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Apparel retail in India to grow to Rs 16 lakh crore by FY30: CareEdge Ratings

19 January 2026, Mumbai

The apparel retail sector in India is on a trajectory to reach Rs 16 lakh crore ($193 billion) by FY30, according to the latest 2026 report from CareEdge Ratings.

This valuation represents a nearly twofold increase from the Rs 9.30 lakh crore estimated for FY25. The market's expansion is fundamentally driven by a structural shift toward the organized sector, which is projected to grow at a CAGR of 10–13 per cent, outstripping the broader industry.

As of early 2026, the organized segment accounts for 41 per cent of the total market, up from approximately 32 per cent just four years ago, signaling a definitive move away from unorganized trade.

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The value-fashion engine and tier-II expansion

The most critical commercial catalyst is the ‘Value Fashion’ segment, which is forecast to grow at a 7 per cent CAGR to reach Rs 5.0 lakh crore by FY30. Leading retailers, including Tata’s Zudio, Landmark Group’s Max Fashion, and Reliance’s Yousta, are aggressively capitalizing on this trend by penetrating Tier-II and Tier-III cities.

These regional hubs are emerging as high-consumption centers due to rising disposable incomes and the increasing ‘brand consciousness’ of suburban consumers. Strategic store expansions are now primarily focused on these regions, where operational costs are lower and market saturation is minimal compared to metropolitan areas.

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Digital maturity and fiscal tailwinds

E-commerce is set to command a 25 per cent share of the organized market by 2030, translating to a Rs 5.0 lakh crore digital economy. This growth is boosted by the 2026 maturation of omnichannel strategies, where traditional brick-and-mortar stores function as micro-fulfillment centers.

Additionally, recent fiscal policies are favoring the affordable segment; apparel priced below Rs 2,500 now attracts a lower 5 per cent GST rate, enhancing volume play for value retailers.

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Despite temporary 2025 headwinds from inflationary pressures and climatic disruptions, the sector recorded a strong recovery during the recent wedding season, with consumer sentiment rebounding toward branded, structured retail formats.

CareEdge Ratings is a premier Indian credit rating and research firm. It provides analytical oversight for over 1,500 entities across textiles, retail, and finance.

It monitors the transition of India’s retail sector from unorganized fragmented trade to a high-efficiency, technology-led organized marketplace targeting 13 per cent annual growth.

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Tarun Tahiliani embarks on a high-velocity expansion; eyes Rs 600 revenue by 2027

17 January 2026, Mumbai

Celebrating three decades in the fashion industry, ace couturier Tarun Tahiliani is executing a high-velocity expansion strategy to transition his brand from a studio-led model to a retail powerhouse. The designer aims to hit a revenue scale of Rs 600–700 crore by the next fiscal year, primarily driven by his ready-to-wear and premium lines.

While his signature couture remains intentionally limited by its artisanal nature, Tahiliani is betting on Tasva, his menswear partnership with Aditya Birla Fashion and Retail (ABFRL), and OTT, his western separates label, to penetrate the burgeoning Indian mid-luxury segment.

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Industrial scalability via corporate machinery

The core of this growth lies in the ‘systems-driven’ approach provided by ABFRL. Tasva has achieved an unprecedented scale of 80 stores in just four years, leveraging factory-led manufacturing to maintain quality at accessible price points. Tahiliani notes that this corporate synergy allows the brand to travel beyond traditional luxury enclaves into India’s mall-led, hyper-visual ecosystem. Simultaneously, the OTT brand is rapidly scaling its physical footprint; currently operating five stores, it is targeting 10–15 profitable outlets by the end of the next financial year.

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The resilience of physical luxury in 2026

Despite the digital acceleration in Indian fashion, Tahiliani remains unequivocal about the necessity of brick-and-mortar presence for high-end luxury. The 2026 consumer, described as highly ‘reference-aware’ yet disconnected from traditional tailoring, demands tactile proof of quality.

To address this, the brand is integrating hybrid models - sending curated racks to clients and offering personalized home trials - while maintaining flagship experiences that serve as authenticity hubs.

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As imitation in the fast-fashion segment intensifies, the designer is also tightening intellectual property protections to safeguard his "India Modern" design language.

