16 February 2024, Mumbai

The dynamic landscape of Indian fast fashion is a blend of affordability, trendiness, and a burgeoning youth demographic. Valued at $9.90 billion in 2023, this market is forecast to reach $28.84 billion by 2030, with an impressive compound annual growth rate (CAGR) of 16.5 percent.

This burgeoning market is not only reshaping India's fashion scene but also provides valuable insights into shifting consumer preferences and strategic disparities when compared to global
What drives the market?
Indeed, the fast fashion market in India is seeing fast forward growth. As Darmesh Shah, Founder & CEO, Pepperfry, says, "The Indian fast fashion market is witnessing a perfect storm -- a young, fashion-conscious population, rising disposable incomes, and the power of digital platforms.

This is creating a unique opportunity for brands to cater to this evolving consumer segment." Several factors have worked in tandem to boost growth".
Youthful population with rising disposable incomes: Over 65 percent of India's population is under 35, forming a tech-savvy and fashion-conscious demographic. Rising disposable incomes fuel their desire to experiment with trends, making them prime customers for fast fashion brands.
Social media and celebrity influence: Instagram and YouTube have become powerful tools for trend discovery. Celebrities act as walking billboards, influencing young adults and driving demand for replicated styles offered by fast fashion brands.
E-commerce penetration in Tier II, III cities: The digital revolution has bridged the gap between urban and non-urban centers. E-commerce platforms provide Tier II, III cities access to fast fashion brands, expanding the market significantly.

“India's e-commerce boom has democratized fashion access, making Tier II, III cities significant contributors to fast fashion market growth," opines Sunil Nair, CEO, Myntra.
However, while global fast fashion brands have gained popularity in India, domestic brands are seeing a lot of traction as well.

Interesting nuances

What helps them grow is their focus on value and affordability. Indian consumers are price-sensitive, and fast fashion brands cater to this by offering trendy styles at significantly lower prices compared to global brands. Faster trend adoption is another plus for Indian fast fashion brands.

Evolving landscape; They react swiftly to changing trends, replicating runway looks within two to three weeks, compared to the four- to six-week cycle of global brands.

Moreover, localization and cultural sensitivity work for Indian brands as they understand the cultural nuances of the market and adapt designs to local preferences, offering ethnic and occasion-specific wear.
Sectoral performance
Women’s wear leads the charge in fast fashion, accounting for over 60 percent of market share. Global brands like Zara, H&M, and Indian fashion player Myntra have established a strong presence with diverse offerings.

Menswear too shows promise, as the segment is growing at a rapid pace, driven by increasing male disposable income and fashion awareness. Myntra, Bewakoof, and Ajio are catering to this segment with trendy and affordable options.

Kid’s wear potential is still unexplored, as segment holds immense potential but remains relatively untapped. Brands like H&M Kids and GAP Kids are making inroads, but local players can capitalize on the growing demand for affordable and stylish children's wear.
Dynamics

While affordability remains a key driver, a segment of consumers is seeking premium quality and unique designs. This has led to the emergence of premium fast fashion brands like AND, Masaba Gupta, Anita Dongre, and Label by Ritu Kumar among others, offering differentiated products at slightly higher prices.

However, the road is fraught with challenges as designer Anita Dongre says, "The challenge for brands lies in striking the right balance between affordability, trendiness, and quality. Understanding the nuances of the Indian market and adapting accordingly will be key to success."
Shaping paradigms

The Indian fast fashion market is a dynamic force, poised for exponential growth. Understanding the key drivers, strategic differences, and sectoral performance will be crucial for brands to navigate this exciting landscape.

As the market matures, the premiumization trend and focus on sustainability offer additional avenues for growth and differentiation.

With its unique characteristics and immense potential, the Indian fast fashion market promises to be a game-changer in the global fashion industry.

 Latest Textile Events

Captivating the audience with a vibrant display of traditional occasion wear, fashion maestro JJ Valaya unveiled his latest collection, ‘Char,’ at the Blenders Pride Fashion Nxt event in Hyderabad.

Themed around red carpets and radiating glamour, the runway show featured celebrity showstoppers Mrunal Thakur and Jim Sarbh, who walked the ramp in stunning monochrome ensembles.

Showcased under his ready-to-wear diffusion line, Valaya's ‘Char, ’collection featured sarees and lehengas in abstract animal prints and sepia floral motifs, while the men's wear featured geometric patterns.

A collaborative effort with the Fashion Design Council of India, Blenders Pride Fashion Nxt allows Indian designers to showcase their creativity in unique and conceptual ways.

