South India is expected to see aggressive store network expansions by various retail brands in the coming years due to a surge in consumption in the Southern states.
“Retail sales witnessed a 4 percent increase in December 2023 as against 2022, with the Southern region experiencing a 7 percent year-on-year hike,” a survey by the Retailers Association of India (RAI) said.
On the other hand, retail sales grew 3 percent each in North and West India and rose slower at 2 percent in East India. These figures have enticed retailers to expand in the Southern states.
“South is home to around 20 percent of the population. This translates to over 250 million people providing a massive consumer base,” Nitin Chhabra, CEO of Ace Turtle was quoted as saying by India Retailing.
“Due to well-established IT hubs in Bengaluru, Hyderabad, and Chennai and a higher rate of urbanization in South India, there is an increasing adoption of modern lifestyles, especially among the younger generation,” Chhabra added.
Ace Turtle is a tech-native retail company and is a licensee of global garment brands like Lee, Wrangler, Toys“R”Us, and Babies“R”Us for India and other South Asian markets.
The company intends to double its offline retail store count in India from 100 to 200 stores by the end of 2024, with 35 percent of stores planned in South India.
While per capita income in India has grown at a CAGR of 9.3 percent between 2013 and 2023, some southern states have managed faster income growth than the national average.
“Karnataka leads with a CAGR of 14.7 percent followed closely by Telangana at 13.7 percent,” as per a report by the Centre for Monitoring Indian Economy (CMIE) and the Press Information Bureau (PIB).
Another contributing factor to growth is the comparatively lower real estate costs in key Southern markets like Bengaluru, Hyderabad, and Chennai, in contrast to Mumbai and Delhi
Vedant Fashions, the ethnic wear player renowned for brands like Manyavar and Mohey, emphasizes the region’s tendency to exhibit consistent growth in wedding-related expenditures each year.
“South India signifies a thriving market for our business, aligning perfectly with our strategic focus on the wedding wear segment,” said Vedant Modi, chief revenue officer at Vedant Fashions Ltd.
The UAE-based Apparel Group, boasting a portfolio of brands including Aldo, Charles & Keith, Bath & Body Works, Victoria’s Secret, and Beverley Hills Polo Club too is gearing up for expansion in South India.
Indian Apparel.
