Meta Description: Why do some celebrity fashion brands fail in India? Find out about the key challenges and the strategies needed for long-term success in the competitive apparel sector.

The allure of celebrity is undeniable. In India, where stars are practically deities, the idea of a fashion brand bearing their name seems like a guaranteed goldmine.

Yet, the reality paints a different picture. While global icons like Rihanna and Kylie Jenner have built formidable fashion empires, their Indian counterparts often struggle to achieve lasting success. Why does this star-studded venture so often lead to a dimming light in the Indian apparel sector?

Fashion Guru

The short-term spark

The primary reason brands, or celebrities themselves, opt for this route is the promise of instant visibility. A famous face can catapult a product into the spotlight overnight, attracting attention that would otherwise take years to cultivate. This is particularly tempting in a fiercely competitive market.

Quick brand recognition: Celebrities bring a pre-existing fan-base and recognition, instantly lending credibility to a new venture.

Marketing leverage: Their social media presence and public appearances provide free and powerful marketing platforms.

Attract investment: Star power can attract investors and partners, boosting initial growth.

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However, this reliance on instant gratification often overshadows the crucial need for long-term brand building. In fact, the impact of celebrity endorsement is a double-edged sword. Brands like Rihanna's Fenty and Kylie Cosmetics demonstrate the power of authenticity and a strong product.

These celebrities didn't just lend their names; they were deeply involved in the creation and promotion, ensuring quality and relevance. These brands also focused on filling market gaps, offering inclusive ranges and innovative products that resonated with their target audiences.

Unsuccessful attempts in India

However, in India there a numerous cases of unsuccessful collaborations for example, Anushka Sharma’s Nush launched with much fanfare, Nush aimed to provide affordable and trendy clothing for young women.  However, the brand struggled to differentiate itself from established fast-fashion retailers.

Consumers criticized the lack of unique designs and perceived quality issues. This highlights the importance of creating a distinct brand identity and ensuring product quality.

Similarly, Deepika Padukone’s ‘All About You’ partnered and positioned itself as a comfortable and stylish brand for modern Indian women. Despite Padukone's popularity, the brand failed to make a significant impact in the crowded e-commerce market.

The brand lacked a strong USP, and was over shadowed by other e-commerce brands. This shows challenges of competing in a saturated market without a clear differentiator. Another example is Sonam Kapoor-Rhea Kapoor’s brand Rheson.

Designed to cater to modern women seeking sophistication, Rheson faced fierce competition from established fashion labels. While the brand had creative designs, it did not capture a large market share. This example shows how hard it is to penetrate an already well established market.

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The lack of design consistency and perceived quality issues eroded consumer trust. Overemphasis on the celebrity image, without a corresponding focus on product excellence, led to a disconnect with discerning consumers. And most importantly, the Indian market is very price sensitive, and if the product pricing does not match the product quality, customers will not buy.

The issue isn't necessarily the stars themselves, but rather the usage and positioning of their brands. Many Indian celebrity brands seem to lack a clear creative direction, resulting in generic designs and a diluted brand message.

Also, brands that fail to differentiate themselves from existing market players struggle to gain traction. Simply slapping a celebrity's name on a product is not enough. And brands must prioritize consumer needs and preferences, offering value beyond the celebrity's image.

Why stars keep shining

Despite the relatively low success rate, celebrities continue to be sought after for endorsements and brand collaborations. This is due to several factors:

The power of influence: Celebrities still hold immense sway over consumer behavior, particularly in India.

Social media dominance: Their online presence allows for direct engagement with millions of potential customers.

The pursuit of quick wins: Brands often prioritize short-term gains over long-term sustainability.

The aspirational value: Indian consumers still look up to celebrities and want to emulate their style.

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Therefore, for Indian celebrity fashion brands to achieve lasting success, they must establish a strong brand identity. Define a unique niche and offer products that resonate with a specific target audience. Invest in high-quality materials and craftsmanship, ensuring that products meet consumer expectations. And create a seamless and engaging customer journey, both online and offline.

They should move beyond short-term marketing gimmicks and build a sustainable brand with a clear vision. What’s more, consumers are mostly looking for authentic brands therefore, they want to see that the celebrity is truly involved in the brand.

While the allure of celebrity can provide a powerful launch-pad, it is not a substitute for solid business strategy and a genuine commitment to quality. By prioritizing these elements, Indian celebrity fashion brands can move beyond the fleeting spotlight and build lasting legacies in the competitive apparel sector.