Ashish Soni, Curator-in-Chief, Blenders Pride Fashion Nxt, the show brings high fashion and glamour to new audiences in an unprecedented way. It caters to the aspirations of young Indian consumers by tapping the ever-evolving pulse of fashion, he adds.

With its bold graphics and traditional silhouettes Valaya's ‘Char’ collection left a lasting impression on the audience and solidified the brand’s position as a leading force in Indian fashion.

Lakmé Fashion Week (LFW) is returning to Mumbai's Jio World Convention Centre from March 13-17, 2024 in partnership with FDCI. Promising to be bigger and better than ever, this edition upholds its commitment to sustainability, inclusivity, and showcasing the latest trends in Indian fashion.

Established in 1999, LFW has become a biannual landmark event, attracting designers, models, celebrities, and fashion enthusiasts from across the globe.

Renowned for its diverse platform, the show embraces models of various ages, sizes, and ethnicities, challenging traditional beauty standards and setting an inclusive example for the industry.

The dedicated "Gen Next" platform provides a launchpad for budding designers to showcase their talent and collections. This initiative has introduced renowned names like Sabyasachi Mukherjee and Masaba Gupta, fostering innovation and propelling fresh perspectives into the fashion scene.

This year's edition will focus on eco-conscious collections and initiatives promoting responsible fashion practices. It will celebrate beauty in all forms through its diverse representation on the runway.

After a successful event in Prayagraj, fashion extravaganza Fashionista will showcase a vibrant array of womenswear brands, accessories, etc in Coimbatore, Mumbai, and Salem.

The Mumbai edition of the event will be held from February 21-22, 2024 at the Valecha Hall. It will be held as a pop-up event and showcase a diverse selection of womenswear brands.

The event will next be held in Coimbatore held from February 24-25, 2024 at Taj Vivanta. It will showcase traditional and fusion wear, handicrafts, gift items, bridal wear, accessories by brands like Hana, Nayab Stores, Karpasa Vastra, Saey 7, House of Sengaanthal, Saadgi, etc.

The third edition of Fashionista will be held at CJ Pallazzio in Salem. Scheduled from February 27-28, 2024, the trade show will focus on womenswear, accessories etc.

08 February 2024, Mumbai

Move over smartphones; fashion is the new focus of Indian consumer spending. While traditionally dominated by necessities like food and household items, the share of apparel and fashion in Indian consumer’s baskets is witnessing a dramatic rise.

Evolving landscape

The consumer's wardrobe is undergoing a metamorphosis, with fashion and apparel claiming a large share of their spending.

This shift, however, isn't uniform across segments, sectors, or locations. However, it presents exciting opportunities for brands and retailers and also demands a closer look at the driving forces behind this trend.
Growing share of fashion and apparel

Many factors have worked in synchronization to drive this change among consumers. With economic growth, household budgets see more room for discretionary spending, with fashion becoming a priority for many.

Also, the growing urban population and evolving lifestyles are pushing demand for trendy and comfortable clothing. Social media too has had an influence, with Instagram and YouTube fueling fashion consciousness, especially among younger generations.

Then there is the e-commerce boom, with online shopping offering convenience, a wider selection, and competitive prices, making fashion more accessible.
Metros like Delhi, Mumbai, and Bengaluru lead the fashion charge, accounting for 40 percent of spending.

Bharat i.e. India

However, Tier II & III cities are witnessing explosive growth at 25 per cent CAGR, fueled by rising incomes and internet penetration.

In fact, the share of fashion spending is growing faster in Tier II, III cities and rural areas compared to metros. Even though metros have a large share of fashion spend (refer table). Perhaps this is being driven by Tier II & III cities’ desire to emulate metro trends, creating a distinct growth opportunity.

Quotes

"The rise of Tier II & III cities presents a massive untapped potential. Brands that understand the unique needs and aspirations of these consumers will be well-positioned for future growth," predicts Rajesh Gupta, CEO of a retail consultancy firm.
Metros vs small cities

Even among segments, it’s the premium segment that has seen the most growth (refer to the table) at 25 per cent followed by mid-price and then economy
Segment growth

Among categories, menswear and women’s wear are neck-and-neck, each contributing around 45 per cent of the market and growing almost at similar levels. Kid’s wear is following swiftly behind at 10 per cent, driven by rising disposable incomes and brand awareness among young parents.
Category growth

Changing retail patterns
While online fashion sales are booming at a staggering 35 per cent CAGR, physical stores still hold a 70 per cent market share.

