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Despite a sluggish consumption landscape, India’s fast fashion defied the odds and emerged as a shining star in India’s retail market. While the overall fashion industry in India experienced a modest 6 per cent year-over-year (YoY) growth in FY24, fast fashion surged ahead with a remarkable 30-40 per cent growth rate. This is just the beginning of a promising journey for fast fashion in India. To put this into context, the Indian fast fashion market, valued at approximately $10 billion, still lags behind the global giant Shein, which alone boasts a larger market size. With vast room for growth, a report from Redseer Strategy Consultants, forecast that fast fashion in India is poised to become a staggering $50 billion-plus opportunity by FY31.
Fuel behind the flame of success
The fast fashion landscape in India is segmented into three distinct categories based on price points by Redseer: ultra-value, mid-value, and premium. Each segment demands unique business and operating model strengths to achieve success. Ultra-value brands rely heavily on agile supply chains to profitably offer low-priced products. This is often achieved through large-scale operations, which enable cost efficiencies. As a result, large conglomerates are likely to dominate this segment, investing heavily in scalability.
Premium brands thrive on strong brand recognition and loyalty, catering to India’s aspirational consumers. This segment is poised to attract an influx of global and Indian designer brands, capitalising on the trend of customers purchasing premium goods.
The mid-value segment is a hotbed for digital-first entrants. Low entry barriers and experimental consumer behaviour characterise this space, fostering intense competition. To stand out, brands must offer distinctive value propositions that resonate with customers. This segment is expected to be highly dynamic, with innovative brands capturing significant attention.
In FY24, men’s fast fashion embraced comfort and bold statements, with oversized T-shirts, graphic tees, printed shirts, trousers, and cargo pants dominating the trend landscape. As per the report, the next big wave will be Co-ords and versatile summer/all-time jackets, which will likely capture the attention of fashion-conscious men.
In the women’s fast fashion space, FY24 was marked by a love for stylish comfort, with dresses, wide-legged trousers, and Co-ords topping the charts. Looking into the future, Redseer predicts that occasional wear and shapewear will be the next game-changers in this category, offering women a perfect blend of style, comfort, and confidence.