The women's wear segment in India has witnessed significant growth, accounting for 38% of the country's total apparel market. The increasing number of working women has led to a surge in their purchasing power, driving the demand for fashionable clothing. Recognizing the immense potential in this market, Aditya Birla Fashion and Retail Ltd (ABFRL), a key player in the Indian fashion industry, has recently made a strategic move to expand into women's wear. In this article, we explore the hold of women wear in India, along with ABFRL's insights and the vision shared by Ashish Dikshit, Managing Director at ABFRL.
The Hold of Women Wear in India
The women's wear segment in India has traditionally been dominated by unorganized players. However, the market has witnessed a transformation as modern, organized players have entered the space. With the increase in the number of working women and their rising disposable income, the women's wear market is experiencing remarkable growth. The influence of globalization and fast fashion has led to heightened fashion awareness among Indian women, resulting in a projected CAGR of 11% for the women's wear market, expected to reach Rs 2,89,518 crore in 2025. Ethnic wear, western wear, indo-western wear, and innerwear are the key categories driving this growth.
ABFRL's Strategic Expansion into Women's Wear
Recognizing the vast opportunities in the women's wear segment, ABFRL has set its sights on expanding its presence in this market. With a focus on delivering high-quality clothing options to meet the evolving fashion choices of women, ABFRL made a strategic move to acquire a controlling stake in TCNS Clothing Co., a leading women's ethnic wear retailer. This acquisition is expected to catapult ABFRL's ethnic wear business to a projected revenue of ₹5,000 crore within three years, with a strong emphasis on women's wear.
Insights from Ashish Dikshit, Managing Director at ABFRL
Ashish Dikshit, the Managing Director at ABFRL, sheds light on the significance of the TCNS Clothing acquisition and ABFRL's vision for the future. Dikshit acknowledges that ABFRL's brand portfolio was lacking a substantial presence in the women's wear segment, despite having a robust lineup. He highlights the remarkable growth in the women's wear market, driven by small designers creating captivating designs. Dikshit believes that women are willing to invest generously in beautifully crafted Indian garments, which makes the acquisition of TCNS Clothing a strategic move to complete ABFRL's portfolio.
Dikshit further emphasized, The addition of TCNS Clothing will significantly strengthen ABFRL's ethnic wear portfolio. With TCNS Clothing's exclusive focus on women's wear, nearly half of the projected ₹5,000 crore revenue would come from this acquisition. ABFRL aims to make women's fashion the largest segment globally, dedicating 80-85% of their ethnic wear portfolio to women's wear. Dikshit hopes for women's wear to account for at least 40% of their overall revenue.
Conclusion
The women's wear segment holds a dominant position in the Indian apparel market, driven by the increasing number of working women and their growing purchasing power. And, ABFRL's strategic expansion into women's wear through the acquisition of TCNS Clothing showcases their commitment to capturing the opportunities within this thriving market. With the insights shared by Ashish Dikshit, ABFRL aims to elevate its ethnic wear portfolio and establish itself as a leader in women's fashion.