India Apparel Brands to Invest In Tier-II And Tier-III Cities

Amidst an increasing number of urban customers switching their wardrobe choices to global brands like Zara, Hennes & Mauritz, Forever 21 and the likes and the rising competition from global labels is prompting Indian companies to create new brands that are primarily focused on Tier II and III markets.

Manish Mandhana, whose company Mandhana Retail markets Salman Khan’s brand Being Human, had two years ago started a brand Breakbounce for the youth in Tier II and III.

Maish Mandhana said “It is targeted at the youth in Tier II, III markets who are becoming very fashionable. Smaller towns and cities are home to a chunk of India’s youth and they are exposed to global fashion, thanks to heavy penetration of internet and mobile phones. Also, the rapid growth of e-commerce is helping customers in smaller towns to keep pace in fashion with their counterparts in metropolitan cities like New Delhi and Mumbai.”

Arvind Brands’s Flying Machine sells in all cities of Rajasthan, Uttar Pradesh, upcountry in Maharashtra, West Bengal, Tamil Nadu, Andhra Pradesh and others. Now, Flying Machine is also expanding its foot print in Bihar, Jharkhand and other states Now the preference for brands is Tier II and III cities.

Alok Dubey, CEO, Lifestyle Brands Division, Arvind Brands said “These are cost effective markets where demography is better. We have the largest distributions in Tier II and III cities. In fact Flying Machine has presence in Tier III IV also. On top of that there is no competition from global brands like Zara, H&M and the list of influx of foreign labels is ever increasing as Japan’s Uniqlo, US-based Ralph Lauren and Abercrombie & Fitch among others are readying for India foray.”