23 February 2024, Mumbai 

The fashion industry is undergoing a radical transformation, driven by a wave of innovative startups challenging the status quo.

These young companies are strategically changing market dynamics, rewriting the rules of engagement with customers, and carving out new pathways for a more sustainable and inclusive future.

Multiple data-points

The global fashion tech market is estimated at $532.9 billion in 2023, and is expected to reach $1.8 trillion by 2028, at a CAGR of 23.9 percent, as per Allied Market Research. What works for startups is that they prioritize personalization, on-demand services, and direct-to-consumer strategies, fostering deeper customer relationships and bypassing traditional retail channels.

AI-powered tools analyze customer data to predict trends, optimize inventory, and personalize marketing campaigns. Eco-conscious startups are leading the charge, using recycled materials, upcycling processes, and transparent supply chains. What works for start-ups is their business model.

Key growth drivers

The growing smartphone penetration and mobile shopping convenience drive online fashion sales, a key market for startups. Social media platforms like Instagram and TikTok are powerful marketing tools, reaching targeted audiences and building brand communities. The market is being driven by millennials and Gen Z.

These generations prioritize experience over ownership, embracing sustainability, inclusivity, and personalized shopping, which aligns perfectly with many startup offerings.

What works for start-ups is:

Direct-to-Consumer (DTC) model: Bypassing traditional retailers, startups like Everlane and Reformation connect directly with customers, offering transparency in sourcing and production. This allows for faster trend adoption, reduced costs, and better brand control.

Personalization: Utilizing AI and analytics, startups like Stitch Fix and Rent the Runway personalize recommendations, optimize inventory management, and predict trends. They curate personalized shopping experiences, leveraging data and algorithms to recommend styles and sizes tailored to individual preferences.

Sustainability: Consumers are increasingly demanding eco-friendly options. For example, Patagonia and Veja champion ethical and eco-conscious practices, using recycled materials, fair trade labor, and minimizing environmental impact. This resonates with a growing segment of conscious consumers.

Technology integration: Virtual try-on tools and augmented reality experiences offered by startups like Zepeto and Wannaby bridge the gap between online and offline shopping.

Subscription services: Platforms like Nuuly and Le Tote offer clothing rental subscriptions, catering to the desire for variety and sustainability without ownership burden.

However, the path to a successful startup business is not easy. The market is saturated, making it difficult for new entrants to stand out. Moreover, brand building and customer acquisition are not easy tasks.

Building brand awareness and trust takes time and resources, especially against established players. Then, achieving sustainable margins can be challenging, particularly for smaller startups with limited economies of scale.

Curated solutions chronicled

The business models vary greatly, with some focusing on subscription boxes, curated shopping experiences, or DTC sales. Profitability depends on factors like product margins, customer acquisition costs, and operational efficiency.

Scalability can be achieved through partnerships, technology adoption, and expanding product offerings. While many startups started online, some are venturing into physical stores to offer a more immersive brand experience and cater to customers who prefer offline shopping.

Emerging landscape

Pop-up shops and collaborations with established retailers are gaining popularity.

Fashion startups are revolutionizing the industry with innovative approaches, catering to evolving consumer preferences, and driving positive change.

While challenges remain, their agility and focus on sustainability, personalization, and technology position them for continued growth and disruption.

As the industry evolves, it will be fascinating to witness the future pathways these innovative companies forge.

Latest Textile Events

23 February 2024, Mumbai

After a triumphant venture in the MENA region, CMAI is set to unveil the 'Brands of India' at BharatTex 2024, hosted by the Consortium of Textile Export Promotion Councils, supported by the Ministry of Textiles.

Scheduled from February 26 to 29, 2024, the CMAI Brands of India pavilion will grace Hall 12A of Bharat Mandapam, New Delhi.

Weave your success story

BharatTex serves as a prestigious platform to showcase the prowess of the Indian Textile industry, spanning from fiber production to retail. In line with this mission, the 'Brands of India' pavilion by CMAI aims to showcase the caliber of Indian apparel brands to the international community.

