offerings. The cluster-based approach also helps the retailers in exhausting the
opportunity in that cluster by operating a large number of stores in that area thereby creating an entry barrier
for the other competitor brands.

Also, national brands try to customize their offerings based on the region the stores are in by offering customized
offerings particular to the region, in addition to the regular national range. The regional Value fashion players in
the south, however, keep a higher share of sarees in the women's apparel category, compared to what a national
player would while operating the south India.

Growth in Tier 3 & 4 cities

Focusing on Tier 3 and 4 cities has aided these retailers in unlocking the consumption potential of these cities.
Approximately 23% of the total demand for Apparel is estimated to come from these cities, ~60% of which is
currently estimated to be within the Value segment. The organized Value retailers have led the transition of the
Value Apparel segment in these cities from being largely unorganized to being somewhat organized. The ability
to provide quality products at affordable prices in a dignified retail environment has been an important reason
for the wide acceptance of these formats across Tier 3 & 4 cities.

Focus on Private Labels

Largely all the Value retailers are private labels led with some national brands included to complete the retail
offering. Investments in robust product design and development capabilities and focus on private label
development across categories have been the key factors that enabled the Value retailers to offer fashionable
products at affordable prices, along with improved margins for the retailers.

Competitive Landscape
In the early 2000s, retailers like V-Mart, V2 Retail etc. pioneered the Value retail segment which was largely
unorganized until then. This trend was followed by entities like Vishal who established Value Apparel retail
chains to leverage this opportunity, and by regional players like Style Baazar, M Baazar etc. At present, a few
organized retailers such as Zudio, and V-Mart are national players with an equitable focus on all regions and
players like Style Baazar, Baazar Kolkata, Citykart etc. are regional players focused on select clusters. A significant
share of Apparel sales of e-commerce players such as Flipkart, Amazon and others also comes from the Value
segment.

The key success factors for the brick-and-mortar players have been targeted private labels, sharp price points,
large format store layouts giving a better shopping experience, understanding of customer’s preferences,
offerings for entire family’s needs, regular fashion freshness and continuous supply chain improvement.

Exhibit 6.15: Key Organized B&M Value Apparel Retailers

Year of Size of Player

Key Players Operating Company Focus
Inception (FY 2023 Revenue in INR Cr)
Style Baazar 2013 Baazar Style Retail Ltd. Regional – East 787.9

Baazar Kolkata 2002 Baazar Retail Pvt Ltd. Regional – East 642.1*

M Baazar 2009 Metro Retail Pvt. Ltd. Regional – East 715.9

53

Citykart 2016 Citykart. Regional - East & Central 523.7

V2 Retail 2001 V2 Retail Ltd National 838.9

V Mart 2003 V-Mart Retail Limited National 2464.8

Source: Secondary research, Technopak Analysis. National Players- Present in more than 2 regions. *Revenue for FY 22

Market Share of Key Players

Style Baazar is one of the leading players in the Value Retail Market in East India among its peers with a share of
2.16% in the organized Value retail market in East India for FY 2023. All their stores are branded under ‘Style
Bazaar’ brand.

Exhibit 6.16: Market Share of Key Players in Value- Lifestyle & Home Market: FY 2023

Revenue Market Share in Market Share in Market Share in

(INR Cr)- India Value Retail East Value Retail East Value Retail
Company FY 2023 Organised Market Market Organised Market
Style Baazar 787.9 0.50% 0.61% 2.16%

M Baazar 715.9 0.45% 0.47% 1.69%

Citykart 523.7 0.33% 0.19% 0.68%

V2 Retail 838.9 0.53% 0.36% 1.28%

V Mart 2447.9 1.54% 0.60% 2.14%

Source: Technopak Analysis. Revenue of players in East market through estimation basis Number of stores in each state and Revenue per store.

