Fashion Takes To Tier II & Beyond

With the blurring of seasons, value fashion taking centrestage and luxury brands making beeline, upcountry markets are witnessing a major makeover.

- Amit Singh and Shwetha Satyanarayan

At a typical weekend, Sanjay Place, a commercial and retail hub in Agra, is bustling with shoppers who are spoilt for choice for their apparel purchases. The area is lined up with scores of exclusive showrooms of national and international clothing brands. While Tier II customers, like those in Agra, are traditionalists when it comes to retail therapy who prefer to visit local markets like Raja ki Mandi and Sadar Bazar, Sanjay Place and its ilk have emerged as major hubs for apparel purchases. Replicate the above picture across India, and the fashion retail boom across the country becomes all too visible in Tier II and Tier III cities bulging with middle class population with disposable incomes. Fashion clothing is a reflection of growing aspirations here. The popularity of malls in smaller cities such as Indore, Surat, and Kochi means brands are rushing to cater to these markets.

Their optimism is not misplaced as spending on clothes has grown an estimated 181 per cent during 2010 to 2018. While men’s clothing continues to be the biggest chunk of the apparel market at 41 per cent, women’s wear contributes almost 38 per cent, and is largely dominated by ethnic apparel such as sarees and suits. Kids’ wear with 21 per cent of the overall market is the fast growing segment.

Tier II and Tier III markets make real business sense for fashion retailers as real estate costs in these markets are 30-40 per cent lower than those in metros and Tier-I cities. Experts opine that these markets are still unexplored and competition is less as of now.