indian fashion retail 2016 by intelligence node
TRANSCRIPT
Indian Fashion Retail- 2016
A summary of our in-depth research on the Indian fashion industry
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Appendix
• Evolution of Retail…………………………………………..Slide 04
• What Matters to Millennial consumers……………………Slide 10
• Rationale for producing this whitepaper…………………Slide 14
• Findings…………………………………………………..…Slide 16
• Link for downloading the whitepaper…………………….Slide 24
• About Intelligence Node………………………………...…Slide 25
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EVOLUTION OF RETAIL
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From a shopper behavior perspective
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Retail Market Size - 2015
$600BILLION
$1
Retail Market Size – 2020 (e)
SINGLE CHANNEL COMMERCE
2015+
MULTI CHANNEL COMMERCE CROSS CHANNEL
COMMERCEOMNI CHANNEL
COMMERCERELEVENCE COMMERCE
2012
2010
2008
2006
TRILLION
Evolution- Retail
Evolution- Breakdown of Retail
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USD Billion ($)
0 200 400 600 800 1000 1200
2005
2010
2015
2020
General vs Modern Trade
Modern Trade General Trade
+12%
890-910 165-180
550-560 60-70
300-310
15-20
200-210
5-10
CAGR (2015-2020)
21%
10%
( India )
Evolution- Future-Role of mCommerce in Retail
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11%13%
17%
23%
44%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015 2020
on
line
pen
etra
tio
n
Mo
bile
Ph
on
e/Sm
art
-Eco
m U
sers
Digitisation trend for Indian market(in mn)
MOBILE PHONE USERS SMART PHONE USERS ONLINE PENETRATION
Internet users in India are expected to triple from 200 million in 2014 to 600 million in 2020 Smartphone proliferation to increase from 120-140 million in 2014 to 500-600 million in 2020
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“It is really hard to design products by focus groups. A lot of times, peopledon’t know what they want until you show it to them.”- STEVE JOBS, BUSINESSWEEK, MAY 25, 1998
Who are the shoppers driving
this growth?
Today, We can cater to shoppers whoknow exactly what they want.
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Today, retailers cater to shoppers who know exactly what they want
WEBSITES
DISCOUNTS
AND PROMOS
COMPARISION
SHOPPING
SHOWROOMING
PRODUCT REVIEWS
SOCIAL
PLUGINS
SOCIAL
MEDIA
WISHLISTS
WEBROOMING
Why do Millennials matter?
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India Population Breakdown- 2015
Millenials Non Millenials
India Population Breakdown-2020
Millenials Non- Millenials
64%
36%
76%
24%
India is known as one of the youngest countries in the world today- with a large share of millennials, which will continue to grow.
W H AT MATTERS TO MILLENNIALSIN SELECTING A PRODUCT/BRAND
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HOW DO THEY PREFER TO BUY?
MILLENIALS PURCHASEDUE TORECOMMENDATION ON SOCIAL MEDIA
3 million minutesMILLENNIALS SPEND ON MOBILEPER MONTH.
68%
40%
33%
28%
Item Price Previous UsageAnd Trust Of Brands
Male Millennials Would BuyEverything Online If TheyCould
Female Millennials WouldBuy Everything OnlineIf They Could
Shopper Loyalty Cards AndDiscounts
51%
millennials use video 2xmore to make purchasedecisions
87% 70% 70%
Online Coupons
In Store Ads
SOURCES: EMARKETER, AT KEARNEY, NEILSEN,PWC, STATISTA, BUSINESSWEEK
Fashion Macro View
ONLINE VS. OFFLINE SALES
39%PURE PLAYRETAILERS
37%CLICKS N BRICKSRETAILERS
24%MANUFACTURERSITES
MILLENNIAL CONSUMER BEHAVIOUR- BUYING TREND
17.2% 82.8%
Fashion Macro View
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$54
USED CASE
Changes price
every 10.5 mins.
3.647 Bn USD
Revenue in 2014
+27%increase
in brand value
Opened its smaller outpost stores with specific merchandise assortments which nurture growth andoutperform legacy stores.
SOURCES:EMARKETER, AT KEARNEY, NEILSEN,PWC, STATISTA, BUSINESSWEEK
Millennials’ avg basket spend per trip at fast fashion houses.
Millennial males spend 2x
moreon apparel compared
to non millennial males.
Millennial females spend 3xmore on apparel ccomparedto non millennial females.
ABOUT THE REPORT
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Why this Report?
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The Indian Retail industry is projected to grow to $ 1 Trillion by 2020
Organized retail (offline +E-commerce) is expected to grow at a CAGR of 20% reaching $180 billion by 2020
India is slated to become the youngest country on the planet as early as 2021, with more 3/4th of the population being millennials.
Millenials by choice are cross platform shoppers who like brands/retailers to customize their buying experience- birth of relevance commerce
As fashion analytics experts, we felt obliged to share insights about India’s fashion landscape.
The whitepaper gleans insights from 1,784,090 SKU’s across 12,058 brands identified by Intelligence Node across India’s organized fashion sector for FY 2015-16
FINDINGS
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Indian Fashion Composition- 2015-16
40%
9%
47%
4%
Catalogue Distribution: Overall
Fashion Accessories Footwear
Apparel Lingerie
₹ 0
₹ 5
₹ 10
₹ 15
₹ 20
₹ 25
₹ 30
₹ 35
₹ 40
₹ 45
₹ 50
FashionAccessories
Footwear Apparel Lingerie
Ave
rage
Pri
ce/D
isco
un
t in
'00
Average Selling Price/Discount:Overall
Average Price Average Discount
Sub Category Analysis- Apparel
5%
9%
42%
15%
29%
Apparel Distribution:Sub Category
Dress Apparel Set Ethnic Wear
Bottomwear Topwear
₹ 0
₹ 5
₹ 10
₹ 15
₹ 20
₹ 25
Dress Apparel Set Ethnic Wear Bottomwear Topwear
Ave
rage
Pri
ce/D
isco
un
t in
'00
Average Selling Price/Discount
Average Price INR Average Discount
Here’s a look at the category composition for Fashion as it reflects in our retail analytics product
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Screenshots are taken from iNCompetitor, our SAAS product
Here’s a deeper look at the Apparel category…
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Screenshots are taken from iNCompetitor, our SAAS product
Let’s take a deep dive into the Ethnic category…
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Screenshots are taken from iNCompetitor, our SAAS product
Pricing and discounting trends…
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Screenshots are taken from iNCompetitor, our SAAS product
Distribution of Sari’s by Attributes…
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Screenshots are taken from iNCompetitor, our SAAS product
Read the Full Report
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42%
• Ethnic wear comprises 42% of the Indian Fashion Catalog.
51%
• 51% of the Footwear Catalog is reserved for Men.
69%
• 69% of the Indian Fashion Catalog caters to Women.
Read Report
Key Findings
ABOUT INTELLIGENCE NODE
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© 2016 14-04-2016 26
1 BILLION+UNIQUE PRODUCTS
1 petabyteOF DATA
1100+CATEGORIES
130,000+UNIQUE BRANDS
OUR PRODUCT SUITE HELPS OPTIMIZE THE ENTIRERETAIL LIFECYCLE:
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DESIGN PLANOGRAM SUPPLY CHAIN VISUAL
MERCHANDISING
PROMOTIONS PRODUCT
RECOMMENDATIONS
PRICINGLOGISTICS
WE SERVE CLIENTS GLOBALLY.
Intelligence Node is a Big Data analytics lab with operations inMumbai, London and Sofia
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