The fashion sector in India is undergoing a dramatic shift, with runway trends and ever-growing influence of social media stars. A new report by EY and Collective Artists Network's Big Bang Social gives an insight into influencer marketing boom, with a projected 25 per cent growth in the sector this year alone. This growth is largely driven by the fashion, lifestyle, and beauty industries, making it a goldmine for brands looking to tap into a hyper-connected consumer base.
The report, ‘State of Influencer Marketing in India’ is based on a survey of over 2,000 participants, including brands, creators, and industry professionals. It reveals a country on the cusp of a social media shopping revolution. With a staggering 740 million active smartphones expected in India by 2030, and half of mobile usage dedicated to social media, influencer marketing has become an essential weapon in the marketer's arsenal.
Fashion and lifestyle lead the charge
The report highlights the dominance of fashion, lifestyle, and beauty brands in propelling the influencer marketing growth. These segments understand the power of influencers to showcase products in a relatable and aspirational way. Consumers, particularly younger demographics, trust the recommendations of influencers they follow, making them valuable brand ambassadors.
Brands embrace influencer power
Over 70 per cent brands are already actively investing in influencer marketing, and this number is only set to rise. The report highlights a significant shift in strategy, with three-quarters of brand strategies incorporating influencer marketing and 75 per cent of brands planning to maintain or increase their budgets in 2024. Interestingly, brands are prioritizing engagement over direct sales, focusing on influencers who resonate with their target audience and generate genuine connections. This is leading to a rise in the popularity of micro and nano influencers, who boast higher engagement rates despite their smaller followings.
The report advises a strategic approach, leveraging established mega/macro influencers for brand awareness and loyalty, while using micro/nano influencers to drive deeper audience engagement. This targeted approach allows brands to cater to specific demographics and interests, creating a more impactful marketing message.
What’s more the influencer marketing landscape is not just about established names. The rise of short video platforms like Chingari and MX TakaTak is introducing new avenues for brands to connect with consumers, particularly in non-metros. These platforms, dominated by a younger, male demographic, are broadening the creator base and introducing fresh content formats.
Key takeaways from report
Increased investment: Over 70 per cent of brands are already investing in influencer marketing, and 75 per cent plan to incorporate it into their future strategies.
Shifting priorities: Brands are prioritizing engagement and awareness over direct sales conversions when selecting influencers.
Rise of micro and nano influencers: Almost 47 per cent brands favor micro and nano influencers due to their cost-effectiveness and high engagement rates.
Performance-based compensation: The traditional fixed fee model is evolving, with brands exploring performance-linked models to ensure accountability.
Emerging platforms: While Instagram and YouTube remain dominant, platforms like Chingari and MX TakaTak are gaining traction with new consumer segments.
However, despite the positive outlook, challenges remain. Marketers struggle to measure the return on investment (ROI) of influencer campaigns, while influencers prioritize building audience loyalty and maintaining credibility. Addressing these challenges will be crucial to ensure the sustainable growth of the influencer marketing industry in India. With a clear understanding of these challenges and a focus on innovative strategies, influencer marketing is poised to be a game-changer for brands and creators alike, particularly in the fashion, lifestyle, and beauty sectors.

India’s luxury market is projected to be worth$90 billion by 2030, a staggering 3.5 times its current size, says a report by Bain & Co, a consulting major. Covering a range of products from personal luxury goods to home decor, the luxury goods market in India is poised for remarkable growth. And within this landscape, personal luxury goods alone constitute a $4 billion market.

Key findings
The study states, Indian luxury market is experiencing a boom, driven by a growing number of ultra-high net worth individuals (UHNWI) and a rising middle class. The market is expected to reach $85-90 billion by 2030, making it the world's fastest-growing luxury market.
There is a significant evolution in India's luxury market, marked by a surge in HNIs and UHNWIs. Notably, there is now a shift, with consumers, who once sought luxury abroad, turning their attention to India," says Anurag Mathur, partner at Bain & Co.

E-commerce is playing a big role in the luxury market, making it more accessible to consumers across India. One major catalyst for growth are consumers who are increasingly looking for experiences and meaningful stories behind luxury products. There is a growing demand for luxury cars, homes, and jewellery with both established and emerging brands vying for a piece of the pie. In fact, in 2023, luxury car sales witnessed a record high of 42,731 units, a 20 per cent year-on-year increase. What’s more, as per real estate consultancy JLL India reports a 51 per cent growth in sales of luxury homes valued at Rs 50 crore and above in 2023.

Growth drivers

Rise of the affluent middle class is one major catalyst. Increasing disposable incomes and aspirations are leading more people to seek luxury goods. The study reveals, the number of UHNWIs with assets exceeding $1 million is projected to reach 16.5 lakh by 2027, up from 7.9 lakh in 2022. Then there is this trend of ‘revenge spending’ post-pandemic is fuelling indulgence in luxury purchases.
Meanwhile, expansion of e-commerce platforms like Tata CLiQ Luxury are making luxury goods more accessible to a wider audience. This coupled with opening of ultra-luxury retail destinations like Jio World Plaza in Mumbai is attracting global brands and offering a world-class shopping experience.

