Indian Apparel Market Overview

Apparel Retailing is the second largest contributor to the Indian Retail Market after food and grocery. Interestingly, in the organised sector, apparel retailing is the largest and the most penetrated segment. During the past three years, Indian apparel retail market has grown at a CAGR of 10% to reach` 174,000 Crore in 2012. Urban ready-to-wear segment accounts for 28% of the apparel retail market in India. The urban ready-to-wear segment is growing at a faster clip than the overall apparel retail market. Having grown at a strong CAGR of 12% in the past three years, the size of urban ready-to-wear segment is estimated at ` 48,000 Crore in 2012. It is slated to grow at a CAGR of 13% for the next four years and reach to a size of ` 77,000 Crore by 2016

Categorising the urban ready-to-wear sector by gender/age, the share of Menswear at 53% was the largest in 2012. Menswear will continue to dominate the sector, however, the womenswear and kidswear are expected to grow faster and enhance their share in the overall expanding pie.

Brand Leadership Pantaloons is among the top 2 large format fashion retailers in India

Pan India Footprint: Unparalleled reach The number of large format Pantaloons stores is one of the highest in the Indian fashion industry. Currently, it operates through 70 large format company owned and company operated stores. The average size of a Pantaloons store is around 24,000 square feet

Pantaloons commands the first mover advantage in several locations across East India. More than 50% of the Pantaloons large format stores are present in the top 8 Indian cities, capturing the large market size opportunity offered by these Tier 1 cities. Pantaloons also recognises the growing aspirations, changing consumer preferences towards branded clothing and increasing disposable income in tier 2 and tier 3 cities.

the Company has around 3.8 Million loyalty customer base at present one of the largest in the country payback and green card

Across the segments, Pantaloons sells approximately 400 brands which comprises a mix of private labels, licensed brands and other brands

Brands like Louis Philippe, Van Heusen, Allen Solly, Peter England

Threats
Fashion trends are constantly changing Being a consumer facing service industry, human capital is key to the growth of our business. The loss of key personnel or inability to attract and recruit talented and skilled personnel may impact the business and ability to grow. Rent, selling expenses and overheads form a large part of the operating costs. The ability of the business to garner higher sales on assets employed is key to mitigate the risk and generate optimum returns on investments Consumer spending on fashion products is highly correlated with the growth of the Indian Economy. As our business is driven by domestic consumption, any slowdown in the Indian economy willimpact the business growth and profitability The fashion retail industry is heavily dependent on availability of quality retail space at desired locations and at a reasonable cost Many global brands have also entered India and increased their presence rapidly. Easing of FDI in retail is likely to further intensify the competition with the potential entry of more international brands.