Though a relatively small segment of the overall apparel industry in India, western wear is gaining ground among New Age woman. Women shoppers, from metros as well as small towns are gradually opting for western wear, which has pushed up sales of branded clothing. Rise in brand awareness, nuclear families, working women are some of the reasons driving the aggressive growth of this segment. Apparel brands and retailers are cashing in on this opportunity. In January, for instance, the Aditya Birla Group launched fusion and western wear label ‘Liva’ for women. As Manohar Samuel, President, marketing and business development at Birla Cellulose points out, though ethnic wear is popular in India, the company decided to bridge the gap in the market for western wear. He said that the women’s western clothing market is growing at 30 percent CAGR. Brands riding the growth wave: Experts estimate the growth rate of women’s western wear category between 40 and 50 percent a year. The reasons behind this growth momentum, is the advent of international labels and the growing popularity of e-commerce in the country. Women’s western wear accounts for 25 percent of the Rs 78,500 crores women’s wear market, as per a 2012 report by consulting firm Technopak Advisors. Keeping the prospects of Indian market in view, many global brands like Zara, Forever 21, among others have already entered the country. On the other hand, Swedish brand H&M is all set to invest Rs 700 crores in the country. And American brand Forever 21 plans to expand its retail network from existing six stores to 12 stores over the next 12 months. The overall women’s apparel market is currently ruled by ethnic wear which accounts for roughly 70-75 percent of all apparel sales. Western wear that has lower penetration vis-Ã -vis organized retailers, accounts for the remaining, says a report by Technopak. With the relatively lower penetration of brands, and the growing disposable income of modern women, this segment has become the focus of many Indian and international brands, the report added. Denim, innerwear, and tops/shirts/T-shirts are the high-growth categories within the women’s wear segment. Denim is growing at a CAGR of 17 percent with tops, shirts and T-shirts growing at 11 percent. Expanding presence to grab the market pie: Many existing Indian brands too are planning to expand their reach of women’s wear labels under their portfolio. Van Heusen from Madura Fashion and Lifestyle, for example will 10 standalone women’s wear stores over the next 12 months to its existing 10. The category is now witnessing growth at 40-50 percent year-on-year. Arrow, which introduced women’s formal wear in 2009 under Arvind Lifestyle Brands portfolio, has been witnessing sales growth of its women’s range at key account stores is much higher compared to men’s formal wear. It has seen formal shirts and trousers for women flying off the shelves and forming bulk of the sales at their retail chain. Even British retailer Marks & Spencer, which has closed to 40 stores in India, says women’s wear is emerging as one of the biggest category for them in India. The retailer’s women’s wear sales in India were up 32 percent in the April to September 2013 period. And Benetton India, which has aggressive plans in the country, is seeing women’s wear growing at a faster pace. As per the industry estimates, branded apparel attracts up to 45 percent margins and private labels are able to bring in even higher margins of about 60 percent. Experts point out that fashion is a promising business even online. Leading e-commerce players, Myntra and Flipkart, following very different business models, are vying to grab a big piece of the country's fashion retail pie estimated at 60 billion dollars (over Rs 37,000 crores), including online and offline apparel trade, most of which lies in the unorganised sector. Source: Article