Value retailer V-Mart Retail Ltd is set to strengthen its focus on the Rs 1,000 apparel segment, leveraging the recent GST rate cut under the new GST 2.0 regime, which has spurred fresh consumer demand across India's value fashion market.
Under the revised tax structure effective September 22, 2025, the GST on apparel priced below Rs 2,500 has been slashed from 12% to 5%, a move that has made mid-range fashion products significantly more affordable for consumers in Tier 2 and Tier 3 cities-V-Mart's core market.
"The real savings are in this price bracket. Earlier, if a customer bought denim worth Rs 1,000, they paid around Rs 120 in taxes. Now it's down to Rs 50-a saving of Rs 70. That's a big differentiator," said V-Mart's Chief Financial Officer, in an interview.
He added that this reduction is helping retailers like V-Mart attract more shoppers in the Rs 1,000 price range, a category that had previously seen limited traction due to higher tax rates.
V-Mart plans to increase the share of its sub-Rs 1,000 apparel inventory from the current 15% to 20%, while expanding product variety based on customer response. The retailer, which operates nearly 500 stores across 300 cities, sees a major opportunity to tap price-sensitive consumers seeking fashionable yet affordable options.
"In the value retail segment, where the average selling price is around Rs 300-Rs 400, the GST change doesn't make a big impact. But at the Rs 1,000-Rs 2,500 range, the tax cut offers tangible savings that can drive higher conversions," the CFO explained.
Industry experts note that the GST 2.0 reforms are likely to reshape India's apparel retail landscape, giving a boost to value and mass-market brands. Retailers such as Zudio (Trent), Yousta (Reliance Retail), Style Up (Aditya Birla Fashion & Retail), DMart and Vishal Megamart are all expected to benefit from increased demand in the affordable fashion category.
Founded in 2002, V-Mart has long positioned itself as a value-driven retailer catering to India's emerging middle class. With the latest GST rationalisation, the company sees strong potential to expand market share in small-town India, where affordability and variety remain key purchasing drivers.
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