India’s menswear market, valued at $21.91 billion in 2025 and projected to cross $42 billion by 2034, is changing fast. Once dominated by established denim, formalwear and apparel conglomerates, is now being challenged by founder-led, digital-native brands. The change is not simply about online-first retail. Brands such as The Souled Store, The Bear House, Rare Rabbit and Snitch have built scale using different commercial models, from pop-culture licensing and premiumisation to inventory velocity and lean capital deployment.

Their emergence also signals a broader change in Indian fashion retail: brands no longer need to replicate the traditional playbook of national advertising, wholesale distribution and hundreds of stores to build consumer recognition.

Different routes to scale

The new generation of menswear companies is differentiated by the operations behind their growth.

Table: Six distinct patterns that disrupted modern menswear

The Souled Store exemplifies how intellectual property can substitute for conventional brand-building. By securing entertainment, sports and comic licences, it transformed fan affinity into repeat purchases before investing heavily in physical retail. Its Rs 492-crore FY25 revenue demonstrates the commercial potential of building a community around cultural identities rather than generic fashion.

Rare Rabbit took almost the opposite route. Their strategy emphasised manufacturing control, premium fabrics, retail presentation and higher average order values. The result was Rs 637 crore in FY24 revenue and Rs 75 crore in net profit, highlighting how premiumisation can deliver stronger economics than pure volume-led growth.

The Bear House model is: capital discipline. Its relatively lean inventory structure and emphasis on positive unit economics demonstrate that rapid expansion does not necessarily require aggressive cash consumption.

Speed becomes the anchor

Snitch represents perhaps the clearest expression of India's fast-fashion opportunity in menswear. The brand has built its proposition around rapid product refreshes, reportedly introducing as many as a dozen styles a day to capture micro-trends.

Its evolution from an online-first retailer to an omnichannel network of 115 exclusive outlets reflects another important shift. Physical stores are being used not only as brand showcases but also as fulfilment and customer-acquisition assets. With offline revenue accounting for about 40 per cent of its mix, Snitch has expanded beyond metros into Tier II, III markets. Quick-commerce pilots offering apparel delivery within 60 minutes in cities such as Bengaluru and Delhi further illustrate how speed is becoming part of the product proposition.

The model helped them reach Rs 900 crore in FY26 revenue with positive EBITDA, showing how inventory velocity can become a competitive advantage when supported by data-led demand forecasting.

Selling less, but smarter

Other challengers are attacking a different weakness in conventional apparel: inventory risk. Bombay Shirt Company uses fit technology and made-to-order production to manufacture garments after customers place orders. Its model reduces exposure to unsold inventory and end-of-season markdowns, a persistent problem in fashion retail.

DaMENSCH has built differentiation around the product itself. Instead of relying exclusively on advertising or discounts, it invested in proprietary yarn and fabric development, including technical and bamboo-based materials. Such differentiation allows the brand to command a premium while building repeat purchase behaviour. These models show that the next phase of Indian menswear may be defined less by assortment size and more by the efficiency of the underlying commercial engine.

The omnichannel test

The shift from digital discovery to physical retail, however, comes with new risks. Rising high-street and mall rentals can quickly erode margins if stores fail to generate sufficient sales density. In smaller cities, Cash-on-Delivery returns and reverse logistics can similarly weaken online economics. Fast-fashion businesses face an additional challenge. Introducing hundreds of new products every week creates substantial exposure to demand forecasting errors. A trend that fails to resonate can rapidly turn into obsolete inventory.

Premium brands face the opposite problem: specialised fabrics and longer sourcing cycles can constrain responsiveness and tie up working capital. The winners are therefore likely to be those that balance online reach with selective physical expansion, while using localised logistics, tighter supplier management and demand analytics to control inventory.

A new retail perspective

The rise of homegrown menswear challengers points to a larger transformation in Indian fashion. Their competitive advantage is not simply that they are younger than legacy brands. It is that they have been designed around new consumer behaviours from the outset. Some monetise fandom, others speed, customisation, premiumisation or fabric innovation. Yet all are demonstrating that scale can emerge from sharply focused propositions rather than one-size-fits-all expansion.

