About Baazar Style Retail Limited

Style Baazar has emerged as a go-to hotspot for fashion aficionados in search of trendy and affordable clothing.Alongside our exclusive brand, Express Baazar blends fashion with convenience through our “Quick Shop. One Stop.” philosophy. Their offerings are bifurcated under the apparels and general merchandise verticals. Within the apparels vertical, they offer garments for men, women, boys, girls and infants, whereas their general merchandise offerings include both non-apparels and home furnishing products. Their target customer segment is the aspiring middle class comprising of households with an average annual income of less than 5,000 USD, comprising of fashion conscious, value and quality seeking youth and young families, which forms the bulk of purchasing power of the Indian population. They focus on providing a family-oriented shopping experience, offering quality products and strive to offer every Indian stylish merchandise at an affordable price. By providing a family-oriented shopping experience, they are a one-stop shop catering to the requirements of the entire family by providing a quality product portfolio at an affordable price. 

Style Baazar strives to impact the sustainable development of a society where the stores are present by infusing the collaborative Spirit and passion in their employees who work with integrity so that customers can be given a delightful experience whereby creating value for the organization and also for all stakeholders by DOING THE RIGHT THINGS.

They strive to attain market leadership across the aspiring real India by providing quality and a unique product mix at a value for money price and creating a great shopping experience for the customers.

Apparel and Footwear Market in India
The Apparel market in India was valued at INR 54,76,275 Mn in FY 2023 and is expected to grow at a CAGR of ~18.2% between FY 2023 and FY 2027 to reach INR 1,06,82,500 Mn by FY 2027 on the back of factors like higher brand consciousness, greater purchasing power and increasing urbanization. The market is estimated at INR 68,45,344 Mn for FY 2024 growing at a CAGR of ~25% from FY 2023. Value Apparel which constitutes Mass and Economy products contributed to ~54% % of the total Apparel market in FY 2024.

Apparel and organized Apparel retail are expected to grow at CAGR of 23.2% and 25.3% respectively in the same period, i.e., the growth of both branded Apparel and organized Apparel in Apparel category will outpace the overall market growth. The share of branded apparel and organized apparel is estimated at 56% and 45% respectively for FY 2024.

The share of organized retail in Apparel has witnessed a steady increase over the past years. The share of the organized sector in Apparel was 28.0% in FY 2018 and increased to 32.0% in FY 2020 and 45.0% in FY 2024 and is projected to reach 48.0% by FY 2027.

Men’s Apparel constituted ~40% and Women’s Apparel share was estimated to be ~37% of the total Apparel market in FY 2024. The balance of ~23% was contributed by kids’ Apparel. Out of the total Apparel market, Ethnic wear accounted for ~30% or INR 20,40,743 Mn (FY 2024) and the balance ~70% of the market comprised western wear at INR 48,04,601 Mn. The high share of Ethnic wear in the total Apparel is a unique feature of the Apparel market in India. In the women's wear market, Ethnic wear contributed ~67% (FY 2023) to the total market and is expected to be the fastest growing segment in the Ethnic Apparel market. However, for men and kids, the contribution of Western wear is significant.

The Apparel market comprised ~30% Ethnic wear in FY 2024 and ~70% Western wear at INR 20,40,743 Mn and INR 48,04,601 Mn in size respectively. This market is dominated by the unorganized sector which was~ 74% of the Ethnic wear market and ~62% of the Western wear market for FY 2023. 

In the men’s segment, Ethnic wear accounted for ~6% of the total menswear market of INR 27,72,232 Mn for FY 2024, while in women, Ethnic wear held a significant share of ~67% of the total INR 25,82,482 Mn womenswear market for FY 2024. This implies that women's Ethnic wear is the mainstay of Ethnic wear in India. The Men Ethnic wear market is expected to reach INR 2,65,310 Mn by FY 2027, from INR 1,39,920 Mn in FY 2023, growing at a CAGR of 17.3%. The Women's Ethnic wear market is expected to reach INR 26,10,610 Mn in FY 2027, from INR 13,45,470 Mn in FY 2023, growing at CAGR of 18.0%.