The initiative will feature over 100 leading apparel brands, such as Arvind, Zodiac, Raymond, Killer, Fab India, Biba, and many more esteemed names. Rajesh Masand, President, says, the initiative sets a new standard for promoting Indian apparel brands globally.

Quotes

Rahul Mehta, Chief Mentor, CMAI, adds that, aligned with the Make in India and 'Atmanirbhar Bharat' movements, the Brands of India initiative marks a critical advancement in establishing a platform for Indian apparel brands to penetrate the global market.

Very much aligned to trade's global aspirations; A dedicated platform is vital, as we are pretty well integrated into global supply chains, elevating the global visibility of Indian apparel brands, despite their competitive pricing and adherence to international quality standards, he adds.

Nuanced data-points

On a trajectory of robust growth, the Indian textile and apparel sector is projected & aiming to expand to $ 387.3 billion by 2028, with a notable CAGR of 14.59 percent.

Contributing approximately 2 percent, or around $ 70 billion, to the GDP and employing 45 million people directly, the sector stands as a cornerstone of the Indian economy, second only to agriculture.

With an 8.0 percent share of the country's total exports and a 5 percent share of global trade for the sector in 2022–23, India ranks as the 5th largest exporter of textiles and apparel.

In FY23, the sector achieved a record export value of $35.58 billion, with RMG contributing $ 16.19 billion.

Spotlight shifts to India

"The Indian textile industry is in sweet-spot and industry's deep insights into the textiles eco-system, honed over the last several decades, offer us a unique vantage point."

Latest Textile Events

24 February 2024, Mumbai 

Renowned American specialty retailer, Victoria’s Secret has expanded its presence in India with the opening of new stores in Gurugram and Mumbai.

The latest additions are located at Ambience Mall in Gurugram and Phoenix Marketcity in Kurla, Mumbai. Victoria's Secret is introducing its innovative ‘Store of the Future’ concept at these locations to offer customers a more engaging shopping experience. Both stores feature the complete range of Victoria's Secret beauty products and accessories, including the newly launched Bare Rose collection.

Tushar Ved, President, Apparel Group India, says, these additions align seamlessly with the company’s vision to offer unparalleled luxury and style to customers. He emphasised on the brand's commitment to provide immersive shopping experiences that highlight the iconic allure of Victoria's Secret.

Victoria's Secret forayed into the Indian market in 2021 through a partnership with Apparel Group India, initially establishing its presence with an e-commerce platform. Since then, the brand has been expanding its physical retail presence across the country.

In Q3 FY’23-24, Victoria's Secret opened over four new stores, including two in Pune, and one each in Hyderabad and Bengaluru. Additionally, it recently launched its first beauty store in Mumbai.

Founded in 1977 by Roy and Gaye Raymond, Victoria's Secret has evolved into a prominent American retailer of lingerie, clothing, and beauty products. It currently operates approximately 1,360 retail stores in 70 countries worldwide, according to its official website.

The brand’s expansion in India began in 2022 with the opening of its first physical store at Palladium Mall in Mumbai, followed by another store at Ambience Mall in Vasant Kunj, New Delhi. Subsequently, Victoria's Secret continued its expansion by inaugurating its first store in Pune at Phoenix Mall of the Millennium in November 2023.

Latest Textile Events

 23 February 2024, Mumbai

An esteemed apparel and fashion brand hailing from Mumbai, Bombay Shirt Company has expanded its reach with the inauguration of a new store at the Nexus Select Citywalk in Saket, Delhi. Situated on the mall's second floor, this latest addition underscores the company's commitment to providing its clientele with convenient access to its offerings.

Established in 2012, Bombay Shirt Company has carved a niche for itself in crafting custom shirts tailored for both men and women, with an emphasis on e-commerce as evidenced by its LinkedIn profile. Bolstered by a recent funding round of $8 million, the company boasts a diverse portfolio encompassing brands such as Bombay Shirt Company, Cityof, Korra, and Pause.

