The Inside Story: What Makes Fashion Retail The Most Profitable Segment For Malls

The Indian fashion retail market is currently worth `2,97,091 crore and is envisaged to grow at a promising CAGR of 9.7 percent to reach `7,48,398 crore by 2026. The depth and variety of fashion brands have taken a quantum leap in shopping malls across all the sub-categories including apparel, footwear bags and accessories…

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Fashion plays an important role not only individually but also in society. It allows us to define our own style and personality, outlines us as individuals and opens doors of acceptance in modern society.

With the rising importance of fashion in the Indian scenario, it is no surprise then that the Indian fashion retail industry is on a meteoric growth trajectory. Indian designers are taking the global industry by storm, peddling unparalleled designs – for both apparel and accessories – in the international market. The glamour quotient is at an all-time high with the Millennial population emulating models and film stars.

This Millennial consumer – with his/her high-income level, even higher spending capacity and his stop anytime-you-wish attitude – wants the best of fashion. The consumer is ready to explore and happy to spend and the retail industry is eager to comply. The fashion retail sector is catering to the evolving consumer through a number of mediums, including physical and digital, while striving to provide that all important Omnichannel engagement.

New Global Ranking

Recently, India surpassed China as the top retail destination in the world. The change in ranking is an outcome of four factors including increased consumer spending beyond essentials, mobile and internet penetration, favourable foreign investment climate and cashless transactions.

Favourable trade policies, GST to a certain extent, and the increased penetration of organised retail into the interiors of the country are among other factors contributing towards making the Indian fashion retail industry attractive for investors.

Pankaj Renjhen, Managing Director - Retail Services, JLL India,