As per The State of Fashion 2019, a survey issued by McKinsey & Company, a global management consultancy firm, India is likely to become a centrepoint for the fashion industry this year as its strengthening manufacturing sector and burgeoning middle class will create a whole new class of consumers.
India to grow at 8 per cent, inspires global designers
The fastest growing major economy in the world, India is predicted to grow at 8 per cent a year between 2018 and 2022. The middle class will expand by 19.4 per cent a year over the same period, outpacing China, Mexico and Brazil. As a result, India is set to move from being an increasingly important sourcing hub to one of the most attractive consumer markets outside the western world. As McKinsey’s FashionScope reveals, India’s apparel market will be worth $59.3 billion in 2022, making it the sixth-largest in the world, and comparable to the UK ($65 billion) and Germany ($63 billion).
India continues to inspire Western designers, who pay tribute to the Indian weave which is a unique mix of vivid colors, silks, motifs and silhouettes. International labels like Emilio Pucci, Christian Dior, Missoni and Christian Labotin are mersmerised by the Indian textile production and have reinterpreted India’s exquisite repertoire of imagery.
Domestic market offers multiple benefits
As per the The State of Fashion 2019 report, over 300 international fashion brands are expected to open stores in the country in the next two years. Many of these have plans to enter new markets while others plan to expand existing operations.
The report says, the Indian market offers great promise despite structural challenges that include inequality, infrastructure and market fragmentation. There are signs of improvement in terms of infrastructure with luxury malls popping up more frequently.
The supply side of the industry is robust and growth of textile and apparel exports is expected to accelerate. The country is endowed with huge stock of raw material such as cotton wool, silk and jute which enable participation in the entire fashion value chain.
Western brands woo Indian designers
And it is a fact that Western fashion brands woo Indian designers. It started to become a trend when in 2011 with Paco Rabanne asking Manish Arora to be the creative director of a chic women’s wear collection based on ancient know-how. Today, there is an extraordinary generation of Indian fashion designers who are pulling those unique inherited techniques into cutting-edge visions of beauty. The Indian fashion scene is vibrant and dynamic.
Given all these considerations, investing in India’s expanding apparel market could be a clever move as a burgeoning middle class is keen to demonstrate an unprecedented “desire” to express their identity through fashion.