Executive Summary

Introduction
Estimated to be worth more than US$ 500 billion, the Indian retail industry is considered as one of the worlds top five retail markets in terms of economic value. The industry is experiencing exponential growth, with retail development taking place not just in major cities and metros, but also in Tier-II and Tier-III cities. India's strong growth fundamentals along with increased urbanization and consumerism have opened up immense scope for retail expansion. Further, easy availability of Debit/ Credit cards has contributed significantly to a strong and growing online consumer culture in India. With the online medium of retail gaining more and more acceptance, there is a tremendous growth opportunity for retail companies, both domestic and international. Currently, the online retail penetration in India stands at around 60 per cent, according to a report by an industrial body

Market Size
The Indian retail market is expected to touch US$ 1.3 trillion by 2020 from its existing level of around US$ 500 billion. The foreign direct investment (FDI) inflows in single-brand retail trading during the period April 2000 September 2013 stood at US$ 97.29 million, as per data released by Department of Industrial Policy and Promotion (DIPP).

Apparel Industry in India

Rising fashion awareness and the desire to be perceived as in vogue has led to the rapid growth of apparel category. Brand conscious behavior; initially restricted to mens apparel with rapid urbanization has now caught on in the womens apparel line as well. Gradual shift from the traditional buy and stitch to readymade wear, for convenience and larger choice prompted the increase in purchase through departmental stores. This category is considered to be the pioneer of modern/departmental retailing and in its early days witnessed many manufacturers venture into front-end retailing. Over the years, these players have not only realigned their product offerings but have also moved towards providing other value added services. With the 2006 FDI policy allowing 51 percent investment in

single brand retailing, exclusive brand outlets have witnessed a rapid growth. Critical success factors would be to deliver affordable and accessible fashion, provide value added service to keep the consumer coming back for more. This growth is being driven by a number of factors: Increase in disposable income. As the lifestyles of Indias prospering urban consumers have evolved, their clothing needs have broadened, reflecting more varied usage occasions. Growth in the womens segment. Indian consumers are embracing the idea of fashion for its own sake, as a means of self-expression, and not merely as a functional purchase Total apparel sales volumes fell 2 per cent in 2011 and grew by a modest 2-3 per cent in 2012. Imposition of excise duty on branded apparels in 2011 along with a concurrent slowdown in economic growth badly hurt consumer sentiment and thereby impacted apparel purchases. However, volume growth has picked up since April 2013, attributable to the removal of excise duty and growth in demand from smaller towns. Apparel demand (in volume terms) is expected to grow by 4 per cent 2014. Branded apparels would grow at a much stronger pace, driven by increased presence of organised retail, rising disposable incomes, changing demographics and increasing brand consciousness. Major Indian players - Westside, Pantaloons, Shopper stop, Lifestyle, etc. Major foreign players - Zara, Forever 21, Marks & Spencer, Best Seller, etc.

Foreign brands in India

ZARA: Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia, and founded in 1975 by Amancio Ortega and Rosala Mera. It is the flagship chain store of the Inditex group, The worlds largest apparel retailer, the fashion group also owns brands such as Massimo Dutti, Pull and Bear, Uterqe, Stradivarius and Bershka. Zara is one of the largest international fashion companies. It belongs to Inditex, one of the worlds largest distribution groups.The customer is at the heart of their unique business model, which includes design, production, distribution and sales through our extensive retail network. It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10,000 new designs each year. Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. This has increased the idea of Zara as a fashion imitator company and low cost products. Lack of advertisement is also in contrast to direct competitors such as Uniqlo and United Colors of Benetton.

FOREVER 21: Forever 21 is an American chain of clothing retailers with branches in major cities in America, Europe, Asia, and the Middle East that offers clothing and accessories for young women, men, and teen girls. Originally known as Fashion 21, was intended at first for mostly kids and teens. The store was founded in Los Angeles, California in 1984 by Do Won Chang and his wife Jin Sook Chang. The first Fashion 21 store opened on April 21, 1984.The store sized at only 900 square feet. It is still in operation and bears the chain s original name. Trendy designs

seen in South Korea were sold and targeted to the Los Angeles Korean American community. The