Non-apparel lines drive growth for retail majors

Over the last few years, non-apparel categories or accessories have been posting far higher growth compared with apparel.

According to Govind Shrikhande, chief executive officer, Shoppers' Stop, non-apparel categories such as handbags, footwear and cosmetics have been on a high-growth curve, partly as a result of international trends coming to India and getting accepted more quickly today.

While there are no accurate numbers, industry estimates peg the growth of non-apparel categories at between 25 and 30 per cent over the last three years compared with apparels segment, which has grown by 10-12 per cent on a like-to-like basis.

Kunal R Sachdev, chief executive officer, Hidesign, attributes the growth to the increasing purchasing power as a result of the buoyant economy along with the awareness and availability of choice because of the changing retail environment.

"We also see propensity to spend as against the earlier conservative and traditional saving dominated environment. Easy finance have brought purchase decisions forward and younger money is creating the base for rapid growth in street fashion," he explained.

With the growing working women population, consumption opportunities for accessories have gone up, as a result of which it is not unusual to find people having a separate set of accessories for different times in a day and varying with the occasions.

While this may have always been the case, easy purchase opportunities with the growth of modern retail have led to an explosion of the trend.

Within accessories too, one non-traditional product, which has seen maximum growth (47 per cent in 2005) is mobile phones. Cell phones have, within certain consumer groups, moved away from being communication devices to fashion accessories.

According to T N Pratap, CEO, Bin Hendi, what's happening in the country is a reflection of international trends where accessories have grown faster than apparel, especially in the luxury segment.

In this segment, accessories are a cheaper way of buying into a brand and at the same time, it's possible to flaunt, say a designer handbag more often than a dress by the same one.

Going ahead, most people expect this growth in the category to sustain, especially with newer brands coming in and consumer awareness growing.