However, the lines are blurring with omnichannel strategies gaining traction. Myntra, the leading online fashion platform, saw a 50 per cent increase in active users in 2022 compared to 2021.

New paradigms

Moreover, rural markets, traditionally focused on essentials, are witnessing a surge in fashion spending, driven by rising disposable incomes and internet penetration. Ethnic wear brands are experiencing a revival, with consumers seeking a blend of tradition and contemporary styles.
Opportunities for brands and retailers
With changing spending patterns, it does throw up many opportunities for apparel brands and retailers. They need to strategies and focus on value and affordability to cater to the diverse needs of Indian consumers across income levels and regions.

Embrace omnichannel strategies and blend online and offline experiences to provide seamless shopping journeys.

Green products; With consumers increasingly conscious of their environmental and social impact, offering sustainable and ethically sourced products can be a differentiator.

Forward guidance

Personalization and customization to cater to individual preferences and styles through targeted marketing and product offerings will be another plus.
The changing share of fashion and apparel in Indian consumer spending presents a unique opportunity for the industry.

By understanding the driving forces, embracing the trends, and catering to the evolving consumer, brands can unlock significant growth potential in this dynamic market.

Latest Textile Events

American luxury fashion brand Michael Kors has opened its first store in Gujarat.
Located at the Palladium Ahmedabad Mall in the city, the store is the brand’s ninth store in India. Michael Kors has three other stores in Mumbai, two in Delhi, and one each in Bengaluru, Chennai and Kolkata.

Established in 1981 by designer Michael Kors, the brand currently offers a range of products under the brand Michael Kors Collection, MICHAEL Michael Kors, and Michael Kors Men’s, including accessories, ready-to-wear, footwear, wearable technology, watches, jewellery, and a full line of fragrance products.
The brand has stores across the globe in addition to digital flagships across North America, Europe, and Asia.

Popular legwear brand Balenzia has partnered with WWF India to launch a special socks collection called ‘Love for Wild.’ This initiative harnesses the power of fashion to support wildlife conservation efforts and spark meaningful conversations about environmental stewardship.

Rahul Gupta, Director, Balenzia, says, going beyond just design, this collection reflects the brand’s shared commitment to protect wildlife and their habitats.

The "Love for Wild" range features vibrant, organic cotton socks for both men and women. They are adorned with eye-catching prints of iconic Indian animals like the Bengal tiger, Indian one-horned rhino, and Asian elephant.

Kaveri Jain, Director-Marketing and Communications, WWF India, adds, conserving wildlife requires collaboration from all sectors, and this partnership is a great example of how businesses can make a positive impact.

The ‘Love for Wild’ collection will be available online and in Balenzia's brick-and-mortar stores across India.

Despite festive season sales offering discounts up to 65 per cent, shoppers remain unmoved, leaving retailers in a predicament. The usual end-of-season clearance, advanced two weeks to December in hopes of a pre-Republic Day surge, has fallen flat.

Brands like Pepe Jeans, grappling with ‘stress’ in the mass value segment, pinned their hopes on the EOSS to revive sales. However, Manish Kapoor, Managing Director, confesses, ‘growth is tepid.’ The industry anticipates a rough quarter ahead, with any potential recovery shimmering only after April. Experts point to a combination of factors. Inflation has squeezed disposable incomes, pushing priorities towards leisure and travel.

Brewing since January 2023, fashion retail slowdown has further dampened spirits. As per the Retailers Association of India, overall retail growth, once vibrant at 9 per cent in August and September, dipped to 7 per cent by November.

Muhammad Ali, CEO, Forum Malls acknowledges while restaurants are still buzzing, fashion retail is under stress. He attributes the slowdown to store expansions masking the demand slump. However, he remains optimistic, believing in the enduring appeal of physical retail and the need for brands to constantly reinvent themselves.

ICICI Securities' survey reveals aggressive discounting, with Shoppers Stop leading the pack at 66 per cent, compared to its peers hovering around 40 per cent. But even these deep cuts haven't lured customers back. The value fashion segment, particularly hard hit, struggles to reclaim pre-pandemic sales per square foot.

The story unfolding in India's apparel retail landscape is a cautionary tale. Discounts, once a magic wand, have lost their charm. Consumers, conscious of value and prioritizing experiences, demand more. The future lies in understanding these shifting preferences, innovating offerings, and creating experiences that go beyond price tags. Only then can the aisles of fashion stores reclaim their lost vibrancy.