Report Overview

Increasing influence of global fashion trends and western culture, thriving e-commerce sector, the rising level of disposable incomes, and growing young population are expected to drive the India Fashion Retail Market during the forecast period between 2024 and 2030.

India Fashion Retail Market – Industry Trends & Forecast Report, 2030

The India Fashion Retail Market size was estimated at USD 58.16 billion in 2023. During the forecast period between 2024 and 2030, the India Fashion Retail Market size is projected to grow at a CAGR of 12.65% reaching a value of USD 125.31 billion by 2030. A prominent driver of the market is increasing disposable incomes, rapid urbanization, and burgeoning middle class. In recent years, Indian apparel retail has witnessed a significant uptick, despite the challenges posed by the pandemic in 2020. The sector experienced a robust recovery from late 2021 onwards, buoyed by increasing consumer confidence as vaccination drives accelerated and economic activities resumed. Notably, a surge in "revenge buying" contributed to substantial sales spikes, particularly in apparel and fashion accessories. Also, strategic acquisitions by major retail players like Reliance Retail Ventures and Aditya Birla Fashion have underscored consolidation efforts within the industry, aiming to strengthen market positions and expand portfolios. The resurgence of brick-and-mortar stores alongside the continued expansion of e-commerce further highlight the dynamic nature of India's fashion retail landscape, expected for continued growth and innovations over the forecast period.

Fashion Retail – Overview

Fashion retail involves the buying and selling of clothing, footwear, accessories, and related products through physical stores, online platforms, and catalogs. It encompasses product design, manufacturing, distribution, and sales to consumers. Key aspects include offering a diverse product range influenced by social media and cultural trends, supported by targeted marketing and branding strategies. Efficient supply chain management ensures timely delivery and inventory control. Customer experience is enhanced through personalized service and seamless online shopping. The industry navigates seasonal trends and rapid style changes, requiring creativity and operational flexibility to meet consumer demands in a competitive global market.

India Fashion Retail Market

Growth Drivers

Increasing Influence of Global Fashion Trends and Western Culture

The influence of global fashion trends and Western culture on India is profound and multifaceted. As a melting pot of diverse cultures, India has embraced and adapted Western fashion, leading to a significant transformation in clothing preferences and societal norms. The adoption of Western styles like jeans, casual wear, and tailored suits has become increasingly prevalent, reflecting changing lifestyle choices and globalized tastes among Indian consumers. This shift is driven by factors such as rising disposable incomes and a growing young population eager to embrace modern trends. However, alongside this adaptation, traditional Indian attire remains deeply rooted in cultural ceremonies and daily wear, highlighting a dynamic coexistence of Western and ethnic fashion influences. Overall, India's fashion landscape illustrates a nuanced interplay between global trends and indigenous cultural expressions, shaping a vibrant and evolving sartorial identity.

Challenges

Increasing Prevalence of Counterfeit Products

The India Fashion Retail Market faces significant challenges due to the increasing prevalence of counterfeit products. Counterfeiting undermines consumer trust and brand integrity, leading to revenue losses for legitimate retailers and brands. It also poses risks to consumer health and safety, as counterfeit products often do not meet quality standards. Efforts to combat counterfeiting through stricter regulations and enhanced consumer awareness are crucial to safeguarding the integrity of the fashion retail industry in India and fostering sustainable growth.

Impact of Escalating Geopolitical Tensions on India Fashion Retail Market

Geopolitical tensions can have a multifaceted impact on the India Fashion Retail Market. These tensions can disrupt international trade and supply chains, affecting the availability of imported materials and finish goods. This disruption often leads to increased costs and delays in production and distribution, thereby influencing retail prices and consumer affordability. Moreover, geopolitical uncertainties may reduce consumer confidence and discretionary spending on fashion items. Fluctuations in exchange rates and changes in trade policies influenced by these tensions further complicate business operations for retailers, particularly those dependent on imports or global partnerships. Navigating these challenges effectively is crucial for maintaining stability and sustaining growth in India's vibrant fashion retail sector.