As India’s D2C market moves toward the $30-35 billion GMV range, the competitive question for legacy menswear players is no longer whether these challengers can build brands. It is whether traditional businesses can adapt their slower product cycles, distribution structures and inventory systems quickly enough to compete with them.

India's activewear and athleisure market is expanding rapidly toward $1.5 billion, fueled by rising urban incomes and sustained consumer demand for health-oriented fashion. Global athletic labels are increasing direct retail footprints in tier-one metros to capitalize on high-density shopping centers. Reliance Brands (RBL) is accelerating this segment's growth by introducing US performance label Fabletics through an exclusive long-term master franchise agreement. Bypassing traditional multi-brand wholesale distribution, foreign apparel groups are establishing unified direct-to-consumer digital channels and high-street flagship stores in New Delhi and Mumbai.

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Navigating premium competition and supply chain realities

While import tariffs, margin pressure, and localized supply chain integration pose operational hurdles, international brands rely on advanced omnichannel technology to scale store economics. Fabletics, which generates over $900 million in annual global revenue across 125 retail outlets, plans to gain market share by offering specialized technical wear across yoga, running, and lifestyle product lines. Young consumers are embracing movement and athleisure as essential to their everyday lives, creating considerable opportunity for fashion-forward performance apparel, states Sumeet Yadav, Head, Reliance Brands. This launch underscores a broader structural shift toward premiumized apparel retail across South Asia.

SUSTAINABILITY

Expanding international footprint through omnichannel rollout

Founded in Los Angeles in 2013, Fabletics produces high-performance activewear for North American and European markets. Delivering over $900 million in annual sales, the brand plans to expand its 125-store international footprint through an exclusive Indian omnichannel rollout with Reliance Brands across e-commerce and flagship stores.

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Capitalizing on the global demand for heritage brand collaborations, Japanese fashion label Onitsuka Tiger is scaling its lifestyle portfolio with the Autumn/Winter 2026 Astro Boy collection. The 47-piece capsule merges the brand’s contemporary streetwear aesthetic with iconic manga elements. Featuring signature details like spray-paint-inspired branding, embroidered character motifs, and the character's distinct yellow boots, the line spans hoodies, premium bomber jackets, footwear, and accessories. By securing licensing rights to one of Japan’s most recognizable cultural exports, the brand aims to monetize nostalgia while targeting a younger demographic of luxury streetwear consumers.

Targeted physical retail rollout captures metro footfalls

To maximize brand visibility and control inventory distribution, the capsule is being deployed through a highly selective omnichannel strategy. In the Indian market, physical access is restricted to premium flagship locations, including DLF Promenade in New Delhi and Mall of Asia in Bengaluru, alongside direct-to-consumer digital channels. This limited-door distribution model preserves pricing power and drives urgency among high-intent buyers. By drawing inspiration from a recognized cultural icon, we are presenting a contemporary interpretation that celebrates creativity, individuality, and self-expression, notes a company spokesperson. Retail analysts indicate that anime-linked fashion collaborations frequently yield a 20-30 per cent premium on average transaction values compared to standard seasonal lines.

Premium footwear and lifestyle integration

Founded in 1949 and operating under ASICS Corporation, Onitsuka Tiger manufactures premium footwear, apparel, and accessories. Transitioning from athletic origins to luxury streetwear, the brand targets European capitals and high-growth Asian markets. Driven by high-margin cultural collaborations, the company focuses on sustained profitability and expanding direct-to-consumer retail.

Walmart-backed marketplace Flipkart is aggressively restructuring its ultra-fast delivery infrastructure through its quick-commerce arm, Flipkart Minutes, expanding its micro-fulfilment footprint past 1,000 active dark stores to capture urban consumer demand. Traditionally dominated by grocery items, the hyper-local delivery network has integrated high-margin apparel and lifestyle merchandise, enabling urban shoppers to receive clothing items within a 20-minute window. Industry metrics indicate, lifestyle demand across these rapid networks has more than doubled over the past year, prompting mass-market brands to rethink traditional three-day supply chain models.

