As far as innovation in product design and improvement goes, the fashion industry is highly competitive in nature. Continuous evolution and expansion in changing consumer trends are driving the growth of fashion accessory market…
The global fashion accessory market is projected to grow at the rate of 6.5 percent between 2018 – 2023. As far as innovation in product design and improvement goes, the fashion industry is highly competitive in nature. Continuous evolution and expansion in changing consumer trends are driving the growth of fashion accessory market.
The largely unorganised fashion accessory market is now being targeted by significant players within the manufacturing sector by providing distinctive and enticing prime quality products offerings. These manufacturers have been working towards acquiring emerging players in the market in a bid to expand the consumer base. Their interest in the segment has been fueled by consumer preferences for high quality fashion accessories like eyewear, handbags, shoes, scarves etc. – especially since fashion accessories have now become a part of people’s daily wardrobes.
Consumers today are becoming progressively passionate about adopting latest fashion trends and they’re demanding eco-friendly products – factors that are majorly giving the fashion accessories market dynamics a makeover as well as a major boost.
FACTORS FUELING THE MARKET
Some factors and opportunities which are driving the growth of this segment are:
Expanding Global Markets Outside The Western Region: International expansion is often the only way for industries to grow and major retail giants are recognizing the fact that it is as important to tap global markets other than those in the western region.
Increasing Online Access & Smartphone Penetration: There has been a major rise in the demand of smartphones, which is only increasing the access to e-commerce platforms. With people being able to access fashion online, there has been a swell in the number of consumers as well. With the growing preference for convenience along with the rising popularity of online retail stores, the demand for fashion accessories is being driven across the globe. Due to the increase in demand for apparel and eyewear products along with the growing influence of promotional strategies by e-commerce players, especially during festival season, is supporting the market growth from the last few years.
Rise in Use of Digital & Social Media: A significant rise in the influence of social media and fashion blogs is responsible for the rise in demand of various fashion accessories. Online marketplaces contribute to maximum growth for fashion accessories considering the easy accessibility and availability without any size requirement. The increased use of digital media and improvement in digital marketing strategies in the developing economies for product market places is playing a pivotal role to drive the growth of fashion accessory market from past few years.
Easy Availability of Products: The sale of products such as apparel, footwear, handbags, and eyewear are influenced by the easy availability and affordability of fashion accessories.
Emerging Middle Class With Disposable Income: Rise in the middle class’s disposable income, increase in the number of working professionals, widening exposure through the internet and the growing acceptance of fashion accessories has given the segment a major fillip.
Innovating Technologies To Create Experiential E-commerce: Technology and innovations have made access to the fashion industry easy and effortless. The increase in the growth of e-commerce with the facilities of online shopping is contributing significantly to the market.
Improved Distribution: The improvement in the distribution strategy by the key players mostly in distribution structure, available resources, inventory turns, order filling techniques, etc. are expected to drive the market growth continuously in the expected forecast period.
POPULAR CATEGORIES WITHIN THE SEGMENT
The fastest growing categories in the fashion accessory market are handbags, eyewear and jewellery. The Indian handbag industry has projected to grow at a CAGR of 18 percent by 2020, continuously growing at a rapid pace. The increase in the number of working women, development of retailing and specialty stores, have contributed significantly towards the handbag industry of India.
In the eyewear industry, almost 80 percent of the market is occupied by spectacles while the remaining 20 percent is accountable for sunglasses. The eye-wear sector of India is expected to draw `1,700 crore business in the next two years.
Apart from the handbag and eyewear industry, the Indian gems and jewellery sector has shown steady growth in recent years. This sector is one of the major contributors to the Indian economy. To expand the country’s jewelry industry, the Indian government has set a target to reach a total of $60 billion in jewellery exports by 2020.
It has been estimated that the Asia-Pacific region will witness fastest growth rate in the fashion accessories segment in the coming years.
The growing demand for products which are exclusively available in the retail stores and consumer inclination towards adaptation of latest fashion trends are driving the fashion accessory market growth in the North American region widely. However, the growing attraction of luxury lifestyle, high purchasing power, and the influence of celebrity endorsement are driving the market growth in the Asia-Pacific region. Owing to the improving distribution network across the region, the Asia-Pacific market is estimated to witness significant growth rate in the coming few years.
The fashion retail market of India has witnessed several remarkable changes and challenges in recent years, which are the indicators of the country’s evolving fashion retail market. The challenges associated with these changes are constantly being addressed in the most efficient and prudent manner.
Within the fashion retail market, the growing demand for fashion accessories in India makes for an interesting and lucrative segment. The Indian retail market is estimated to validate a promising year-on- year growth of 6 percent to reach US $865 billion by 2023, from the current US $490 billion.
CHALLENGES & BOTTLENECKS IN INDIA
Every sector faces obstacles when there are drastic changes in the market. Some of the key challenges that are faced by the Indian fashion market which have been addressed through innovative thinking are:
Market Heterogeneity: A key characteristic of the Indian retail market that can be decoded by comparing it with the developed retail markets to evaluate the thorough understanding of buyer preferences across the country and differences in consumer buying patterns.