India Fashion Retail Market

Segmental Coverage

India Fashion Retail Market – By Product Type

By type, the India Fashion Retail Market is divided into Apparel, Footwear, and Bags & Accessories segments. The apparel segment holds the highest share in the India Fashion Retail Market by product type. It is evidenced by its leading role in retail store leasing across major cities in early 2024. Contributing 40% to the total leasing volume of 1.1 million square feet, the fashion and apparel sector demonstrated robust growth, with mid-segment brands capturing 40% and value segment brands closely following at 38%. This data underscores the sector's strong market presence and consumer demand, highlighting its pivotal role in shaping the retail landscape. The trend reflects a burgeoning preference for diverse apparel options, driving the sector's ascendance as a cornerstone of India's retail market dynamics.

India Fashion Retail Market – By Price

Based on price, the India Fashion Retail Market is divided into Premium/Luxury, Mid-Range, and Mass Market segments. The mid-range segment holds the highest share in the India Fashion Retail Market by price. It is primarily driven by its appeal to a broad consumer base seeking both affordability and quality. It caters effectively to India's diverse demographic, blending style with accessibility. As disposable incomes rise and consumer preferences evolve, mid-range brands capitalize on this momentum, expanding their presence across urban and rural markets alike. This segment's success underscores its pivotal role in shaping India's fashion retail landscape, offering a compelling blend of fashion-forward designs and competitive pricing strategies to meet growing consumer demands. Also, the mass market segment is expected to witness the fastest growth rate during the forecast period. Following the success of brands like Zudio, national retailers such as Yousta (Reliance Retail), Style-Up (ABFRL), and InTune (Shoppers Stop) are increasingly targeting budget-conscious consumers. It is driven by factors like rising disposable incomes, urbanization, and a growing millennial and Gen Z demographic. The shift towards organized players from regional retailers underscores a strategic move towards capturing market share through enhanced customer experience and expanding retail footprints.

India Fashion Retail Market – By Distribution Channel

Based on distribution channel, the India Fashion Retail Market is split into Online and Offline segments. The online segment holds a higher share in the India Fashion Retail Market by distribution channel. With the proliferation of e-commerce platforms, fashion enthusiasts across the country now have access to a diverse range of products at their fingertips. This shift is driven by factors such as increasing internet penetration, smartphone usage, and the convenience of doorstep delivery, especially appealing to younger demographics. As a result, online channels have surpassed traditional brick-and-mortar stores in capturing consumer attention and spending. The trend towards online shopping is expected to continue its upward trajectory, reshaping the retail landscape and setting new benchmarks for customer engagement and satisfaction in the fashion industry.

India Fashion Retail Market – By Region

Geographically, the India Fashion Retail Market is divided into North India, South India, East India, and West India regions. The North India holds the highest share in the India Fashion Retail Market and is expected to maintain its dominance throughout the forecast period. Cities like Delhi/NCR is a major contributor, boasting a high concentration of employed youth, affluent households, and a strong inclination towards fashion trends driven by Bollywood influences. The region's urban markets contribute significantly, representing 60% of fashion apparel consumption, fueled by a preference for fast fashion and premium brands. Moreover, North India serves as a launchpad for international brands entering the Indian market, capitalizing on the region's fashion-conscious population and willingness to spend on latest trends. This dominance is expected to persist, underpinned by robust economic activities and evolving consumer preferences towards branded and trendy apparel.

Competitive Landscape

Major players operating in India Fashion Retail Market include Aditya Birla Fashion and Retail Limited, Max Fashion, Shoppers Stop Limited, The Raymond Group, Gucci, PUMA, Biba, Provogue (India) Limited, Nike, Zara, H&M, and Fabindia. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2024 - Apparel Group's fashion brand Rare and Basics (R&B) expanded its presence in India with the inauguration of its 22nd store, located in Palarivattom, Kochi. This marks R&B's sixth outlet in Kerala, offering a variety of Western wear for men, women, and children.

• In May 2024 - Reliance Retail struck a long-term licensing deal with ASOS, UK's top online fashion retailer, to exclusively bring its fashion-forward own-brand labels to India. This partnership will see ASOS products available across various retail formats including exclusive brand stores, multi-brand outlets, and digital platforms.

Scope of the Report

By Product Type

• Apparel

• Footwear

• Bags and Accessories

By Price

• Premium/Luxury

• Mid-Range

• Mass Market

By Distribution Channel

• Online

• Offline

By Region

• North India

• South India

• East India

• West India