Perspective on India Apparel and Footwear market

India's consumer landscape is undergoing a significant shift. With nearly one-third of the country's $100B D2C market set to be dominated by apparel and sneakers, this is a great space for emerging startups. As the e-commerce wave continues to grow and home-grown brands rise to meet specialized consumer needs, here are few things that we believe influence success in this space:

1. Inventory is the make-or-break:?In fast fashion and rapidly changing trends, inventory management is not just a logistical need but a strategic asset. The delicate balance between overstocking and stockouts is where profitability meets consumer satisfaction. Efficiently managing your inventory can lead to reduced costs, increased sales, and a brand reputation for reliability and customer-centricity.
2. Lack of repeat is the silent killer:?One-time sales drive topline in the short-term, but long-term growth lies in repeat customers. Cultivating brand loyalty ensures steady revenue, reduces marketing costs, and can turn customers into brand ambassadors. Incentivizing repeat purchases and building genuine customer relationships is imperative in today's competitive landscape.
3. Yes, size matters:?Diversity in sizing is more than inclusivity; it's smart business. With the variety in Indian body types, a comprehensive size chart ensures that a larger consumer base feels catered to. Offering a wide range of sizes can increase your market share and has the added benefit of helping improve returns due to issues with fittings.
4. Omnichannel all the way:?The consumer journey is no longer linear. A seamless integration of online and offline touchpoints drives consistent brand messaging. It enhances the customer experience, especially in the case of premium sneakers and apparel, where the see-touch-feel factor is important. Whether the customers are shopping from the comfort of their homes or experiencing products in-store, an omnichannel approach ensures they're always within your brand's ecosystem.
5. Design velocity:?The fashion industry is ever-evolving. Staying ahead requires not just acknowledging trends but anticipating them. A rapid design turnover ensures your collections remain fresh, relevant, and aligned with global shifts. This agility can set you apart from competitors and position your brand as a trendsetter.
6. Gross margin mastery:?While profitability is essential, the approach to gross margin varies widely among brands. Factors like material sourcing, production methods, and chosen product categories play significant roles. Strategic choices in these areas allow brands to tailor their margins to align with their overarching business goals. We have seen brands with lower margins reach EBITDA positive stable state as fast as brands with higher margins, sometimes even faster.?
7. Targeting new white spaces:?The Indian consumer's palette is diversifying. Tapping into niches like streetwear, activewear, and specialised footwear can unlock previously untouched market segments. Moreover, as India strengthens its global manufacturing powerhouse, leveraging local resources can lead to cost efficiencies and faster time-to-market.

Creating a foothold in India's vast apparel and footwear sector is an intricate dance between strategy and adaptability. With the market's magnitude, there's room for multiple players to flourish.