Cantabil Retail India Ltd, one of India’s leading apparel brands, charted its growth trajectory for the year 2020. Projecting an upward movement, the company is planning to expand its retail presence with 400 outlets by 2020. Currently, Cantabil has 290 stores and is present in 16 states across India.
Presently, Cantabil has 80% company-owned outlets and 20% is owned by franchisee partners. For the next phase of development, the company is planning to invest approx Rs 25 crore in Tier II and Tier III markets.
Deepak Bansal, Director of Cantabil Retail India Ltd, said, “The year 2019 has been a positive year for us and we are very hopeful to continue with the same growth momentum in the coming year. There is a significant increase in awareness about the fashion trend amongst the people in smaller towns and cities, and hence we see immense potential in Tier II and Tier III markets for our expansion. We are looking at offering the best of fashion and quality, and our target states are Maharashtra, Gujrat, Rajasthan, Uttar Pradesh, Madhya Pradesh, Bihar, Jharkhand, West Bengal and part of North East.”
The company clocked revenue of Rs 289 crore in the financial year 2018-19, and through this growth trajectory, the brand projects a 30% growth for the next fiscal year.
Indian Apparel Industry
Clothing, once looked upon as a necessity, has transformed into a lifestyle product. Subsequently, the apparel industry has been aptly termed as a potential sector poised for growth. With growing fashion consciousness among people, the apparel industry is getting the needed impetus to innovate.
According to IBEF, the Indian apparel industry is predicted to reach $223 billion by 2021, to become a massive industry for both existing and aspiring apparel franchise business owners. Moreover, the rising trends in sectors like franchising and retailing are further booming the Indian apparel industry, welcoming both national and international brands.
With changing demographics and consumer behaviour, both the production and consumption of apparels in India has become exceedingly high. Statistically speaking, India is one of the world’s largest producers of textiles and garments. The apparel industry contributes 2% to India’s GDP and employs 45 million people.
India: An Organised & Favourable Apparel Market
Entrepreneurs and franchisors’ journey towards running a successful apparel franchise business could become easy if the market is both organised and favourable for the investment. Meanwhile, India has proven itself to be a profitable business destination, welcoming various business ideas and concepts.
Growing penetration of organised retail and franchise, favourable demographics, and rising income levels are some of the factors that might be driving sales for apparel businesses in the present and near future. In fact, India has emerged as the second-largest exporter of textiles and clothing, where the Indian apparel industry production stood at around 58.1 billion square meters in FY19.