India now holds the top position in global population rankings. As of mid-2023, India’s population is estimated at 1,428,627,663, making up 17.76% of the world’s total population. This makes India the most populous country, with a density of 481 people per square kilometer (1,244 per square mile), according to Worldometer’s elaboration of United Nations data.
The immense population creates vast potential for various businesses, with the fast fashion sector standing out. Driven by millennials and Gen Z, this market for affordable, trendy items priced between $5 and $30 is particularly promising.
Fast Fashion Boom in India
The Indian fast fashion market, driven by millennials and Gen Z, is particularly noteworthy. Its ability to deliver trendy and affordable styles swiftly has positioned it for exceptional growth. According to a report by Redseer Strategy Consultants, India’s fast fashion industry is projected to reach $50 billion by FY31.
In FY24, the fast fashion sector recorded an impressive growth rate of 30-40%, significantly outpacing the broader Indian fashion market’s growth of just 6%. This substantial increase underscores the strong demand for fast fashion’s frequent and diverse collection updates, which far exceed the traditional fashion model of 2-3 collections per year. Although the current market size is $10 billion, it remains relatively small compared to global leaders like Shein, which is over three times larger.
Market Segmentation and Trends
The study categorizes fast fashion brands into three segments based on pricing: ultra-value, mid-value, and premium. The mid-value segment is expected to see the most significant expansion due to its low entry barriers and a consumer base keen on experimenting with new styles. Brands that can offer unique and valuable products are likely to capture substantial market share.
For men, popular fast fashion items include oversized t-shirts, graphic tees, and cargo pants, with increasing interest in coordinated outfits and multi-season jackets. Women’s trends are currently led by dresses and wide-legged trousers, with future trends expected to include more occasional wear and shapewear.
MJ Mathew, who spent 25 years in branding and media consulting and helped launch FAZYO, a rapidly growing fast fashion brand chain in India, says, “Interestingly, a new category of shoppers has emerged, identified as ‘recreational fashion shoppers.’ These are individuals who view shopping as a form of recreation and entertainment. This group also includes those who shop to escape emotional overload. They demand immersive shopping experiences, such as mood lighting, ambient store scents, soothing music, and most importantly, the freedom to shop alone. Therefore, in fast fashion, it’s not just about providing great products at great value; it’s also about consistently offering positive shopping experiences.”
General Advice
The Indian fast fashion sector may face more challenges than its global counterparts due to a tendency to address issues reactively rather than proactively. Industry players must anticipate and prepare for crises related to water consumption and pollution, waste generation, chemical usage, carbon emissions, energy consumption, microplastics, deforestation, labor issues, and regulatory challenges. As these problems become social issues, India’s administration will implement solutions. Therefore, industry stakeholders and businesses must foresee these challenges and take necessary precautionary measures.
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