Value vs premium: Q3 shows sharp divide in apparel retail

THERE'S A DIVERGENCE SHOWING up in the financial performance of the country's top apparel retailers. While certain firms like Trent, Reliance Retail, V-Mart, and V2 Retail have reported robust growth in both topline and bottomline figures in Q3 of FY24, others such as Aditya Birla Fashion, Shoppers Stop and Vedant Fashions, the maker of the Manyavar brand of apparels, have posted weak numbers during the same period.

- VIVEAT SUSAN PINTO

A notable contrast arises between the top performers, particularly Trent with its Zudio brand and V2 Retail, both thriving as value-oriented retailers.

In contrast, Shoppers Stop, Aditya Birla Fashion and Vedant Fashions have established themselves as premium brands.

Reliance Retail stands out due to its diverse portfolio, ranging from value retail (Reliance Trends, Yousta) to premium and luxury segments under Reliance Brands and Ajio. V-Mart Retail, on the other hand, is also a value retailer operating in smaller markets across India.

Sector experts say that a growing base of consumers at the bottom of the pyramid, seeking branded products at affordable price ranges, is driving the growth witnessed by value retailers in India. At a broader level, a discretionary slowdown for almost a year now is hurting the business prospects of premium retailers, though some of them such as Shoppers Stop have launched value retail formats such as In Tune over the last few months.