Fast fashion market to grow to over $50 billion by FY31: Alpana Razdan, Country Manager, Falabella

10 May, Mumbai 2025

Currently valued around $10–11 billion, the fast fashion segment is expected to grow to over $50 billion by FY31 as brands such as Zudio aggressively broaden their footprint and open tons of new stores. The segment is growing at the rate of 30 per cent-40 per cent annually.

Strong growth is being recorded in both the budget-friendly and high-end segments of India’s fashion market. Alpana Razdan, Country Manager, Falabella and Co-founder, AtticSalt, points out, brands like Zudio are blowing up in smaller towns while luxury names like Sabyasachi are making waves in upscale Mumbai malls.

In particular, Zudio has doubled its store count in just two years and raked in over $1 billion in annual revenue. They're selling 90 T-shirts every single minute and turning over inventory every 15 days to keep up with trends.

On the flip side, India’s premium and traditional wear market is also booming, powered by a $130 billion wedding industry and rising incomes that are blurring the lines between clothes for special occasions and everyday splurges.

The traditional wear segment is projected to hit $30 billion by 2030, with brands growing by over 7 per cent annually. Brands like Sabyasachi and Zara are tapping into a growing demand for luxury, unique pieces, and the whole brand experience. For instance, Zara registered a 40 per cent rise in revenue with average customer spending significantly higher than mass-market rivals.

Brands with lower prices and wider reach - like Zudio - are grabbing the biggest piece of the market pie, while premium brands are holding onto fat margins and strong customer loyalty.

The wedding business continues to be a huge engine for traditional and occasionwear. With a combined value of $80 billion over 800 direct-to-consumer (D2C) brands in this segment are setting up physical shops, boosting their visibility and reach in multi-brand stores.

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