Western wear market accounted for close to ~70% of the overall Apparel market, with western wear market size of INR 48,04,601 Mn for FY 2024. The organized sector constituted a 36% share of the Western wear market, while the unorganized sector was 64% in FY 2023. Western wear continues to dominate the Men’s wear market with a ~94% share for FY 2023. It is expected to grow at a CAGR of 18.0% from FY 2023 to FY 2027, reaching INR 40,58,047 Mn in FY 2027. The western wear market for women amounted to INR 6,62,834 Mn for FY 2023 and is expected to grow at a CAGR of 20.0% to reach INR 13,74,453 Mn for FY 2027.

The domestic Footwear retail market in India estimated at INR 7,61,110 Mn in FY 2023 and estimated to be at INR 9,53,560 growing at a CAGR of 25.3% from FY 2023 to FY 2024 is projected to grow at a CAGR of 15.8% to reach INR 14,81,200 Mn by FY 2027. India is one of the largest producers and consumers of Footwear in the world, generating employment for over 2 million people. Men’s Footwear currently dominates this market with ~48% share in FY 2023, however growth in the women’s Footwear segment will outpace the growth in men’s to account for an almost equal share by value in FY 2027 against the current share of ~41%. While the unbranded segment accounted for ~51% of the total market in FY 2024, the branded segment accounted for ~49%, and the share is expected to reach ~52% for branded and ~48% for unbranded segments by FY 2027.

In FY 2024, the organized Footwear retail signified by exclusive brand outlets (EBOs), large format stores (LFS) and e-commerce contributed a share of ~36.5% by Value to the total Footwear retail market, corroborating the greater throughput of premium products through organized channels. Growing at a rate of 21.4% from FY 2024 to FY 2027, well above the growth rate of the overall category, organized retail is expected to gain a share of ~42% by value in the next three years. The Footwear segment is characterized by higher branded play compared to other lifestyle categories. The branded segment, projected to grow at a rate of 18.1% by value from FY 2024 to FY 2027, and is expected to exceed the share of the unbranded segment by FY 2027.

Home & Living Market
The Indian Home & Living market was valued at INR 30,32,000 Mn. in FY 2023 and at INR 35,78,300 Mn in FY 2024E, with aa growth rate of ~18%. The market has grown with a CAGR of 10.3% from FY 2018 to FY 2020 and is projected to grow at a CAGR of ~13%% from FY 2024 to FY 2027 to reach INR 51,62,000 Mn. by FY 2027.

Indian Costume Jewellery Market
The Indian Costume Jewellery market was Valued at INR 2,79,000 Mn. in FY 2023 and is expected to reach INR 3,34,600 Mn in 2024. The market has shown consistent growth since FY 2018 with a CAGR of 12.6% from FY 2018 to FY 2020. Due to the spread of the Covid-19 pandemic, the market suffered a de-growth of -0.5% from FY 2020 to FY 2022. Making a steady recovery, this was followed by an impressive CAGR of 25.1% in FY 2022- 23. It is projected to grow at a CAGR of 14% to reach INR 4,96,000 Mn. by FY 2027.

Majority of the revenue in the mid to luxury Costume Jewellery segment is contributed by organized retail (95- 100%), except the economy or mass segment where unorganised or unorganized retail plays a key role with close to 85% revenue contribution.

Indian Bags & Luggage Market
The Indian Bags & Luggage market was valued at INR 2,27,000 Mn. in FY 2023 and estimated at INR 2,52,000 Mn in FY 2024. It has grown with a CAGR of 11.5% from FY 2018 to FY 2020 but due to Covid impact in terms of colleges, weddings, offices etc. being suspended, the Indian Bags & luggage market witnessed de-growth of 9.9% from FY 2020 to FY 2022. However, the market is expected to grow with a CAGR of 11.4% to reach INR 3,48,300 Mn. by FY 2027. 
Bags segment (51%) leads the contribution in terms of revenue followed by hard luggage (25%) and soft luggage (24%) in FY 2023, and a similar trend is expected to be witnessed over the next 5 years. In terms of growth, from FY 2018 to FY 2020, hard luggage was leading the market (CAGR 15.8%), followed by soft luggage (CAGR %) and bags (CAGR 8.3%). By FY 2027, a similar trend is projected with hard luggage continuing to grow at the highest pace (CAGR 14.2%), except bags (CAGR 10.9%) outpacing the growth of soft luggage (CAGR 9.4%) due to a higher purchase rate.