Tahiliani Design specializes in luxury couture and ready-to-wear characterized by the ‘India Modern’ aesthetic. Since opening India's first multi-designer boutique, Ensemble, in 1987, the brand has expanded into interiors, fine jewelry, and bridal wear.

Growth is currently fueled by a strategic 80 per cent stake from ABFRL in the Tasva entity, targeting a Rs 4,000 crore turnover for the broader ethnic portfolio within five years.

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Newme expands with launch of three stores in a day

17 January 2026, Mumbai

The Indian Gen Z fashion landscape is witnessing a structural realignment, with Tier II and Tier III cities projected to drive 70 per cent of total fashion e-commerce sales by late 2026.

Capitalizing on this ‘hinterland’ growth, Newme has launched three strategic outlets in Jaipur, Surat, and Pune in a single day.

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The Jaipur flagship at Vaishali Circle notably introduces a 3,000 sq ft two-floor experiential format, featuring a dedicated content creation zone.

This move addresses a critical consumer insight: while digital discovery remains dominant, 45 per cent of demand for aspirational apparel now originates from non-metro urban clusters where tactile engagement and ‘touch-and-feel’ remain vital for brand loyalty.

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Quick commerce and the ZIP revenue engine

Beyond brick-and-mortar, Newme is aggressively scaling its ‘Newme Zip’ 24x7 delivery service to meet the Gen Z ‘need-it-now’ mindset. Currently active in Delhi and Bengaluru, Zip has seen its penetration hit 20 per cent-25 per cent in select catchments, prompting an imminent rollout in Pune and Mumbai.

The strategic intent is clear: to fuse high-street retail with ultra-fast delivery. Sumit Jasoria, CEO, Newme, notes, offline stores now contribute 22 per cent of overall business, but the goal is a 60:40 online-to-offline revenue split by 2026-end, supported by an annual run rate target of Rs 400 crore. AI-led supply chains and manufacturing capex.

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To support this rapid omnichannel expansion, the brand is doubling its Mumbai manufacturing capacity from 1.5 lakh to 3 lakh pieces monthly.

This scalability is powered by an AI-led supply chain that maintains a low-inventory model, crucial for navigating the 10.5 per cent projected revenue increase in India’s apparel sector for FY26.

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Backed by a recent $12 million Series B funding round - valuing the firm at approximately Rs 988 crore - Newme is positioning its tech-heavy operational structure to challenge global fast-fashion incumbents by offering localized, trend-first collections with near-instant fulfillment.

Newme is a technology-driven omnichannel fashion brand specializing in trend-led western wear for Gen Z women. Operating 21 stores across 12 cities, it aims for 50 outlets by FY26.

With a target turnover of Rs 4,000 crore within five years, the brand leverages AI-led manufacturing and 60-minute ‘Zip’ delivery to dominate the Indian ‘fast-fashion’ segment.

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Quick Commerce 2.0: Slower, safer, and more profitable for fashion retail

16 January 2026, Mumbai

The era of instant gratification is facing its first major reckoning. For years, the promise of 10-minute delivery was the crown jewel of India’s hyperlocal startups like Blinkit, Zepto, and Swiggy Instamart.

It felt like magic: you realize you’re out of milk, and before the kettle whistles, a rider is at your door. But in 2026, that magic is being replaced by metrics and mandates.

With government scrutiny on unsafe delivery timelines intensifying and platforms expanding into non-essential categories such as fashion and apparel, the industry is shifting from a ‘speed-at-all-costs’ model to one centered on ‘profitable precision’.

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The 10-minute phenomenon

While the concept of ultra-fast delivery didn’t originate in India, it was pioneered by Turkey’s Getir in 2015, the pandemic turned India into its most ambitious testing ground. Startups discovered that strategically mapping dark stores (mini-warehouses hidden from public view) within a 2-3 km radius of high-demand neighborhoods could cut transit times to as little as 5-7 minutes.

But the 10-minute clock was more than operational efficiency; it was behavioral science in action. By removing the need for planned shopping, apps created habit-forming consumption, making even minor purchases like a pen or a snack an impulse emergency.

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Fashion takes the fast lane

Traditionally, fashion has lagged behind FMCG in speed. After all, a missing grocery item can derail a meal, whereas a missing shirt isn’t life-threatening. Yet fashion is emerging as the new frontier for quick commerce because of its superior unit economics. While groceries build frequency, fashion builds profits.