Capturing Gen Z consumption shifts

The strategic inclusion of fashion into ultra-fast retail directly addresses changing purchasing patterns among metropolitan demographics, where Gen Z buyers account for nearly half of all digital retail transactions. Apparel labels such as Forcas Studio have initiated direct partnerships with the platform to supply trend-driven inventory closer to urban clusters. Consumer urgency in metropolitan centers has evolved past basic groceries into lifestyle and impulse apparel categories, explains Kapil Thirani, Vice President, Flipkart Fashion. By placing curated inventory inside hyper-local micro-warehouses, we are drastically compressing fulfillment timelines to match modern consumer expectations, he adds.

Targeting high-grwoth markets across India

Flipkart operates as a leading digital commerce ecosystem in India, specializing in multi-category retail, apparel, electronics, and digital financial services. The enterprise targets high-growth metropolitan and Tier-II markets with strategic expansions into instant retail and creator-led commerce. Backed by majority stakeholder Walmart, the company continues to narrow operational losses while scaling robust omnichannel supply chains. Founded in 2007 as an online bookstore, Flipkart has evolved into a premier digital retail conglomerate.

Online-native apparel labels are restructuring their go-to-market strategies by establishing physical store footprints to mitigate rising digital acquisition costs. Under its house-of-brands entity TMRW, Aditya Birla Fashion and Retail (ABFRL) has expanded its offline store count to 75 locations, pushing brick-and-mortar channels to account for over 15 percent of quarterly segment sales. Transitioning from purely digital acquisition models to physical retail destinations allows direct-to-consumer (D2C) brands to enhance customer lifetime value and lower return rates on fashion orders. A notable example includes casualwear brand Urbano, which scaled from a niche D2C offering into a ₹175 crore run-rate venture after expanding into high-street retail centers.

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Capital allocation shifts toward physical footprint productivity

Building multi-channel infrastructure requires navigating front-loaded capital expenditures in commercial real estate and inventory build-up. TMRW’s segment revenues reached Rs 220 crore in Q1 FY27, while operating losses narrowed to Rs 42 crore from Rs 63 crore in the year-ago period, reflecting structural improvements in store-level unit economics. Building integrated offline channels for digital-native brands creates sustainable growth models by lowering online customer acquisition expenses, notes Prashanth Aluru, CEO and Co-Founder, TMRW. Across India’s retail sector, unifying online platforms with physical storefronts provides D2C fashion labels with the inventory turnover and scale necessary to achieve long-term operating profitability.

SUSTAINABILITY

D2C portfolio ventures

TMRW is ABFRL’s technology-led venture platform acquiring and scaling digital-first fashion, activewear, and lifestyle brands across India. Targeting young digital consumers, the portfolio includes emerging labels such as Urbano, Bewakoof, and Wrogn. TMRW focuses on channel expansion to drive capital-efficient growth across physical and digital retail hubs.

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Accelerating urbanization and shifting lifestyle preferences are driving rapid growth in regional activewear consumption across Tier-II and Tier-III markets. Leading this geographic expansion in East India, activewear manufacturer TechnoSport launched its debut EBO in Jamshedpur, Jharkhand. The 1,200-square-foot store marks a strategic step toward capturing non-metro retail demand, where consumer adoption of technical performance wear is expanding by 18 per cent annually. By introducing specialized moisture-wicking and UV-protection apparel to industrial hubs, the brand addresses growing local preference for functional dailywear.

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Scaling brick-and-mortar footprint to counter offline logistics overhead

While digital storefronts drive initial brand discovery, physical retail outlets remain central to securing high conversion rates and lower return frequencies in regional markets. TechnoSport plans to deploy over 100 exclusive outlets across East and North-East India over the next 24 months, complementing its nationwide network of 5,000 multi-brand retailers. "Establishing dedicated retail touchpoints in emerging urban centers allows us to deliver high-performance synthetic fabrics at accessible price points while building long-term brand equity," said Puspen Maity, CEO of TechnoSport. Navigating regional logistics and inventory allocation remain key operational priorities as the brand scales its offline footprint.