Booming demand across sectors

In fashion segment, global luxury brands like Louis Vuitton, Dior, and Gucci are witnessing robust sales, while domestic designers like Sabyasachi Mukherjee are expanding their reach. Similarly in jewellery sale of Bulgari's mangalsutra, a traditional Indian necklace, have been brisk, reflecting a growing appreciation for local design elements within the luxury segment. "We are probably the only global jeweller to have Indian products such as the mangalsutra and the kada," says Jean-Christophe Babin, CEO of Bulgari. Swiss watch exports to India jumped 16 per cent in 2023, and retailers like Ethos Watch Boutiques are experiencing significant growth. In cars, luxury carmakers such as Mercedes-Benz, Audi, and BMW reported stellar sales figures in 2023, with the overall segment growing by 28 per cent.

Challenges and the road ahead

One major challenge is the limited quality retail space. India needs more high-end infrastructure to accommodate the growing demand for luxury brands. Also, luxury brands need to stay updated on the changing tastes and aspirations of Indian consumers. “Infrastructure and distribution channels required for a luxury boom are still a challenge, but once we bridge that gap, India will be on the rise,” says Sabyasachi Mukherjee, Indian fashion designer.

The Indian luxury market is poised for continued growth, due to a combination of factors. With increasing affluence and a growing appetite for luxury goods, India is expected to become a major player in the global luxury market. However, addressing infrastructure challenges and providing a seamless customer experience will be crucial for sustained growth.

India’s fashion scene is witnessing a resurgence of ethnic wear, particularly evident in the booming Indian wedding wear market. This segment is not just about extravagant celebrity looks but a carefully curated blend of heritage crafts and contemporary sensibilities.
Market size and growth
While specific figures for bespoke and ready-to-wear are unavailable, India's wedding wear market is estimated to be worth over Rs 70,000 crore ($8.4 billion) and is projected to grow further. India is the second-largest market globally, only behind the US. And as per Clothing Manufacturers Association of India (CMAI) estimates, bridal wear constitutes 10-12 per cent of the total clothing market, highlighting its significance. Studies indicate, the international wedding market is projected to grow from $61.1 billion in 2023 to $83.5 billion by 2030.
In India, the segment is experiencing significant growth, with projections suggesting a CAGR in the range of 4-5 per cent. This growth is due to several factors like a rising middle class, increasing disposable income, and a growing appetite for designer wear.
Impact on traditional crafts
The demand for bespoke bridal wear has led to a renewed interest in traditional Indian crafts like embroidery techniques (zardozi, chikankari, etc.) and textile weaving (kanjeevaram, banarasi saris). High-end designers are creating exclusive, handcrafted wedding outfits, reviving traditional embroidery techniques like kalabatttu among others this empowers artisans and keeps these age-old practices alive.
Brides too are opting for multiple custom-made pieces reflecting their personal style and heritage. This trend is leading to the growth of bespoke couture by designers like Sabyasachi Mukherjee, Manish Malhotra, Anita Dongre among others, with prices ranging from Rs 50,000 to astronomical undisclosed figures. In fact, designers are reinterpreting traditional silhouettes and embellishments to create contemporary looks. This caters to the evolving preferences of millennial brides who seek personalized designs that reflect their individuality. For example, designer Anita Dongre's focus on lightweight lehengas with pockets, is a welcome change from the traditionally heavy styles. As Yash Dongre, President, House of Anita Dongre, points out their focus has always been on functionality and comfort as brides are uncomfortable wearing heavy lehengas. Also, the focus on intricate craftsmanship and personalization elevates wedding wear into heirlooms, passed down through generations.
The tiered landscape, metros vs. non-metros
The market caters to a diverse clientele. While metros witness higher demand for luxury couture, Tier II and III cities have a thriving market for ready-made designer wear and traditional ensembles. Brands like Manyavar and Roopam offer affordable options, making designer aesthetics accessible to a wider audience. As Rahul Mehta, Chief Mentor, CMAI explains, earlier weddings would be the occasions to wear formal tie-suits. The introduction of affordable Indian ethnic designer wear has been a game-changer.
While established designers garner significant attention, the commercial market is a major player. It offers a wider range of wedding wear options at accessible price points, making designer aesthetics more attainable for a larger audience. Experts point out, commercial brands contribute to a higher overall turnover compared to high-end designers. Unlike bespoke pieces, commercially produced outfits can be worn for multiple festive occasions, offering better value for money.
A flourishing fashion trend
This isn't a fleeting fad. The rise in disposable income, cultural revivalism, and growing emphasis on individuality are driving forces behind the market's sustained growth. Marriages are no longer one-day affairs, with pre-wedding functions creating further demand for occasion wear.
In fact, the growing appreciation for Indian heritage and the revival of ethnic wear suggest a long-term trend, not just a fad. Then there is Bollywood’s influence where weddings continue to be a major trendsetter, influencing the choices of younger generations. Moreover, increasing disposable income of middle-class families fuels demand for elaborate wedding celebrations and designer wear. The moot point is, Indian wedding wear market is not just about exorbitant couture; it's a story of cultural revival, economic empowerment, and the constant evolution of a nation's sartorial identity and this is not just a passing fad.