As per the company's official website, Bombay Shirt Company has established its presence across several key cities. These include Ahmedabad, Chennai, Hyderabad, Jaipur, and Pune, each hosting one store, while Bengaluru accommodates three outlets. In the Delhi-NCR region, the company operates four stores, and in Mumbai, it boasts seven locations.

Additionally, Bombay Shirt Company has ventured into the international market with a store in New York, culminating in a total of 20 stores worldwide. This expansion mirrors the brand's commitment to offering high-quality apparel to discerning customers globally.

Latest Textile Events

 23 February 2024, Mumbai

United Colors of Benetton unveils its Spring/Summer 2024 collection, encapsulating the essence of summer with a fusion of timeless elegance and contemporary flair. Under the creative direction of Andrea Incontri, the collection, themed ‘Be On,’ showcases a vibrant array of garments designed to celebrate individuality and style.

Denim takes center stage, featuring prominently across various pieces such as miniskirts, jumpsuits, and jeans in diverse silhouettes. The collection embraces utility-driven designs, with unlined blazers, buttoned dresses, and midi skirts offering versatility for everyday wear.

Color remains a key element, with pastel shades infusing sophistication into tweed suits and sweaters adorned with rhinestone collars. Vibrant hues like red, green, pink, and blue dominate summer blazers and t-shirts, while fruity prints and floral motifs add a whimsical touch.

The iconic polo shirt receives a contemporary twist, transcending gender boundaries with its democratic elegance. Stripes make a bold statement across poplin shirts and cotton jerseys, adding versatility to summer dressing.

Light-as-air knitwear, featuring crochet designs, complements skirts and maxi dresses, offering both comfort and style for the warmer months ahead. The collection for both men and women celebrates practicality and clean-cut aesthetics, with fun motifs adorning boxy shirts and oversized t-shirts.

Collared shirts, crafted from organic cottons or openwork jerseys, exude refinement and timeless appeal. Placed prints in refreshing hues of aqua green, light blue, and faded pink evoke the essence of summer, making United Colors of Benetton's SS24 collection a must-have for those seeking contemporary fashion with refined ease.

Latest Textile Events

23 February 2024

Mumbai In its ambitious foray into India, California-based lifestyle brand has partnered with Shoppers Stop to inaugurate five standalone stores within its first year and expand its presence further across 14 cities.

Highlighting the brand’s success, Natalie MacLennan, CEO, says, over 50 per cent of the brand’s sales originate from international markets outside the US, particularly in Europe and now, increasingly in Asia. Citing its scale and growth trajectory, MacLennan names India as one of the most exciting markets for the brand, driving Dockers' interest in the region.

The brand has forged a strategic alliance with Ace Turtle, a retail technology firm, to facilitate its entry into India's retail landscape. Known for its successful management of licenses for various fashion and lifestyle brands in India, including Lee and Wrangler, Ace Turtle will oversee Dockers' offline and online expansion.

Nitin Chhabra, CEO, Ace Turtle, says, Dockers’ comprehensive rollout plan includes launching the first store in Delhi, followed by four additional stores and exclusive partnerships with Shoppers Stop and Myntra, a prominent online marketplace.

With a vision to tap into India's vast market potential, Dockers aims to become a significant player outside the US. Emphasising the importance of an omnichannel approach, the brand aims to offer a seamless shopping experience to its customers, blending physical store interactions with online convenience.

In line with its commitment to local sourcing, Dockers plans to manufacture a significant portion of its inventory in India, gradually increasing the local component season by season. Approximately 65 per cent of the inventory will be locally produced, with the remaining 35 per cent sourced from the global supply chain.

As part of its expansion strategy, Ace Turtle will focus on key metropolitan cities such as Delhi, Mumbai, and Bangalore for initial store openings, with plans for broader expansion in the pipeline.

Latest Textile Events