SUSTAINABILITY

Activewear pioneer built for high-performance comfort

Established in 2007, Bengaluru-headquartered TechnoSport manufactures technical activewear, athleisure, and performance apparel engineered with UPF 50+ sun protection and anti-microbial treatments. Serving domestic and international markets, the company targets 30 per cent annual growth through aggressive offline retail expansion, supported by strong revenue momentum across pan-India distribution channels.

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Prominent leather footwear enterprise Valentino has officially introduced a specialized collection tailored specifically for India's police force and uniformed services. Recognizing the demanding operational environments and long shifts endured by law enforcement personnel, the brand has engineered a durable range comprising classic black and tan options. Handcrafted entirely from 100 per cent genuine leather, the new line combines formal elegance with structural resilience, featuring reinforced soles and ergonomic support designed to withstand rigorous daily wear without sacrificing professional appearance.

Addressing unmet market demands in law enforcement retail

The strategic launch addresses a long-standing gap in the institutional apparel sector, where standard issue gear often compromises on ergonomic comfort. By integrating advanced cushioning technologies with traditional craftsmanship originating from Agra's artisanal hub, the company aims to capture a high-retention consumer segment across state and central security agencies.  The brand aims to deliver products that combine timeless craftsmanship with modern comfort for those who protect our nation every day, notes Chander Daultani, Managing Director, Guru Shoes Tech. Available across leading e-commerce platforms like Myntra and Nykaa Fashion alongside dedicated retail storefronts, the collection establishes a new commercial benchmark for functional occupational retail.

Focusing on high-grade leather products

Valentino is a leading Indian premium leather footwear manufacturer specializing in handcrafted formal shoes, boots, and occupational gear. Operating primarily across domestic metropolitan markets and digital retail channels, the brand focuses on high-grade leather products, targeting both corporate consumers and institutional uniform sectors with a strong growth outlook.

India’s sports apparel and activewear industry is entering a new growth phase, one defined less by celebrity-driven aspiration and accessibility, manufacturing efficiency, and retail scale. As the market matures, the competitive scenario is shifting from brand prestige alone toward a more pragmatic equation centered on value, local sourcing, and operational discipline.

As per IMARC Group’s estimates, India’s sports apparel market was worth $696.45 million in 2025, and projected to increase at CAGR of 19.07 per cent till 2034. While the category continues to benefit from rising fitness awareness, growing participation in recreational sports, and increasing athleisure adoption, the strategies driving market leadership are undergoing a notable change.

Scale becomes the new advantage

For much of the last decade, international sportswear brands dominated the Indian market with their premium positioning, extensive endorsement portfolios, and aspirational branding. Brands like Puma and Adidas built formidable distribution networks while investing heavily in athlete sponsorships and celebrity campaigns. That model remains influential, but the economics are becoming more challenging. Maintaining premium brand equity requires substantial marketing expenditure, often limiting flexibility on pricing in a market where affordability remains a decisive purchasing factor.

Adidas, for example, increased global marketing and point-of-sale spending by 9 per cent to €3.07 billion during its recent reporting period, highlighting the growing cost of defending brand visibility in competitive markets.

India’s consumer base, particularly beyond major metros, is showing a growing preference for performance-led products that offer value rather than prestige alone. This trend is opening opportunities for retailers capable of combining quality with accessible pricing and widespread availability.

Growth meets margin pressure

The challenges of balancing expansion with profit are visible even among established volume leaders. For example, Decathlon India had operational revenue of Rs 4,133 crore in FY25, making it one of the country’s largest sporting goods retailers. Yet the company’s growth has moderated significantly compared to the extraordinary post-pandemic years, when fitness-related spending surged. More importantly, profits came under pressure. Decathlon reported a net loss of Rs 65.03 crore during FY25, compared to a net profit of Rs 197.2 crore in the previous fiscal, as operating expenses rose faster than revenue.

