Global apparel companies make a strong comeback in India
India Infoline News Service |
28 Nov, 2022 |
In FY22, a half-dozen global apparel and lifestyle brands expanded about 30% to 70% to generate combined annual revenues of nearly $2 billion, reversing a year ago's performance when Covid-induced restrictions on mobility and business operations caused sales to dwindle.
H&M's Swedish fashion retailer sales increased 49%, while Zara's topline increased 61%. According to the most recent filings with the Registrar of Companies, Japanese retailer Uniqlo saw a 64% increase in sales, while American denim manufacturer Levi Strauss saw a 58% increase.
Lifestyle International, based in Dubai, saw a 38% increase in revenue on a large base, while German brand Puma expanded 68% despite being the largest firm in the sporting segment.
The revenue growth comes as most of these retailers face increased competition from both local and global rivals in an increasingly crowded market where web-commerce firms continue to offer heavy discounts.
According to Abhishek Ganguly, managing director of Puma India and Southeast Asia, the penchant of young Indian consumers for e-commerce is extremely high, and acceptance of the online mode of shopping continues to accelerate even after normal business operations resume.
Even multinational corporations have increased their online focus, and for some, web-based orders account for more than a third of their total revenue.
For example, Puma India's online sales account for nearly half of its total revenue, while in the case of H&M, the share is 42%.
India, the world's second most populous country, is an appealing market for aspirational apparel brands as rising disposable income broadens the consuming base of the pyramid.
Global brand performance is also in line with the overall trend in the home-grown apparel and lifestyle segment, with Shoppers Stop, Tata-owned Trent, and Aditya Birla Fashion & Retail all reporting strong performance rebounds, indicating a long-term demand for discretionary products.
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