Accessories a big draw for leading brands
Accessories are now becoming a mainstream segment for many leading brands in the country, as they hope to make a mark in this largely unorganised segment.
By Shruti Sabharwal, ET Bureau |
BANGALORE: Accessories are now becoming a mainstream segment for many leading brands in the country, as they hope to make a mark in this largely unorganised segment. While players like Titan and Raymond have launched separate formats to target customers across age groups, with products such as bags, belts and shoes, others like Fossil are introducing newer categories.
Although, it���s difficult to ascribe a value to the accessories market due to its fragmented nature, some experts say it may be around Rs 3,000 crore, growing at 15-18% per annum. The branded segment, in particular, is seeing a growth of 25% as customers have become more aware and aspirational. Most brands viewed accessories as a second-rung category ��� a line extension to the core business ��� that is prone to impulsive purchases.
According to Shreyas Joshi, president, Raymond Apparel, the company has been recording over a 30% y-o-y growth in the accessories segment. Currently, accessories contribute 5% to the total business and the company expects this to go up to 10% in the next two years.
The company, a subsidiary of Raymond, is planning to open 100 stores under its new chain Neckties & More. The products, which will range from small leather goods to ties, tie-pins, belts, cufflinks, bags, pocket squares, cravats, shoes and innerwear among others, will be available under Raymond���s menswear brands such as Park Avenue, Parx, Raymond Finely
Crafted Garments and Manzoni. ���We are adding leather products like belts, bags and wallets for men. We believe the market is large with almost no competition,��� Fossil India head Vasant Nangia said.
The only established leather brand in India so far is Hidesign. For Fossil, the accessories segment is a bigger revenue generator in the US compared to watches, and India may also throw up a similar story in a few years, Mr Nangia said. ���Accessories can be the first introduction to new brands for most people, which is why more companies are increasing focus on this segment,��� he added.
Pure-play retailers, too, are increasing offerings in these categories. At Aditya Birla Nuvo���s luxury format, The Collective, for instance, there are 20 accessories brands, compared to 35 apparel brands, ���Accessories are the first acquisition in an emerging market, as people change their bags, shoes and watches more readily,��� George Santacroce, CEO of The Collective said.
Although, it���s difficult to ascribe a value to the accessories market due to its fragmented nature, some experts say it may be around Rs 3,000 crore, growing at 15-18% per annum. The branded segment, in particular, is seeing a growth of 25% as customers have become more aware and aspirational. Most brands viewed accessories as a second-rung category ��� a line extension to the core business ��� that is prone to impulsive purchases.
According to Shreyas Joshi, president, Raymond Apparel, the company has been recording over a 30% y-o-y growth in the accessories segment. Currently, accessories contribute 5% to the total business and the company expects this to go up to 10% in the next two years.
The company, a subsidiary of Raymond, is planning to open 100 stores under its new chain Neckties & More. The products, which will range from small leather goods to ties, tie-pins, belts, cufflinks, bags, pocket squares, cravats, shoes and innerwear among others, will be available under Raymond���s menswear brands such as Park Avenue, Parx, Raymond Finely
Crafted Garments and Manzoni. ���We are adding leather products like belts, bags and wallets for men. We believe the market is large with almost no competition,��� Fossil India head Vasant Nangia said.
The only established leather brand in India so far is Hidesign. For Fossil, the accessories segment is a bigger revenue generator in the US compared to watches, and India may also throw up a similar story in a few years, Mr Nangia said. ���Accessories can be the first introduction to new brands for most people, which is why more companies are increasing focus on this segment,��� he added.
ADVERTISEMENT
Titan has launched a retail chain under its Fastrack brand, under which it plans to open 50 stores in one year to cater to the youth. Apart from Fastrack watches and sunglasses, the stores will retail belts, bags, wallets and wristbands with plans for other categories like headgear and footwear underway. Pure-play retailers, too, are increasing offerings in these categories. At Aditya Birla Nuvo���s luxury format, The Collective, for instance, there are 20 accessories brands, compared to 35 apparel brands, ���Accessories are the first acquisition in an emerging market, as people change their bags, shoes and watches more readily,��� George Santacroce, CEO of The Collective said.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
