Although still in its nascent stages, Delhi’s fashion industry is going through a boom, as the city’s population becomes more style conscious than ever. The growth trajectory, however, may tilt in favour of international fashion labels, which are rapidly penetrating the fashion markets of Delhi, experts say. While the annual internal expansion of 10% in India for the industry is pretty rosy, the large influx of foreign brands has become a cause for concern for the domestic fashion brands, as they are aware of the deep pockets of these large-sized international players who can easily pay for the increasingly costly retail spaces. Exporting Indian brands to international markets is also not very profitable anymore due to continuing strengthening of the Indian rupee in the currency markets.
The leading fashion designers of India, who are largely concentrated in Delhi, believe that 2008 is going to be a critical year for them, as their strategy to counter the external threat would be put to test. Newcomers are expected to especially face the heat, as they will find it difficult to get the much needed retail space. Some experts, however, suggest that the markets would be able to distinguish between good and not-so-good fashion designers and the ones offering good quality would manage to survive. Experts also expect the Indian fashion markets to become more realistic and fair in terms of prices. The markets are expected to grow and become scattered at the same time, however, due to the entry of more players and it would take a while before the dust settles and the picture becomes clearer.
Still, there are industry insiders who believe Indian designers would enjoy the upper hand over their foreign counterparts due to the detailed and intricate understanding that only they can have of the domestic Indian consumers and also because only they have the required access to Indian crafts and skills, whereas the international brands would have to start from scratch.