The Indian apparel market is expected to be worth $60 billion by 2020.

 

In India, fast fashion brands including Zara, Mango and Vero Moda have a more upscale image than their home markets. However, Banana Republic will not compete with Zara or H&M but will instead clash with Inditex Group's Massimo Dutti that plans to enter the market soon. India offers an important platform to bring American casual style to consumers around the world.

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In comparison, Zara posted its slowest growth in India at 17% in FY16, indicating waning of its novelty factor and a few consumers shifting to global rivals such as H&M and Gap. To be fair, Zara’s sales have doubled every two years and touched Rs 741crore in FY16 . While experts feel H&M could also face a similar challenge, its large assortment and reasonable pricing could help sustain high sales.

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Global fashion company Hennes & Mauritz (H&M) turned profitable in its first year of operations in India and clocked significantly higher sales than largest rival Zara in its first year in the country. H&M’s Indian unit posted Rs 194 crore in sales during year-to-March 2016, with a net profit of Rs 1.4 crore. With just four operational stores last fiscal — the first one opened in October followed by another in November and two more in March itself — the Swedish retailer’s performance is the best that the retail market has seen within the apparel space. Spanish fast-fashion brand Zara, launched in 2010, earned Rs 149 crore during its first year of operations but with higher profit of Rs 22.5 crore. (Source-http://economictimes.indiatimes.com/articleshow/55301182.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst)

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