The cost structure reveals the pressures facing large-format sporting retailers. Procurement expenses increased 8 per cent to Rs 2,644 crore, accounting for nearly two-thirds of total expenditure. Depreciation costs rose 74.3 per cent to Rs 305 crore following expansion-led capital investments, while administrative, logistics, and store operating costs climbed 13.7 per cent to Rs 952.5 crore. Despite maintaining a positive EBITDA of Rs 174 crore, the company spent more than it earned on an operating basis, underscoring how difficult it has become to sustain profitability while aggressively expanding physical retail infrastructure.

Localization imperative

As margins tighten, sourcing strategy is emerging as one of the industry's most important competitive levers. Global supply-chain volatility, fluctuating currencies, and import-related costs have encouraged sportswear retailers to increase local manufacturing and procurement. Decathlon’s long-term objective of sourcing over 70 per cent of its Indian merchandise locally reflects a broader industry movement toward supply-chain localization.

The rationale extends beyond cost control. Local sourcing shortens lead times, improves inventory responsiveness, and reduces exposure to external disruptions. It also aligns with India’s growing importance as a global manufacturing base for textile and apparel exports. For retailers pursuing rapid scale, sourcing efficiency is becoming as important as consumer demand generation.

Rise of vertically integrated challengers

While MNC brands deal with rising operating costs, a new generation of domestic activewear companies is leveraging vertical integration to gain market share. Among the most prominent examples is TechnoSport, the Tiruppur-founded performance apparel company that has emerged as a serious contender in India’s mass-premium activewear segment.

Supported by a $32.4 million investment from A91 Partners, the company controls every stage of production, including fabric knitting, dyeing, and garment manufacturing, through three integrated facilities. This structure allows tighter control over costs, quality, and product development compared with outsourced manufacturing models.

The financial results reflect the benefits of this approach. TechnoSport reported revenue of Rs 436 crore in FY25 and is targeting Rs 600 crore in the current fiscal, with ambitions to cross Rs 1,000 crore by 2027 through domestic expansion and export growth. Its distribution footprint spans over 7,000 multi-brand outlets, while its exclusive store network has grown to 55 locations nationwide. The company plans to add approximately 80 additional outlets over the next year, taking its total store count to 135. Unlike competitors, TechnoSport has opted for a company-owned, company-operated retail model, allowing greater control over customer experience and pricing while keeping customer acquisition costs relatively low.

Table: Activewear market overview

Looking beyond metros

The next phase of activewear growth is being shaped outside India’s largest cities. Tier-II, III markets are emerging as demand centers as fitness culture expands across regional India. Offline retail continues to dominate the category, accounting for nearly 69 per cent market share, reflecting consumers’ preference to evaluate fit, comfort, and fabric quality before purchase. At the same time, e-commerce is increasing category penetration, with online sportswear sales growing rapidly across both metropolitan and emerging urban markets.

Retailers are responding through omni-channel strategies that combine physical stores with faster digital fulfillment. Initiatives such as same-day and two-hour delivery services are becoming important tools for customer retention and repeat purchases.

The industry’s future appears tied to execution rather than image. Premium brands continue to command strong consumer loyalty, but the market’s fastest-growing opportunities are emerging where affordability, localized manufacturing, and geographic reach intersect. As India’s activewear sector moves toward its next milestone, the winners are likely to be companies that can scale efficiently while delivering performance products at prices aligned with the country’s evolving consumer realities.

India’s apparel and fashion retail market demonstrated significant resilience through the start of FY26, recovering to a 6.8 per cent like-for-like sales growth in July following a mid-summer dip.

Data compiled across 50 million transaction points reveals, non-metro markets are leading the recovery, with Tier-III cities outperforming Tier-I urban centers by up to 2.4 percentage points. Discretionary apparel purchasing remained consistently positive, prompting fashion brands to adjust supply chain schedules to meet expanding small-town demand.

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Regional sourcing operations realign to lower utility costs

Faced with unpredictable demand cycles and high input costs, apparel manufacturers and retail buyers are re-allocating capital toward automated, low-utility manufacturing solutions. Garment production hubs in Western and Southern India report rising operational investments in automated cutting and energy-efficient finishing systems to protect gross margins while expanding output.

