Comments
Sure they like to flaunt the latest smartphone or bike away for the weekend, but for college students and singles, trendy clothes, footwear and eating out matter more. So much so, that over 40 per cent of their spending is on these, says a study by Technopak Advisors.
Ever ready to experiment, this set sees value in fashion, styling, fit and convenience while buying clothes. Apparel brands are thus offering products with additional attributes at smart prices, says the study.
Apparels thin wallets by 17 per cent and footwear, which is now very much a part of the dress code, by another 8 per cent.
“Lifestyle activities such as eating out and entertainment only compliment the expenditure on fashion categories,” adds the study. Eating out and ordering in food account for 16 per cent of the youth brigade’s spending. By 2017, this number is likely to rise to 18 per cent.
DEMOGRAPHICS
Atul Chand, Chief Executive, ITC Lifestyle Retail Business, says a young population and rising affluence mean discretionary spending on categories such as apparel. “There is rising aspiration and youth is seeking lifestyle changes.”
Over the next five years, India is expected to add 22 million to the core consumer segment of ‘youth and young adults’ (15-34 years). This will further fuel the demand for fast-food apparel, and footwear.
Says Harkirat Singh, Managing Director of Aero Club (Woodland brand), youth want different shoes for different occasions now. “It is no longer about having the staid pair of black or brown shoes. They want several pairs in their wardrobe today.”
The segment’s increasing preference for eating out has come as a shot-in-the-arm for food chains. “Today, the reason for our existence and growth is the youth. Cafes give a non-intrusive and non-judgmental space, where they can hang out for long hours,” says K. Ramakrishnan, President – Marketing, Cafe Coffee Day. Not surprisingly, youth bring in 40 per cent of the company’s sales.
Ditto for Yum Restaurants (India), which owns the Pizza Hut brand. “Youth is pressured for time but is also value conscious. This leads to getting food delivered at home,” says Sanjiv Razdan, General Manager, Pizza Hut Delivery. Young adults contribute nearly 40 per cent to its sales and pizza, as a category, is growing along with the home delivery segment.
PUSH & PULL
Apart from the rising demand, supply-related factors such as the growth of malls and e-commerce sites are propelling sales of apparel, shoes and accessories. “E-commerce in footwear is doubling every year compared to our brick and mortar stores and it is youth which is buying from such portals,” says Aero Club’s Harkirat Singh.
ITC Lifestyle’s Chand agrees that on the supply side, the growth of organised retail is leading to easy availability and accessibility for several lifestyle apparel brands. Things will improve for youth-focused brands. “Rising urbanisation will further fuel the growth in this discretionary spend,” the study adds.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.