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Sabyasachi Mukherjee's statement, "India can become the champion of the global luxury market," may not be hyperbole. The Indian luxury market is experiencing a period of remarkable growth, driven by a booming economy and changing consumer preferences. A closer look at the stats, trends, and challenges reveals a market brimming with potential.

Numbers reflect the growth story

Indeed, Mukherjee's comments are backed by figures. India’s luxury market was valued at approximately $8.5 billion in 2023. The market is expected to grow at a robust compound annual growth rate (CAGR) of around 15-20 per cent over the next few years. And by 2027, it is projected to reach $18.3 billion, making it one of the fastest-growing luxury markets globally. Fashion and lifestyle segments are expected to lead growth, driven by increasing disposable incomes, changing consumer preferences, and a growing appetite for premium brands.

And what is boosting this growth is India’s thriving economy. It serves as a powerful catalyst for the luxury market's growth. A growing middle class with higher disposable incomes is pushing up demand for luxury goods and experiences. And India's young population is more receptive to global trends and aspirational brands, further helping the market to grow. This coupled with rapid urbanization is creating new hubs of luxury consumption, expanding the market's reach. And increased internet access and e-commerce platforms are making luxury products more accessible to a wider audience.

Fashion, lifestyle leading growth drivers
Fashion and lifestyle segment, particularly high-end apparel, accessories, and footwear, is leading the luxury market's growth. And consumers are increasingly seeking unique and personalized experiences, driving growth in luxury travel, hospitality, and fine dining. In all this, e-commerce and social media are playing a pivotal role in expanding the reach of luxury brands and influencing consumer choices. What’s more the aspiration for luxury is spreading beyond metros, creating opportunities in Tier II, III cities.

In terms of sectors, domestic or homegrown luxury brands are gaining prominence, catering to the growing demand for products that blend tradition with contemporary design. Bespoke luxury is also gaining traction as consumers are seeking unique and personalized products, creating. And with increasing awareness of ethical and sustainable practices, demand for luxury brands that prioritize eco-friendliness is also on the rise.

However, steep import duties make luxury goods expensive, limiting accessibility for a wider consumer base. And the prevalence of counterfeit products and poses a challenge to genuine luxury brands. The lack of adequate luxury retail infrastructure in smaller cities can is another bug bear that effects market growth.

Despite challenges, the Indian luxury market presents immense opportunities for both domestic and international brands. As the economy continues to grow and consumer preferences evolve, India has the potential to become a major player in the global luxury landscape. The key to success lies in understanding the unique dynamics of the Indian market and adapting strategies accordingly. Indeed, Mukherjee's vision of India as a "champion of the global luxury market" is not far-fetched. The current trajectory suggests a promising future. With a thriving economy, a young population, and a growing appetite for luxury, India is well-positioned to take center stage in the global luxury arena.

In the fast-paced world of fashion, where trends shift as quickly as the seasons, Indian consumers are increasingly demanding instant gratification. The age-old adage "time is money" has taken on a new meaning, with the speed of delivery becoming a pivotal factor influencing buying behavior.

In fact, the demand for fast delivery is a global phenomenon. A 2023 study by MarketingProfs revealed almost 53 per cent shoppers have abandoned purchases due to slow delivery times. In India, this trend is particularly pronounced, pushed on by a burgeoning e-commerce market that was valued at $14 billion in 2023 and is projected to nearly reach $19 billion by 2030. A RedSeer report revealed the quick commerce market in India is expected to grow to $5.5 billion by 2025, with growing demand for rapid deliveries across various categories, including fashion.

While the terms ‘quick commerce’ and ‘fast delivery’ are often used interchangeably, there is a subtle difference. Fast delivery typically refers to deliveries within 1-2 days, while quick commerce promises delivery within hours, or even minutes. The latter is typically associated with smaller, high-frequency purchases like groceries and essentials.

Indeed, technology is playing a crucial role in enabling fast delivery. AI and Machine Learning technologies are used to predict demand, optimize routes, and streamline warehouse operations. Companies like Dunzo, Zepto, Instamart are leveraging hyperlocal networks to offer deliveries within hours, sometimes even minutes. And while still in its nascent stages, drone delivery holds immense potential for revolutionizing last-mile connectivity, especially in remote areas.

Fashion brands join quick commerce race

In their race to reach consumers quickly many brands are tying up with quick commerce players for faster delivery. Last week, US Polo Assn. (USPA), the official brand, has partnered with Zepto, to offer its exclusive fashion collection. Zepto, known for its 10-minute delivery service, is expanding its portfolio to include premium apparel, with USPA as the first major fashion brand to join the platform.

