Fashion Accessories, A Prospering Product Category
Fashion has been a significant segment in the evolution of Indian market, not due to its size but the way it has influenced the Indian lifestyle. And with the rising disposable income and consumer’s 'Look Good, Feel Good' attitude, fashion accessories are gaining popularity among consumers. Customers are evaluating their spending, more money get allocated to accessories as they are used more often and complete the look.
Market Size & Growth
The Indian fashion accessories market was worth US$ 3 billion, in 2013, and is expected to grow at a CAGR of 12 percent to touch US$ 6 billion by 2019. The market is largely dominated by unorganised players. Further, it is estimated that organised retail contributes only 16 percent to the bags, belts and wallets markets and 45 percent to the watches market.
Besides watches, bags, belts and wallets, other fashion accessories like shoes and jewelry are also expected to register high growth rates in India. Traditionally, Indian women have always used jewelry as a means to improve their look and as status symbols.
However, in recent years, the trend has shifted to the use of occasion-specific fashion jewelry featuring better design elements and weighing less. The lower levels of brand awareness within the Indian jewelry market signal a huge opportunity for organised players who can gain significantly by targeting this segment.
Robust economic growth and increasing spending power. Although India’s economic growth has slowed in recent years, the country still remains a promising emerging economy with a growth story that is expected to remain nearly intact over the short to medium run. With increase in economic activity, job opportunities and spending power have increased across the country which in turn has contributed to the heightened demand for fashion and fashion accessories.
Future of Accessories Market
For retailers and brands, the fashion accessories market in India will continue to present an opportunity to innovate and grow. The accessories market is no longer limited to urban women; it has penetrated to smaller cities and rural pockets as well. Also, apart from the women, Indian men have also become more conscious and aware about their fashion accessories.
The retailing and retail penetration strategy of organized fashion accessories players will have to keep pace with their fashion retail strategy. While some brands and retailers have first introduced fashion products and later followed these up with fashion accessories during the initial stages, in the years to come, many of them will consider establishing themselves as complete fashion solutions providers by introducing all fashion-related needs including fashion accessories right from the establishment of their brand or retail Outlet.
With the increasing penetration of corporatised retail, the accessories market will also witness the introduction of more styles and designs. Many Indian retailers and manufacturers will continue to blend the latest international fashion trends with traditional Indian styles to make their fashion accessories distinct and unique.
Succeeding in the Indian fashion accessories market will depend on the ability of players to innovate in order to attract consumers through design, style, and product offering.
Source : http://goo.gl/7sYmXg