New Delhi, Sep 24
The organised retail apparel sector in India is projected to see 8-10 per cent revenue growth this fiscal, riding on higher demand stemming from a normal monsoon, easing inflation, festive and wedding season and increasing preference for fast fashion, a report showed on Tuesday.
Retailers in the country are adjusting business strategies, enhancing supply chain efficiency and focusing on new trends – particularly in fast fashion – to meet the evolving consumer behaviour.
According to the Crisil Ratings report, retailers will focus on enhancing efficiencies at existing stores, controlling costs and limiting reliance on external debt, which will help maintain their operating margin at 7.2-7.4 per cent despite continued high marketing expenses, thereby ensuring stable credit profiles.
The mass market segment accounts for 60 per cent of total sales now, compared with 56 per cent before the pandemic, due to the rising popularity of fast fashion, which is expected to be the primary revenue driver this fiscal, said Anuj Sethi, Senior Director, Crisil Ratings.
The likely increase in demand for premium clothing during the upcoming festive and wedding seasons will also contribute to overall revenue growth of 8-10 per cent this fiscal, he added.