India’s retail space consumption is indeed largely driven by the fashion and apparel industry. The fashion and apparel industry is one of the largest and fastest-growing segments of the Indian retail industry, accounting for a significant share of the total retail market.
There are several factors that contribute to the dominance of the fashion and apparel industry in India’s retail space. First, India has a large and growing population, with a significant portion of the population falling within the middle-income bracket. This has led to an increase in disposable income, which in turn has boosted consumer spending on fashion and apparel.
Second, the rise of e-commerce platforms and digital payments has made it easier for consumers to purchase fashion and apparel products online, leading to a significant increase in online sales. This trend has further accelerated during the COVID-19 pandemic as more consumers have shifted to online shopping.
Third, the fashion and apparel industry in India is highly fragmented, with a large number of small and medium-sized enterprises operating in this space. This has created a highly competitive market, with players competing on price, quality, and design.
Finally, the Indian government has also taken several initiatives to boost the growth of the retail industry, including the introduction of the Goods and Services Tax (GST), which has simplified the taxation system for retailers and improved the ease of doing business in the country.
Overall, the fashion and apparel industry is a key driver of India’s retail space consumption, and is expected to continue to grow in the coming years.
Anshuman Magazine, Administrator and President, India, South-East Asia, Center East and Africa, CBRE said, “The Indian retail area is recuperating, and we guess that it will keep on picking up speed through 2023. Indeed, even in the midst of troublesome worldwide financial circumstances, global brands are growing in Level 1 urban communities as well as entering Level 2 and Level 3 urban communities as they consider India to be a possible market.”