The Enigma of India's Absent Large Consumer Brands in Apparel and Footwear!
India, despite its vast market and growing economy, lacks homegrown large consumer brands in the apparel and footwear space. Let's delve into why.
The Divided Market: India's consumer landscape is starkly split:
This division profoundly shapes consumer preferences:
The affluent seek global brands to flaunt, while the rest prioritize utility and affordability.
The Millennial and Gen Z Factor: India's largest working population consists of Millennials and Gen Z. These generations, raised by parents who valued frugality and hard work, now form the backbone of the country's earning population. However, their consumption patterns are split:
This generational shift is crucial because:
Despite forming the largest working demographic, this generation's spending power remains divided. The affluent minority drives demand for global brands, while the majority still prioritizes value, making it challenging for Indian brands to cater to both segments effectively.
Challenges for Indian Brands:
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Global Brands' Struggle: Despite India's market size, global brands face hurdles:
The Bottom of the Pyramid Myth: While there's a large population, their limited purchasing power makes it challenging for brands to tap into this segment profitably.
Indian Brands' Uphill Battle:
This dichotomy in the largest earning population further explains why neither Indian nor global brands have been able to dominate the market fully. Indian brands struggle to appeal to the status-seeking affluent, while global brands find it difficult to penetrate the value-conscious majority.
The Path Forward: For Indian brands to flourish, the country needs:
Current Consumption Trends: The disposable income is currently focused on:
In conclusion, while India's market holds immense potential, it needs economic growth, reduced income disparity, and a shift in consumer preferences before Indian brands can truly flourish in the apparel and footwear sectors. The journey is challenging, but the opportunity remains vast for those who can navigate these complexities and effectively cater to the diverse needs of India's largest working demographic - the Millennials and Gen Z.
Retailer | Growth Leader | Adept in revolutionsing Customer experience Integrating Digital Interface | P&L management
2 个月Rajiv Mehta Samir Saraiya The value fashion brands like Vishal Mega Mart, Vmart, are often not in radar due to their dominant regional presence. This essentially caters to Bharat. Zudio is defying this trend which has caught the fancy of millennials and GenZ equally and should a a billion dollar apparel brand in 2-3 years times with a national footprint. So we need to look beyond the biggies like Arvind Mills or Aditya Birla Apparels to see a bouyant and vibrant strides made by value fashion retailers. Samir Saraiya Manish Agarwal
Retailer | Growth Leader | Adept in revolutionsing Customer experience Integrating Digital Interface | P&L management
2 个月Rajiv Mehta Samir Saraiya The value fashion brands like Vishal Mega Mart, Vmart, are often not in radar due to their dominant regional presence. This essentially caters to Bharat. Zudio is defying this trend which has caught the fancy of millennials and GenZ equally and should a a billion dollar apparel brand in 2-3 years times with a national footprint. So we need to look beyond the biggies like Arvind Mills or Aditya Birla Apparels to see a bouyant and vibrant strides made by value fashion retailers. Samir Saraiya Manish Agarwal
Head - Green Finance @ EximPe | Angel Investor | Accelerating Decarbonisation
3 个月Rajiv - This is a supremely insightful view. When the consuming 10% becomes even 30% we are due for significant disruptions in the Indian apparel market. Three ideas I would add for anyone reflecting on this problem: 1. Serve missed opportunities in India's market of markets - ex: TN has the population of South Korea, and like SK, TN has its own unique weather, cultural and socio-economic preferences different from Maharashtra or Delhi. When you consider, TN's per capita GDP of ~$3K USD, there are unique regional opportunities potentially underserved in these markets. 2. The Innvoation problem - Our textile industry is heavily cotton biased and technology-backward. 70% of the world's garment input is cheaper man-made fibre, where we have limited competence. Though Cotton is favorable for mostly hotter Indian weather, but cotton is costly. Serving another 10-30% of the market might just be possible with material innovations supported by a favorable government program, which is desperately missing. 3. The Investment problem: This is no secret - The Indian textile market drives 20-30% of India's exports but is under-capitalised for quality manufacturing, and does not really attract the best talent. This needs to change.
CEO (Consumer Products) | Product, Marketing, GTM | Brand-Builder | Startup Mentor & Investor | Keynote Speaker
3 个月Definitely Agree! We still don’t have a large consumer brand The only thought that comes to my mind is - presence of large number of brands and cut throat competition Also I feel we don’t also have a premium Indian brand (except Kama and Forest Essential) nothing more I can remember
Co-Founder at Little Monk
3 个月India's growing economy and large consumer base create a ripe environment for a large brand to capture the attention of domestic consumers. The country's middle class is expanding, and consumers are becoming increasingly tech-savvy and aspirational. A successful brand could capitalize on these trends by offering unique products or services that cater to the evolving preferences of Indian consumers. While a consumption boom is uncertain, a large brand that effectively resonates with the Indian market could certainly experience significant growth.??