CHANGING CONSUMER PERCEPTION TOWARDS APPAREL RETAILING IN INDIA.

SUBMITTED TO:Ms. Harleen Sahni

SUBMITTED BY:Aditya Gupta Loveleena Morya Jasleen Sardar MFM-I

INDIAN RETAIL INDUSTRY:Retailing -worlds largest private industry with US$ 6.6 trillion sales annually.

India

is the fifth largest country in the world in terms of Retail Industry.

The retail trade in India had a share of 2007 8-10% in the GDP (Gross Domestic Product) of the country. 2009 It rose to 12% and Future Expected to reach 22% .

Retail

industry is generally divided into Organized and Unorganized Retailing:Organized = 16% share in total retail industry.

ORGANIZED RETAIL MARKET

APPAREL RETAIL IN INDIA:According

to the Annual Report 2010-11 of the Ministry

of Textiles. The industry currently contributes about 14percent to industrial production. 4 percent to GDP. 17 percent to the countrys export earnings. Direct employment to more than 35million people. It estimates that by 2015, the overall Indian apparel industry would be worth Rs 2.88 lakh crores and the organized market share will be 25 per cent of this.

CONSUMER BEHAVIOUR:Consumer

behaviour - is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Customer

behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer.

Consumer

Lifestyle Reports in India provide current and detailed snapshots of the unique behaviors, attitudes and spending patterns of consumers in India.

CONSUMER BASE:India,

with 1,220,200,000 (1.22 billion) people is the second most populous country in the world.
The

Indian textile and apparel market size was estimated to be Rs 2,73,000 crores ($58 billion) in 2011 .
India

has a large and aspirational middle-class of 75 million households or 300 million individuals.
the

rise in the total number of Indian millionaires with investible assets, excluding main residence and consumer durables of more than US$ 1 million, grew almost 51%.
Huge

consumer base is one of the reasons for India to be on 5th position in its Global Retail Development Index (GRDI) and second in Asia after China.

CHANGES IN CONSUMER BEHAVIOUR AND LIFESTYLE:While

traditional clothes are still worn in most of rural India, urban India is changing rapidly, with international fashion trends adopted by the young and glamorous, in the cosmopolitan metros of India.
India

has emerged as the third most attractive market destination in the world for fashion apparel retailers.
Rapid

growth and rising urbanization have spawned a new class of consumers with more money to spend, and a growing passion for fashion. Indias high-growth, fast-changing retail clothing market, we see significant new growth opportunities for foreign and domestic players.
In

Population of youth has increased

Consumers are no longer sensitive toward sprice. Influence of role models Wide acceptance of e-shopping

FACTORS INFLUENCING CHANGES TOWARDS CONSUMER LIFESTYLE:Indian

apparel sales are expected to reach an estimated $25 billion this year, having grown in excess of 10 percent over the past 5 years.
a

growth rate faster than that of the overall India retail market. growth is being driven by a number of factors:

This

in disposable income. By 2005, 21 million of Indias 210 million households already earned more than $4,000 a year, qualifying them for membership in what we call the consuming class.
Increase

urbanization and the comparative youth of Indias population. India has large share of young population starting from the age of 15 25 who tend to shop more in recent days.
Further

Fashion

increasingly a form of self-expression. Increasingly, Indian consumers are embracing the idea of fashion for its own sake, as a means of self-expression, and not merely as a functional purchase. in the womens segment. Historically, the mens apparel market in India has been significantly larger than the womens apparel market. With only 20 percent of Indias urban women in the workforce, womens wardrobes have traditionally been limited to home wear and items for special occasions.
Growth

occasions. As the lifestyles of Indias prospering urban consumers have evolved, their clothing needs have broadened, reflecting more varied usage occasions. Indeed, 38 percent of Indian respondents to a recent study said they were highly likely to buy apparel for special events.
New

rise of organized retail. Large, branded store chains where products are systematically stocked and displayed, will speed the transformation of consumer preferences.
Continued

Mall

Culture:- Increase in the number of malls that has been opening in various cities of India are changing the shopping experience of the Indian Consumers.
Awareness

and Level of education:- As the level of education of the Indian population has changed tremendously in past years. Which makes them aware about the better options.
Other

factors :- E-RETAILING CULTURES MARKETING CONCEPTS