Incorporated in 2013, Style Baazar is a Value fashion retailer with leadership position in terms of scale in the
states of West Bengal and Odisha respectively in in the Organized Value retail market. It captured a share of
2.67% in West Bengal and 2.70% in Odisha for FY 2023. It is also among the leading players in the Assam market
with a share of 2.43% in the same segment.

Exhibit 6.17: State-wise Market Share of Key Players in Value- Lifestyle & Home Market: East India- FY 2023

Market share Value Retail Market share Organized Value

Players (Lifestyle + Home) Retail
(Lifestyle + Home)
Odisha West Assam Odisha West Assam
Bengal Bengal
Style Baazar 0.76% 0.75% 0.68% 2.70% 2.67% 2.43%
M Baazar 0.49% 0.51% 0.93% 1.76% 1.81% 3.32%
Citykart 0.04% - 0.17% 0.13% - 0.61%
V2 Retail - - 0.59% - - 2.09%
V Mart 0.28% 0.23% 0.62% 1.01% 0.81% 2.20%
Source: Technopak Analysis. State-wise revenue of players is derived through estimation based on the number of stores in each state and Revenue per store. East
India (including North East) are the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Bihar, Jharkhand, Odisha, Sikkim,
West Bengal. North- Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Delhi, Rajasthan, Uttar Pradesh, Uttarakhand. South- Andhra Pradesh, Karnataka,
Kerala, Tamil Nadu, Telangana. West- Goa, Maharashtra, Gujarat. Central- Madhya Pradesh, Chhattisgarh
54

7. Operational and Financial Benchmarking

Operational Benchmarking
The organized players in the Value segment are bringing together the economy and mid-segment of fashion
aiming to provide quality fashion at affordable prices in a good retail environment. These large format stores
catering to the entire basket of family needs are aimed at consumers who are first-time users of branded
products, or at fashion-conscious middle-class consumers seeking quality at affordable prices.

The Value format retail model has become increasingly popular in recent years as consumers look for ways to
save money on their purchases. Additionally, with the rise of e-commerce, more and more consumers are
turning to online retailers for lower prices and convenience. There is a large addressable market for Value
Apparel retail made up of millennials and Gen Y & Z customers (14-40 age group) and consumers residing in tier
2, 3 and 4 cities in Urban and semi-Urban areas. This market comprises of households with an average annual
income of US$ 5,000 – US$ 10,000 of fashion-conscious, Value and quality seeking youth and young families,
which forms the bulk of the purchasing power of the Indian population.

Exhibit 7.1: Overview of Players

Operating States where Cities where

Key Players Year of Inception No. of Stores
Company stores present stores present

Style Baazar 2013 Baazar Style Retail Ltd. 153 9 140

Baazar Kolkata 2002 Baazar Retail Pvt Ltd. 155 9 103
M Baazar 2009 Metro Retail Pvt. Ltd. 148 9 132
Citykart 2016 Citykart Pvt Ltd. 103 7 66
V2 Retail 2001 V2 Retail Ltd 107 16 90
V Mart 2003 V-Mart Retail Limited 447 26 264
Source: Company Websites, Secondary Research. Brands store counts from Jan’24 from website store locators. V Mart store counts include V Mart & Unlimited
stores.

Exhibit 7.2: Store count: Growth 2017-2023

CAGR
Key Players 2017 2018 2019 2020 2021 2022 2023* (2017-
2023)
Style Baazar 19 38 72 84 91 135 153 42%
Baazar Kolkata 40 NA NA 106 116 115 155 25%
M Baazar NA 52 73 NA 118 118 148 -
Citykart 18 29 48 63 79 69 103 34%
V2 Retail 37 49 77 76 95 83 107 19%
V Mart 141 171 214 266 279 429 447 21%
Source: Company Websites, Secondary Research. *Store counts as of Jan’24 for all players. V Mart store counts include V Mart & Unlimited stores.