Table: Fashion the smart add on in the list

Feature

FMCG (grocery/snacks)

Fashion & apparel

Purchase Intent

High Urgency (Need-based)

Impulse (Occasion-based)

Return Rates

Near 0%

15% - 30% (Size/Fit issues)

Average Order Value

Rs 450 -600

Rs 1,500-2,500

Gross Margin

15% - 20%

35% - 50%

This table highlights why fashion is a lucrative addition to quick commerce portfolios. High margins and elevated order values make a slower but careful delivery economically attractive.

The Friday Night Emergency realizing your outfit is missing just before a date or meeting is emblematic of a new kind of urgency. While not essential for survival, social emergencies are monetizable, and platforms are now designing delivery networks to cater to this demand.

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Dark stores, the backbone and the bottleneck

The unsung heroes of the 10-minute economy are dark stores windowless, consumer-free fulfillment centers optimized for speed. By 2030, India’s dark store network is projected to triple to 7,500 units, powered by AI-driven picking algorithms and layouts designed to complete orders in under 60 seconds. Yet the very system that enables speed has a dark side.

Riders risk their safety navigating hazardous urban terrain to meet impossible deadlines, while local communities face congestion, noise, and pollution.

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The end of the 10-minute myth

By late 2025, the 10-minute promise collided with regulation. Pressure from the Confederation of All India Traders (CAIT) and gig worker safety concerns prompted a government directive to curb hyper-fast delivery claims. The new mandate discourages platforms from advertising fixed 10-minute delivery windows.

Instead, companies must provide distance-based estimates, such as Delivery in 12-18 minutes depending on your location. This regulatory nudge toward slower, safer, and more reliable fulfillment is a blessing for fashion, where careful quality checks and secure packaging are more critical than for groceries.

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The economics of instant fashion

The financial logic for integrating fashion into quick commerce is compelling. Unlike groceries, fashion orders absorb higher handling costs but also generate far more net contribution per order.

Table: Why fashion is the golden goose

Financial metric (Per Order)

FMCG (Grocery)

Fashion & apparel

Gross Margin Value

Rs 100

Rs 750

Dark Store Handling

Rs 15-20

Rs 25-35 (Includes QC)

Last-Mile Delivery

Rs 50-65

Rs 60-80

Return/RTO Logistics

Rs 2

Rs 120-180

Net Contribution

-Rs 5 to +Rs 15

+Rs450 to +Rs550

The data illustrates why platforms are increasingly willing to take the operational risk of fashion quick commerce. Even with high return rates, the net contribution remains exponentially higher than groceries, making the segment a financial golden goose.

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Reliability over recklessness

Quick commerce is maturing. The focus is shifting from mere speed to service reliability and product range.

SKU explosion: Dark stores are evolving to house up to 30,000 items, including designer wear, activewear, and innerwear.

Hybrid models: Consumers might receive milk in 15 minutes but sneakers or a dress in 45 minutes from specialized fashion dark stores.

Automation: Large fulfillment centers are adopting Automated Storage and Retrieval Systems (ASRS) to reduce picking time while minimizing human fatigue.

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The clock may no longer be ticking at 10 minutes, but it is ticking toward a sustainable, diverse instant fashion economy one where consumers still get what they want quickly, but the cost is measured in human safety, operational efficiency, and profitability.

The bottom line is that quick commerce is not dying; it is growing up. In moving from grocery runs to runway sprints, the industry is discovering that slightly slower delivery with higher quality, broader choice, and better margins is the future of instant gratification.

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CMAI integrates precision sourcing with new digital navigation at 82nd NGF 2026 in Mumbai

16 January 2026, Mumbai

The 82nd National Garment Fair (NGF) is set to transform Mumbai’s Bombay Exhibition Centre into the nerve center of the Indian apparel industry from January 20–22, 2026.

This edition arrives at a critical juncture as domestic consumption emerges as the primary stabilizer for an industry navigating fluctuating global export demands.

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Spanning 7 lakh sq ft, the event serves as a high-stakes barometer for the Spring–Summer season, hosting over 1,085 brands across 1,070 stalls.