Evolving Consumer Needs: The fashion accessory market keeps changing according to the latest trends which require the reconsideration of the consumers. It is important to meet the needs of consumers, depending on the ongoing developments in the industry. Far from the mature retail market, the Indian retail market has to continuously focus on the process of learning, unlearning, and relearning.
Rising Real Estate Rentals: High leasing costs resulting in mispriced commercial real estate is a major concern for Indian retailers. It
is quite difficult for retailers to find a suitable commercial retail space in most Indian cities. Retailers have to push the government to allocate more retail space which can be rented/leased-out at reasonable costs.
Infrastructural Bottlenecks: Due to poor conditions of roads, highways, etc. Indian fashion retail is facing infrastructural bottlenecks which creates supply chain constraints and increases inventory costs.
The fashion retail market of India has witnessed several remarkable changes and challenges in recent years, which are the indicators of the country’s evolving fashion retail market. The challenges associated with these changes are constantly being addressed in the most eﬃcient and prudent manner.
Looking trendy and fashionable has never been so easy as it is today. Everyone is well-turned out today in latest styles of clothing and shoes. The advent of fast fashion is one of the main reasons for this. Fast fashion results in the revamping of merchandise by brands every 2-4 weeks as compared to the two drops a year followed by traditional brands. Consequently, newness in category as well as freshness expectations of consumers have increased. This has meant a major upliftment for the industry since the frequency of purchase has increased majorly.Today’s fashion has become easily affordable for all the classes of the society because fast fashion brands ensure
- Thousands of styles, which can trace latest trends
- Extremely short turnaround time between when a trend is on the runway and when it hits stores
- Offshore manufacturing where labour is cheapest, with the use of workers on low wages, as well as complex supply chains with reduced visibility beyond the first tier and of subcontracting
- Limitation in the quantity of a particular garment, with new stock arriving in store every few days, shoppers know if they don’t buy something they like they’ll probably miss their chance
- Cheap and low quality materials where clothes degrade after just a few wears and get thrown away
This fashion accessories segment is marked by a lot of impulse purchasing. The increase in the buying power of consumers will increase the number of potential customers in the coming years, a number which is projected to cross more than 1.2 billion by 2020.
The purchasing behavior of Indian consumers are greatly affected by western tastes due to consumer inclination towards mix-n-match to build their wardrobes acting as a catalyst in the growth of the industry. With increased exposure to international runway trends, the Indian youth is becoming aware and conscious of the range of selection, prices and varied choices. They want higher quality products and are ready to pay for these products, a factor which will fuel more consumer growth.
The fashion accessory market keeps changing according to the latest trends which require the reconsideration of the consumers. It is important to meet the needs of consumers, depending on the ongoing developments in the industry.
Four major consumer requirements from fashion brands which will bring in more consumers include:
- Staying competitive in a uniquely crowded market
- Providing a seamless experience across all consumer touch-points
- Encouragement of brand loyalty with customers with infinite choices
- Investing in and delivering on personalization promises
INDIAN BUYING BEHAVIOR
Being a vast market, the most critical factor to determine consumer behavior in India is the ability to gauge trends in consumer purchase decisions. Consumers are rapidly evolving and adapting to the international fashion statements. Their buying behavior is driven by increasing incomes, exposure to international events and fashion icons, and rising confidence levels. Some of the basic consumer behavior that are expected to impact the Indian fashion market are:
Increasing Time-Poverty: India’s core consuming class is experiencing an ever increasing time-poverty. The richer section of the society are capable of outsourcing most of their activities to the poorer sections. These are the upper class who shop in specialty stores and own exclusive accessories by having a luxurious lifestyle. However, the middle income class is the worst-hit section, as for them it is a clear trade-off between the time required for their regular employment and the time needed for their general routine. Hence, time-poverty can easily impact the retail market.
Shift From Need-Based Purchasing To Aspiration- Based Purchasing: There was a time long back, when fashion accessories were purchased as and when there was requirement. However, nowadays, fashion clothing and accessories are more than basic needs; they are a reflection of aspiration, personality, and one of the biggest status symbols. It has become very easy for consumers to differentiate between branded and unbranded products. Though the basic textiles and footwear continue to be the part of consumer’s basket, the aspirational fashion clothing and fashion accessories demand has increased substantially in recent years.
It has become very easy for consumers to diﬀerentiate between branded and unbranded products. Though the basic textiles and footwear continue to be the part of consumer’s basket, the aspirational fashion clothing and fashion accessories demand has increased substantially in recent years.
Growing Value Consciousness: While consumers are willing to spend more on clothing and accessories of choice, the consciousness of value received for the money spent has increased manifold as well. The weak economic outlook and higher inflation rates are the main factors contributing to this heightened value consciousness.
Increasing Acceptance of Digital Technology:
Technology has become an inevitable part of consumer lifestyles. The increasing access to internet at a fairly-affordable cost, and the higher penetration of digital devices has influenced consumers’ buying patterns significantly. Today’s consumer has greater access to fashion products through various e-commerce websites and they can easily compare the products, prices, brand offerings, service levels, and most importantly the feedback/ opinions of a fellow consumer before making any purchase decisions.
Indian fashion accessory retailers have to continue realigning and restructuring their models to cater to the evolving needs of the dynamic market. The immense opportunity in the fashion market exists only for those who can visualize the future and reinvent themselves in order to address the associated challenges