Style Baazar was the fastest growing Value retail player among the given peer set, in terms of store count from
the period 2017 to 2023, with a CAGR of 42%, and has expanded across states with 153 stores as of January
2024. Players like Citykart, Baazar Kolkata and V Mart also showed a CAGR of 34%, 25% and 21% respectively,
though V Mart's growth was fuelled by inorganic growth i.e. acquisition of 74 Unlimited Retail stores in FY 2022.

Exhibit 7.3: Store Closures FY 2021-2023

55

Key Players FY 2021 FY 2022 FY 2023

Style Baazar 2 3 5
V2 Retail 8 4 11
V Mart 7 12 16
Shoppers Stop 20 4 1
Westside 2 10 6
Source: Company Annual Reports, Secondary Research. V Mart store counts include V Mart & Unlimited stores. Public listed companies in retail like Westside
and Shoppers Stop taken for a broader benchmarking.

Store Closures measure the efficacy of selection of a retail location and its success. Style Baazar had the lowest
store closures when compared to other listed players in Value Retail.

Region-wise & Tier wise split of key players

Value led retail format brands have a larger focus on Tier 3 and 4 cities and a major share of their stores are
spread across these tiers. Value players like Style Baazar, V Mart, V2 Retail etc have a concentration of stores
majorly in Tier 2, 3 and 4 beyond cities with nearly 60-75% of all stores for a Value retailer being present in
Tier 3 and tier 4 cities.

Exhibit 7.4: Store Presence- Tier wise

Player Total Stores Metro & Tier1 Tier 2 Tier 3 Tier 4 &
Mini Metro beyond
Style Baazar 153 3 2 7 64 77
Baazar
155 11 6 34 74 30
Kolkata
M Baazar 148 11 3 18 74 42
Citykart 103 0 13 10 48 32
V2 Retail 107 9 5 25 44 24
V Mart 447 41 72 112 168 54

Source: Secondary sources, Store locator of brands, Technopak Analysis.

Metros-NCR and Mumbai, Mini Metro Population >5Mn, Tier 1= 1-5 Mn , Tier 2= 1-0.3Mn, Tier 3= 0.15-0.3 Mn, Tier 4 <0.15 Mn. Players data as of Store
Locator on the website for Jan’24.

Exhibit 7.5: Store Presence- Region-wise

Player Total North South East West Central

Style Baazar 153 9 6 137 - 1

Baazar Kolkata 155 11 - 143 - 1
M Baazar 148 12 - 136 - -
Citykart 103 53 - 49 - 1
V2 Retail 107 45 7 48 3 4
V Mart* 447 203 80 130 15 19
Source: Secondary sources, Store locator of brands, Technopak Analysis. Data as of Store Locator on the website for Jan’24.
North- Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Delhi, Rajasthan, Uttar Pradesh, Uttarakhand. South- Andhra Pradesh, Karnataka, Kerala,
Tamil Nadu, Telangana. East- Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Bihar, Jharkhand, Odisha, Sikkim, West Bengal.
West- Goa, Maharashtra, Gujarat. Central- Madhya Pradesh, Chhattisgarh

The Value retailers are most densely spread out in East and North India with most Value retailers having the
majority share of stores in these 2 regions. Majority of the stores for Citykart are present in the East and
56

Northern Regions. V Mart also has a strong East and North presence, followed by South India, however, it is
expanding to all other regions of India. Style Baazar is predominantly present in East India with 92% of its stores
in East India and a limited presence in South, North and East India. Being a prominent regional player allows
them to be well versed with the customer demographics, gives better control on manpower allocation, and
supply chain and helps them being closer to the customers.

Category Offerings across Player Groups

Value Retailers position themselves as ‘all under one roof’ and keep a wide variety of key categories across Men,
Women, Kids and Home categories, further splitting into Apparel, Footwear, Accessories, Toys and Games etc.