With Rohit Kansal, Additional Secretary for the Ministry of Textiles, presiding as Chief Guest, the fair underscores the strategic alignment between government policy and the private sector’s push for a standardized, organized retail landscape.

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Digital integration and operational efficiency

Recognizing the increasing complexity of large-scale B2B sourcing, the Clothing Manufacturers Association of India (CMAI) has introduced a sophisticated stall-locator feature to streamline the buyer experience. This digital leap is designed to bridge the gap between traditional manufacturers and modern e-commerce decision-makers, who now represent a significant portion of the fair’s footfall.

By facilitating on-the-spot registrations and providing a premium, high-efficiency environment, the NGF aims to minimize the ‘search cost’ for retailers, allowing for faster inventory cycles in a market that is increasingly dictated by rapid, trend-led consumer behavior.

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Strategic move towards domestic resilience

The 2026 fair highlights a decisive industry move toward the domestic market, which is currently projected to grow by nearly 10.5 per cent this fiscal year. As international trade faces headwinds from logistics and evolving tariff structures, Indian manufacturers are intensifying their focus on the ‘Aspirational India’ segment - specifically Tier-II and Tier-III cities. The 82nd NGF provides the vital infrastructure for regional brands to scale nationally, offering a neutral ground where

boutique designers and mass-market manufacturers can secure the distribution networks necessary to capture a larger share of the country's expanding middle-class wallet.

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The CMAI stewardship and industry background

As the definitive voice of the Indian apparel sector for over six decades, the Clothing Manufacturers Association of India (CMAI) represents a massive network of 7,000 members and 50,000 retailers.

The association has been instrumental in modernizing the industry, notably through the 2019 launch of the SU.RE (Sustainable Resolution) initiative, which guides brands toward circularity and ESG compliance.

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Historically, CMAI’s influence extends to the very foundations of India’s trade infrastructure, having led the creation of the Apparel Export Promotion Council (AEPC) in 1978. Today, it maintains a robust financial and strategic outlook by serving as the primary bridge between the Ministry of Textiles and a manufacturing base that produces over 22 billion garment pieces annually.

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Ace Turtle accelerates regional expansion with new EBOs for Lee, Wrangler in Gujarat

15 January 2025, Mumbai

Bengaluru-based retail powerhouse Ace Turtle has accelerated its regional expansion by launching exclusive brand outlets for Lee and Wrangler in Anand, Gujarat.

Executed on January 13, 2026, this move signals a strategic pivot toward ‘Bharat,’ where rising disposable incomes in Tier-II and Tier-III cities are outpacing traditional metro growth. By placing these iconic American labels side-by-side on AV Road, the company is capitalizing on a clustered retail strategy designed to capture the ‘aspirational denim’ segment.

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Tech-led omnichannel precision in emerging markets

The launch is not merely a physical expansion but a deployment of Ace Turtle’s proprietary data-science platform. By analyzing localized e-commerce traffic, the company identified Anand as a high-potential hub with a 25 per cent rise in digital demand for premium casualwear over the last fiscal.

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Anand represents the new growth story of Indian retail- aspirational, brand-aware, and ready for global fashion, states Nitin Chhabra, CEO, Ace Turtle.

This technology-first approach allows the brand to optimize inventory levels in real-time, ensuring that high-demand fits and washes are consistently available to local shoppers.

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Navigating the discretionary spend landscape

Despite a broader slowdown in urban discretionary retail, Ace Turtle is doubling down on its offline footprint, supported by a recent $5 million bridge funding round led by Vertex Holdings in late 2025. The company aims to achieve EBITDA breakeven by the end of 2026 by leveraging vertical integration—from design to local manufacturing.

As the Indian retail market eyes a $1.1 trillion valuation this year, the success of these regional hubs is critical. Ace Turtle plans to maintain this momentum by bringing one new global brand to India annually, targeting a consolidated revenue of Rs 1,000 crore by FY28.

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Ace Turtle is the exclusive licensee for global icons including Lee, Wrangler, and Toys”R”Us across India and South Asia. Founded in 2013, the Bengaluru-headquartered firm operates as a vertically integrated platform, combining data science with local manufacturing.

Currently managing a portfolio of 80+ stores, the company is scaling its premium denim and toys categories to reach a Rs 1,000 crore revenue milestone by 2028.

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