The rise of value fashion retailers in India has been a significant trend in the retail industry over the past few years. Akash Agarwal, the whole-time director at V2 Retail Ltd., a chain that specializes in affordable clothing in tier 2 and tier 3 towns, believes that this decade belongs to value fashion retailers. With a 37% same-store sales growth in the first quarter of this year, V2 Retail is on track to reach a turnover of Rs1,500 crore by FY2025. This success has been fueled by the increasing demand for trendy, branded fashion at affordable prices.
The entry of big national retailers like Shoppers Stop and Reliance Retail into the value fashion segment has further boosted the growth of this market. Shoppers Stop’s Intune and Reliance’s Yousta are competing with other established brands like Tata Trent’s Zudio and Landmark Group’s Max. The success of these brands has led to a two-fold jump in profit for Trent, driven by the increased demand for budget fashion at Zudio, which already has over 550 outlets. Aditya Birla Fashion and Retail Ltd. has also expanded its affordable trendy fashion chain, Style Up, to cater to the younger generation.
The global trend of consumers preferring affordable fast fashion is also evident in India, with brands like Fashion Nova and Shein gaining popularity. The younger generation is more inclined to buy multiple affordable outfits rather than splurging on a single premium brand, as they value variety and trendiness over brand names. This shift in consumer behavior has propelled the growth of value fashion brands in India.
While sustainability may not be a top priority for consumers in the value fashion segment, the focus on quality and affordability has been key to their success. The shift from unorganized to organized retail in apparel has been driven by the aspiration of consumers in small towns to shop at branded outlets. Value fashion retailers have capitalized on this trend by offering high-quality, fashionable products at attractive price points.
The success of brands like Zudio has set a benchmark for other players in the value fashion segment, attracting more companies to enter this market. The post-COVID era has seen a resurgence in demand for value-priced products, as consumers prioritize affordability and trendiness. To meet this demand, fashion retailers have strengthened their supply chains and manufacturing ecosystem, ensuring efficient operations and scalability.
As the value fashion segment continues to grow, the competition has become intense, with consumers demanding the latest trends at affordable prices. Managing supply chains efficiently and understanding consumer preferences are crucial for the success of value fashion brands. With the Indian apparel retail market projected to reach $60 billion in 2022, the potential for growth in the value fashion segment is immense.
In conclusion, the rise of value fashion retailers in India reflects a shift in consumer preferences towards affordable, trendy fashion. With the entry of big national retailers and the success of established brands, the value fashion segment is poised for further growth in the coming years. By focusing on quality, affordability, and efficient operations, value fashion retailers are meeting the demands of budget-conscious consumers and reshaping the retail landscape in India.