Exhibit 7.6: Category-wise Presence of Key Players

Sub- Baazar
Category Style Baazar V Mart M Baazar V2 Retail Citykart
Category Kolkata

Men Winter wear ✓ ✓ ✓ ✓ ✓ ✓

Western ✓ ✓ ✓ ✓ ✓ ✓
wear

Indian Wear ✓ ✓ ✓ - ✓ ✓

Sportswear ✓ ✓ ✓ - ✓ ✓

Accessories ✓ ✓ - - ✓ ✓

Women Winter wear ✓ ✓ ✓ ✓ ✓ ✓

Western ✓ ✓ ✓ ✓ ✓ ✓
wear

Indian Wear ✓ ✓ ✓ - ✓ ✓

Sportswear ✓ - - ✓ ✓

Accessories ✓ ✓ ✓ - ✓ ✓

Western ✓ ✓ ✓ - ✓ ✓
wear
Kids
Indian wear ✓ ✓ ✓ ✓ ✓ ✓

Toys and ✓ ✓ ✓ - ✓ -
Board
Games

Bathing ✓ ✓ ✓ - ✓ -

Bed Linen ✓ ✓ ✓ - ✓ ✓

Home Light ✓ - - - - -
Furniture

Storage ✓ - - - ✓ -

Crockery ✓ - ✓ - ✓ ✓
57

Luggage ✓ - ✓ - ✓ ✓

Source: Company Websites, Secondary Research. Accessories for Men refer to wallets and belts. Accessories for Women is referred to as bags, purses, and
jewellery

Apart from Apparel, which is the key category for all Value retailers, entry in the kids category allows Value-led
formats to increase their customer base and increase their product offering by adding toys and games to the
product mix. The introduction of home decor has been recent, and we can see Value-led retailers adding Soft
Home products like bed sheets, bed linens, cushions etc to their products as a starting point. Further, some
retailers have added other Home items like carpets and show pieces, and storage items such as plastic, glass and
metal containers.

Retailers are aiming to increase their share of private labels going forward. V Mart had a private label share of
45-48% in overall revenue FY 2023, while V2 Retail had a share of 40%. Style Baazar’s share of private labels
stood at 31% for the same period.

Exhibit 7.7: Share of Revenue from Private Labels- FY 2023

Player % Private Label share of Total Revenue % Private Label share in Apparel segment

FY 2022 FY 2023 FY 2022 FY 2023

Style Baazar 25% 31% 27% 35%

V2 Retail 38% 40% NA NA

V Mart 45-48%* 54% 53%

Source: Company Annual Reports. *Estimated

Private branding enables brands to differentiate themselves from competitors, enhance customer loyalty, and
improve profit margins by offering unique products exclusive to their stores. This strategy not only drives
revenue but also allows brands to maintain control over their product assortment and brand image.

Review of Financial Performance

1) Revenue
Revenue from operations is the top line parameter for a company’s financials. Style Baazar was the fastest
growing value retail player during the period FY 2017 to FY 2023, in terms of revenue with a CAGR of 27.8%
among the given peer set.

Exhibit 7.8: Revenue from Operations in FY (INR Crore)

Company 2017 2018 2020 2021 2022 2023 CAGR FY 2017-23

Style Baazar 181 305 629 427 551 788 27.8%
Baazar Kolkata NA NA 651 448 642 NA na(1)
M Baazar 345 433 556 371 534 716 12.9%
Citykart 147 187 359 267 375 524 23.6
V2 Retail 472 559 701 539 629 839 10.1%
V Mart 1002 1222 1662 1075 1666 2465 16.2%
Note: Citykart FY 2018 revenue is standalone.NA- Not Available, na (1)- can’t be calculated
Note: All players use IndAS as the accounting purposes except M Baazar that uses GAAP and Citykart used Indian GAAP till FY 21 and used INDAS for FY 22 & FY
23.
Note: Citykart: FY2017 and 2018 numbers are standalone, FY 2020, 2021 and 2022 numbers are consolidated.
Note: M Baazar: All numbers are standalone
Note: V Mart: All numbers are standalone
Note: V2 Retail: All numbers are standalone
Note: Baazar Kolkata: All numbers are standalone

2) EBITDA margin
 58

EBITDA margins is largely used to compare the profitability of the companies against competitors. It is also used
to standardize the business performance against the industry averages. Style Baazar has grown from EBITDA
margin of 10.2% in FY 2020 to the highest EBITDA margin of 12.9% in FY 2023, registering a CAGR of 16.6% for
the same period. This is on account of strong processes instituted by the company for controlling operating
expenses at the store level by ensuring low cost of operations compared to other players in value retail segment.

