Over 300 global fashion brands to open stores in India by 2020, says McKinsey report
By Retail4Growth Team | April 23, 2019
According to data from McKinsey's FashionScope city-level growth forecasting tool cited in a report, India's apparel market will be worth $59.3 billion (about Rs 4.12 lakh crore) in 2022.
A Mckinsey Fashionscope report has indicated that India is a major retail destination for more than 300 international brands who are expected to open stores in the next two years in the country.
The report titled ‘State of Fashion 2019’ says that India will be the focus for global brands this year in the midst of the economic expansion happening across Asia, driven by “strong macroeconomic tailwinds” and their expected growth of 8 % per annum between 2018 and 2022. According to the report, the Indian middle class is set to expand at 19.4 % a year, outpacing China, Mexico and Brazil.
Further, as per data from McKinsey's FashionScope city-level growth forecasting tool cited in the report, India's apparel market will be worth $59.3 billion (about Rs 4.12 lakh crore) in 2022, making it the sixth-largest in the world and comparable to Britain at 65 billion dollars (Rs 4.51 lakh crore) and Germany at 63.1 billion dollars (Rs 4.38 lakh crore).
The report however adds that the apparel business in India is still largely unorganised with “formal retail accounting for just 35 % of sales in 2016. Its share is likely to reach around 45 per cent by 2025, still a relatively low proportion”.
McKinsey's FashionScope is a global region wise analysis of fashion markets - the mature markets, growing markets and the major growth drivers, market challenges and other aspects presenting indictors for global brands to plan their expansion.
The total online retail in the country is currently pegged at $18 billion and is growing at a CAGR of 23 per cent, according to a Jefferies report quoted in media.
The three brands are among the 20 fastest growing luxury brands globally, according to a Deloitte report.