Introduction: Optimism around the New Year

• Like with every new beginning, this New Year also brings with it a lot expectations and hopes.
• 2010 much more special than any new beginning, because it rings in optimism, improved consumer sentiment and business growth after the financial debacle of 2008-2009.
• Trends looking up already, we can look forward to an eventful 2010.

India growth story

• Quick bounce back from the economic slowdown - We are in solid ground for a great performance drive not just through this year but in the long-term.
• A long-term outlook to business and focus on consumer benefit backbone to India's resilience.
• At the heart of the India growth story is its population, the generators of wealth, both as producers and consumers. With the largest young population in the world - over 890 million people below 45 years of age, India indeed makes a resplendent market. The country has more English speaking people than in the whole of Europe taken together. As the economy grows so does India's consuming class. It is estimated that 140 million Indians will earn a salary of over USD 20,000 by 2011. The number of effective consumers is expected to swell to over 600 million by this time - sufficient to establish India as one of the largest consumer markets of the world

Global economic meltdown & India

• Genesis in short-term outlook in the U.S. housing market and the credit crisis.
• When global economies like US, Japan, Germany and France contracted, India recorded a 6.7 percent growth with projections to touch 7-7.75percent this financial year.
• India did liberalise, to create long-term value for customers and businesses alike. Thus, even temporary fall in disposable incomes & consumer spending, driven by the economic slowdown is now looking up, and quickly.
• In terms of international tourist spending, India is the fastest-growing market in Asia Pacific, according to the Visa Asia Pacific release. The Indian economy is expected to grow larger than Britain's by 2022 and Japan's by 2032, to become the third-largest economy in the world after China and US, and finally become the second largest economy after China by 2050, so the global economic forecasts say.
• Healthy investment climate

Retail Impact

• With markets bouncing back and consumption on the rise, the challenge now is to draw consumers towards modern retail concepts.
• Some of the most innovative distribution techniques in the retail sector were developed during slowdown period.
• Throughout 2009, the one fact that became clear was that the Indian market was resilient. Now, as the global economic condition stabilizes, confidence levels of brands and retailers in India have also improved.
• Retail business was one of the most affected in the downturn - sector innovated with Franchise-retail models and penetration in smaller towns. Raymond opened over 500 retail units in class IV, V towns.
• Several leading brands offered discounts and clearance sales including innovative, sustainable retail formats to provide a customer proposition and improve consumerism.
• Retail rents were corrected - Malls come up with a daily rental plan for retailers to help them maximize return, and in some places, rentals were linked to sales generated by the stores.

Rise of the small town man

• Retail phenomena - change in focus from "the rise of the common man" in the past decade to the "rise of the small town man" in the current decade.
  • Retail expansion to class IV and V towns
• Small town consumer like the urban Indian is brand-conscious -demand for branded merchandise; need to look "good" & "fashionable"; trend to look for "change", "newness" all the time be in mobiles, watches, apparels or any other category including food
• Leisure and travel of the humble Indian growing beyond cinema halls to playstations, night life and overseas travel.
• Proves that the fasion industry is growing beyond just fashionable clothes to fashionable living…
• Small town and urban consumers are spoilt for choices alike
• Retail and fashion outlook for the Indian consumer is all about a good lifestyle.

Long-term sustainability & Customer Proposition

• We need to understand our customers a bit more closely to sustain our businesses in the long-term.
• Need to understand characteristics of the Indian customer - to give them a need to buy and a value proposition.
• one thing that lasts throughout with a consumer is an 'Emotional Connect'
• Affluent male consumer:
  • Clothing is reflective of lifestyle and social status, and thus prestige-linked advertising is very successful in creating aspirational value in his mind.
  • Apparel selection: Male consumer goes by six influencing factors before a buying decision - brand, quality assessment, discount and bargain, design and style, price and customization, and size specification.
• Female consumer

• Although a majority of women preferred to wear a mix of traditional Indian, Indian-inspired, and western apparel to work, western apparel is the main preference at home or during casual gatherings with friends.
• During social and family gatherings, a majority of the women preferred traditional Indian apparel.
• Apparel selection: Indian female consumers are best categorized as style-design seekers represented through three clusters.
• Consumer classification and characteristics analysis: Clear differences inthe way a male and female consumer reacts. But, we do not have differences in the way an urban consumer looks upon fashion as compared to his small town counterpart!
• Rural market is projected to dominate the retail industry landscape in India by 2012 with total market share of above 50 per cent.

Conclusion: Building a sustainable World

• Renewed optimism to make our businesses sustainable in the long-term by carrying our customers along in the success story needs to be combined with building a sustainable world.
• To provide not just a fashionable tomorrow for our children but a safe one.
• With innovative clothing and distribution techniques to survive a global meltdown, we sure can find innovation supporting us to build a green world.

It is indeed fashionable to go green with innovation in clothing manufacture and design for long-term businesses, customers and a smiling earth!