Exhibit 7.9: EBITDA (INR Crore) and EBITDA margin (%) profiles in FY

Company 2020 2021 2022 2023 CAGR FY 2020-23

Style Baazar 64 10.2% 47 10.9% 68 12.4% 101 12.9% 16.6%
Baazar Kolkata* 105 16.2% 52 11.7% 77 12.0% NA NA -14.6%
M Baazar* 43 7.8% 24 6.4% 49 9.2% 74 10.3% 19.6%
Citykart 35 9.6% 32 12.0% 47 12.5% 53 10.1% 15.2%
V2 Retail 100 14.3% 49 9.0% 65 10.3% 84 10.0% -5.6%
V Mart 214 12.9% 131 12.2% 204 12.3% 269 10.9% 8.0%
Source: Technopak Analysis, Annual Reports
*Note: CAGR shown on basis of EBITDA value.
*NA- not available, na(1)- Not able to calculate due to negative numerator or denominator or both.
Note: All players use IndAS as the accounting purposes except M Baazar) that uses GAAP and Citykart used Indian GAAP till FY 21 and used INDAS for FY 22 &
FY 23.

3) PAT margin
The profit after tax and PAT margins are used to assess if a company’s business is profitable after meeting the
operating and overhead costs. The PAT margin is negative across most of the players with available information.

Exhibit 7.10: PAT (INR Crore) and PAT margin (%) profiles in FY

Company 2020 2021 2022 2023 CAGR FY 2020-23

Style Baazar -10 -1.6% -18 -4.3% -8 -1.4% 5 0.6% na(1)
Baazar Kolkata* -17 -2.6% -164 -36.6% -48 -7.4% NA NA na(1)
M Baazar* 24 4.4% 12 3.3% 29 5.5% 47 6.6% 24.6%
Citykart 21 5.9% 5 1.8% 7 1.8% 0 0.1% -77.7%
V2 Retail 9 1.3% -13 -2.4% -12 -1.9% -13 -1.5% na(1)
V Mart 49 3.0% -6 -0.6% 12 0.7% -8 -0.3% na(1)
Source: Technopak Analysis, Annual Reports
*Note: PAT Margin = PAT/Net Revenue, CAGR shown on basis of PAT value.
*NA- not available, na(1)- Not able to calculate due to negative numerator or denominator or both.
Note: All players use IndAS as the accounting purposes except M Baazar) that uses GAAP and Citykart used Indian GAAP till FY 21 and used INDAS for FY 22 &
FY 23.

4) Cash Conversion Cycle

Cash conversion cycle describes the number of days it takes for a company to convert its inventory into sales
generating cash. The lower the working capital days, the more efficient the business is. Citykarthad the lowest
cash conversion cycle in FY 2023.

Exhibit 7.11: Cash Conversion Cycle for competitors (in FY)

Company 2020 2021 2022 2023

Style Baazar 52 68 75 86
Baazar Kolkata* 66 97 77 NA
M Baazar* 23 116 91 84
Citykart 14 29 43 55
V2 Retail 86 141 155 117
V Mart 75 131 103 87
Source: Technopak Analysis, Annual Reports
*NA- not available, na(1)- Not able to calculate due to negative numerator or denominator or both.
Cash Conversion Cycle= Inventory Days + Days Receivables – Days Payables
Inventory Days= (Average Inventory/COGS)*365
59

Receivable Day= (Average Receivables/Revenue)*365

Payable Days= (Average Payables/COGS)*365
Note: All players use IndAS as the accounting purposes except M Baazar that uses GAAP and Citykart used Indian GAAP till FY 21 and used INDAS for FY 22 & FY
23.

