While the global outlook for consumer spending is dim on account of rising trade tensions, political uncertainty and economic concerns, India presents an exciting opportunity particularly for price competitive players.
The Indian clothing market is the sixth largest globally. While GDP growth this year has been somewhat weaker than expected, in part due to regulatory uncertainty, India is still projected to be the fastest-growing major economy. The country has attracted global brands like Zara, H&M, Marks & Spencer and Uniqlo and has relaxed local sourcing norms in single brand retail, providing further impetus to the industry.
India’s fashion market is projected to grow at 15 per cent compound annual growth rate till 2022. Mobile platforms are expected to influence more than two-thirds of both apparel and fashion accessories purchases by 2022. The country has emerged as one of the world’s fastest-growing fashion markets over the past few years. The growing penetration of the internet, social media and e-commerce is now providing consumers in Tier II and below cities increased access to brands and products. New operating models such as omni channel and assisted e-commerce could further fuel growth and adoption of online commerce.
Globally fashion industry revenue growth is expected to slow further in 2020. The most optimistic region is Asia.