Like-for-like per-store demand data shows that apparel growth is spreading deeper into smaller cities, driving retailers to optimize inventory turn rates and streamline production lines, states Kumar Rajagopalan, CEO,  Retailers Association of India.

SUSTAINABILITY

Digital payment integration accelerates sourcing transactions

Digital payment adoption in apparel trade has accelerated, with UPI transaction volumes expanding by 14 per cent Y-o-Y in July. Garment manufacturers and retail chains are increasingly integrating unified digital payment platforms across vendor networks and enterprise storefronts to reduce settlement friction, shorten working capital cycles, and support sustained double-digit expansion plans across domestic channels.

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Helping brands improve efficiency across retail categories

The Retailers Association of India functions as the apex trade body representing modern retail, e-commerce, and apparel merchants across India. Operating nationally, the organization drives industry research, policy advocacy, and technology frameworks, supporting thousands of member brands in scaling operations, expanding market presence, and improving operational efficiency across key retail categories.

Aditya Birla Fashion and Retail (ABFRL) expanded its top line by 11 per cent Y-o-Y to Rs 2,026 crore in Q1 FY27, anchored by high-end consumer demand and aggressive store additions. The group’s luxury vertical recorded a 30 per cent revenue growth to Rs 157 crore, propelled by double-digit like-for-like sales at The Collective and rising footfalls at flagship luxury hub Galeries Lafayette. Concurrently, ABFRL added over 45 stores during the quarter, expanding its total physical footprint beyond 7.9 million sq ft. Its youthful value-fashion label OWND led volume momentum with a 55 per cent revenue jump across 88 locations.

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Optimizing multi-channel networks amid operational costs

While physical store additions and e-commerce growth - up 37 per cent Y-o-Y- strengthened market reach, upfront rollout costs for upscale formats weighed on short-term margins. Mainstay departmental chain Pantaloons generated 7 per cent revenue growth across 399 stores, supported by 4% like-to-like sales gains. Dual-track expansion across aspirational luxury and youth-centric value formats allows us to capture distinct consumer cohorts across metropolitan and regional markets, noted a retail strategy executive. Through disciplined inventory management and channel diversification, ABFRL continues positioning its portfolio to capture organized market share.

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Diversified retail backbone of Aditya Birla Group

Formed through the 2015 integration of Madura Fashion and Pantaloons, ABFRL manages menswear, value retail, ethnic wear, and international luxury brands. Operating across 7.9 million sq ft, the company targets sustainable long-term profitability through network expansion, supported by annual operational revenues exceeding Rs14,000 crore.

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Capitalizing on six decades of textile manufacturing expertise, domestic mill operators are increasingly bypassing traditional wholesale channels to capture higher gross margins in men's premium ethnic wear. Delhi-based menswear label Kalpraag transformed its parent fabric manufacturing business into a direct-to-consumer brand, scaling to an estimated Rs 200 crore valuation following its direct retail launch. By utilizing in-house production of pure silks and linens without synthetic blends, the company eliminates intermediary markups to supply made-to-measure ensembles priced between Rs 6,500 and Rs 42,000.

Omnichannel physical expansion targets Tier-I and Tier-II metros

To capture market share in India's structured festive and wedding wear sector, legacy textile enterprises are accelerating retail store rollouts paired with cross-border e-commerce fulfillment. Following flagship launches in Delhi and Hyderabad, Kalpraag is executing plans to open 15 to 25 exclusive brand outlets while expanding franchise presence into regional urban centers. Controlling the value chain from mill sourcing to retail sales ensures quality control and protects gross margins against heavy discounting, states Mayank Jain, Founder and Managing Director, Kalpraag.

Integrated heritage fabric and menswear enterprise

Evolving from a 1965 fabric manufacturing unit supplying global labels, Kalpraag crafts premium men's ethnic apparel, including kurta sets, Jodhpuris, and sherwanis using pure natural textiles. The Rs 200-crore valued enterprise targets 25 domestic retail stores while scaling direct-to-consumer export operations across North American and European markets.