5) Marketing and advertisement spend and Yield on marketing and advertisement spend

Marketing and Advertising Spend as a percentage of Revenue, or marketing/advertising to sales ratio indicates
the efficacy of advertising strategies of the company. In terms of marketing spend as % of revenue, V Mart had
a spend of 3.5% in FY 2023, compared to 1.5% by Style Baazar and 0.7% by V2 Retail.

Exhibit 7.12: Marketing and advertising spend and yield on Marketing spend as a % of revenue (in FY)

Company 2020 2021 2022 2023 CAGR FY 2020-23

Style Baazar 15 2.3% 4 1.0% 8 1.4% 12 1.5% -6.6%
Baazar Kolkata 17 2.7% 7 1.6% 12 1.8% NA NA -17.9%
M Baazar 13 2.3% 8 2.0% 12 2.3% 18 2.5% 11.5%
Citykart 5 1.5% 4 1.4% 5 1.4% 9 1.7% 18.3%
V2 Retail 3 0.5% 5 0.9% 5 0.8% 6 0.7% 20.3%
V Mart 35 2.1% 19 1.7% 42 2.5% 86 3.5% 34.6%
Source: Technopak Analysis, Annual Reports, NA-Not Available; Formula – as a % of Revenue
*NA- not available, na(1)- Not able to calculate due to negative numerator or denominator or both.
Note: All players use IndAS as the accounting purposes except M Baazar that uses GAAP and Citykart used Indian GAAP till FY 21 and used INDAS for FY 22 & FY
23.

6) Other Key metrics

Style Baazar has the largest retail footprint in East India at ~11.5 sq. ft. among the mentioned peers. It is also
among the top 3 players in terms of SPSF with an SPSF of INR 7,445 for FY 2023.

Exhibit 7.13: Other key metrics for FY 2023- SPSF, Average Inventory per sq. ft, EBIDTA per sq. ft, Inventory per
store (INR) – Annual Metrics

Total Retail
Average % Share of Average
EBITDA per sq. Inventory per Footprint in
Player SPSF (INR) inventory per Apparel in Transaction
ft (INR) store (INR Cr) East India
sq. ft (INR) revenue Value (INR)
(Lakh sq. ft.)

Style Baazar 7,445 2,500-2,600 800-900 2.1-2.3 85% 1041 11.4-11.6

M Baazar 6,800-7,000 1,400-1,500 600-700 1.1-1.3 ~70% NA 8.7-8.9
Citykart 7,100-7,300 2,100-2,200 600-700 1.7-1.9 ~75% NA 3.3-3.5
V2 Retail 7,812 2,600-2,700 700-800 2.7-2.9 96% 797 4.7-4.9
V Mart 7,476 2,000-2,100 700-800 1.7-1.9 79% 1017 10.7-10.9
Source: Technopak Analysis, Annual Reports. Calculations on FY 2023 financial data. Above parameters given as ranges/ approximations as these are
estimations. Revenue used in SPSF is Gross Sales (before GST). SPSF, ATV, % Share of Apparel data for V2 Retail, V Mart, Style Baazar from their annual
disclosures.
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Disclaimer
 Only leading players are profiled and benchmarked for the purpose of the report and does not
necessarily cover all types of players.

 The information contained herein is of a general nature and is not intended to address the facts and
figures of any particular individual or entity. The content provided here treats the subjects covered here
in condensed form. It is intended to provide a general guide to the subject matter and should not be
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Authors of the Report

Ankur Bisen
Senior Partner and Head of Retail
ankur.bisen@technopak.com

Madhulika Tiwari
Partner
madhulika.tiwari@technopak.com

Priyanka Abrol
Principal
priyanka.abrol@technopak.com

Niharika Singh
Associate
niharika.singh@technopak.com

Shivam Chopra
Research Associate
shivam.chopra@technopak.com

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