In terms of region-wise contribution of the bags & luggage market, the northern part of India dominated and contributed the majority of revenue (27%) followed by the western (26%), southern (25%) and eastern (22%) for FY 2024. 

Value Retail in Lifestyle and Home Segment
Value Retail can broadly be classified as the retailing of merchandise at price points that are affordable to the consumer segments with high sensitivity to price. Price sensitivity exists across customer segments viz. highincome customer segment’s price sensitivity towards a brand of car beyond a certain price or the mid-income customer segment’s price sensitivity towards a piece of jewellery or footwear. In the need-based categories like food & grocery and FMCG, it is difficult to slice the market between Value and non-Value retail based on this behaviour because the price points and SKUs carry extensive overlaps at the retail point of sale. 

Categories like Apparel, Footwear, Accessories, and Home (termed as discretionary non-food retail) witness the trend of Value retail that can be measured and expressed more distinctly. These categories form the Lifestyle (Apparel, Footwear, Accessories including Watches) & Home segment. SKUs of fast-selling goods sold at a certain price point or lower within these categories in a modern retail environment aggregate to represent organized Value retail. 

The overall Lifestyle and Home Value retail market in India was valued at INR 65,92,911 Mn for FY 2024E, which was 54% of the total market in these categories of Lifestyle & Home. The market is expected to reach INR 97,20,583 Mn by FY 2027, growing at a CAGR of 13.8% from FY 2024-27.

Value LFS players like Style Baazar with a total estimated addressable market of Rs. 65,92,911 Mn in FY 2024 are well-positioned to capture significant market share of the fast-growing categories under the Apparel segment for men, women, and children, as well as other non-Apparel categories such as Appliances, Toys, Luggage Containers, Home décor, Perfumery, Sunglasses, and Bed Linen. 

The overall Lifestyle & Home Value retail market grew at a CAGR of 19.3% from FY 2022 to FY 2024E, with a market value of Rs. 65,92,911 Mn in FY 2024. The market is further expected to grow at a CAGR of 14.4% from FY 2023 to FY 2027. This growth presents a promising opportunity for Value retail players like Style Baazar to capitalize on the expanding market and strengthen their competitive advantage.

BAAZAR STYLE LIMITED COMPETITIVE STRENGTHS
1. One of the fastest growing value retailer in eastern India with a market share of 3.03% and 2.22% in the states of West Bengal and Odisha, respectively in organized value retail market
2. Accelerated store expansion through a cluster-based approach
3. Strong understanding of customer preferences to offer a comprehensive, targeted and affordable product mix along with our private label brands leading to customer loyalty
4. High operational efficiency and lean cost structure due to strong focus on business processes and automation
5. Targeted marketing and promotion activities enabling increasing brand salience and garnering customer loyalty
6. Experienced promoters and a strong management team with a proven track record, backed by investors
7. Strong financial track record of growth

BAAZAR STYLE LIMITED STRATEGIES
1. Expand profit margins and increase revenue contribution from their private labels. Focus towards creating differentiation and achieving greater control over product quality of private labels
2. Strengthen their market position by increasing penetration in existing clusters, expand our footprint in the Focus Markets, increase focus on customer retention and garnering brand loyalty
3. Continue to invest in their technology adoption initiatives, data analytical capabilities and implementation of omni-channel retailing business model
4. Continue to invest in strengthening their supply chain management and human capital to further reduce their operating costs

BAAZAR STYLE LIMITED RISK FACTORS & CONCERNS
1. Geographical Concentration of Business:Their stores are concentrated in the eastern parts of India and any adverse developments affecting their operations in this state could have an adverse impact on their revenue and results of operations.
2. Products Concentration: Their business is concentrated on sale of their apparel and merchandise products and subject to the unpredictability of changing customer preferences.
3. They follow a cluster-based expansion model which leads to a concentration of their business in a relatively small area.
4. The growth of their business depends on an agile and efficient supply chain management and their inability to maintain an optimal level of inventory in their stores may impact their operations adversely.
5. They are significantly dependent upon third party contract manufacturers for their private label brand apparel.
6. One of the entities forming part of their Promoter Group, Boast Traders Private Limited (formerly known as Acme Private Limited) (“Boast Traders”) has received a show-cause notice from the Reserve Bank of India.