This partnership ushers in a new era for consumers, combining the convenience of shopping for everyday essentials like groceries and personal care items with the quick delivery of high-end international fashion — all in just minutes. Shailesh Chaturvedi, MD and CEO of Arvind Fashions says, “With US Polo Assn’s sporty coolness and Zepto’s rapid delivery, we are bringing a new level of accessibility and convenience to our customers. That’s such an exciting trend setting solution for modern day needs of our consumers.”

Similarly, Myntra, one of India's leading fashion e-commerce platforms, recognized the need for speed early on. Its 'M-Express' service promises delivery within 24-48 hours in select cities. The company reports a significant increase in customer satisfaction and repeat purchases since the launch of this service.  

Challenges of fast delivery
While fast delivery is a boon for consumers, it presents significant challenges for businesses. Ensuring speedy delivery necessitates a robust logistics network and efficient last-mile connectivity. In a country as vast and diverse as India, this can be a daunting task. Maintaining adequate inventory to meet the demands of fast delivery requires sophisticated inventory management systems and real-time data analytics. Moreover expedited shipping often comes at a higher price tag, which can impact profits.

Despite these challenges, the demand for quick commerce in fashion is set to intensify in India, driven by changing consumer expectations and technological advancements. Retailers who can adapt to this new paradigm and provide seamless, speedy deliveries will thrive in this competitive landscape. 

India's wedding industry, valued at almost $130 billion – nearly twice the size of the American market is a force to be reckoned with. With 8-10 million weddings taking place annually, it's no surprise that Indians are pulling out all the stops for their big day. As Jefferies investment bank reports, "In an otherwise value-conscious society, Indians love to spend on weddings, which could be disproportionate to their level of income or wealth."

This lavish spending creates a massive opportunity for various sectors, with fashion and apparel taking center stage. But just how big is this slice of the wedding pie, and who are the key players vying for a piece of the action?

Fashion's share of wedding industry

While precise figures on fashion's share within the Indian wedding market are hard to pin down, anecdotal evidence and expert opinions suggest it's significant. Consider this: a typical Indian wedding involves multiple events, each requiring a different outfit for the bride, groom, and close family members. From intricately embroidered lehengas and opulent sherwanis to dazzling saris and tailored suits, the demand for wedding attire is insatiable.

While the Ambanis and other ultra-rich families may set the bar with their multi-million dollar extravaganzas, the Jefferies report highlights a fascinating trend: Indians across all income levels prioritize wedding spending, often exceeding what might be considered proportionate to their wealth. The average luxury wedding can cost anywhere between $240,000 to $360,000, with the upper end of the spectrum soaring into millions . A significant chunk of this undoubtedly goes towards fashion.

The designer vs. branded conundrum
The Indian wedding wardrobe is a playground for both designer and branded garments. Designer wear, with its bespoke creations and intricate craftsmanship, caters to the affluent segment willing to splurge on exclusivity. Branded garments, on the other hand, offer a blend of style and affordability, making them accessible to a wider audience. Both segments present lucrative opportunities, with the choice often dictated by budget and individual preferences.

Ethnic wear commands a lion's share of the market, estimated to be upwards of 80 per cent. While western wear has made inroads, particularly for pre-wedding events, ethnic attire remains the heart and soul of Indian wedding fashion.

Metros lead, Tier II cities catching up
Metros like Delhi, Mumbai, Bangalore etc are home to a large concentration of high-net-worth individuals and are major drivers of luxury spending in the wedding industry. Designer boutiques and flagship stores of leading brands thrive in these cities.

Tier II cities like Chandigarh, Jaipur, Lucknow among others too are witnessing a rapid rise in disposable incomes and a growing aspiration for upscale weddings. This presents a significant opportunity for both designer wear and branded garment players to expand their reach and cater to this emerging market. While weddings in smaller towns and rural areas may be more budget-conscious, there's still a strong emphasis on traditional attire and festive dressing. This segment is primarily catered to by local artisans, smaller boutiques, and regional brands.

Despite the booming market, the Indian wedding fashion industry faces many challenges. Since the market is highly fragmented with a mix of established players, emerging designers, and local artisans competition is tough among them. While Indians are willing to spend on weddings, price remains an important consideration, especially for budget-conscious consumers. What’s more now there's growing awareness of the environmental impact of fast fashion, prompting a shift towards sustainable and ethical practices in the wedding industry.

However, the fact is, Indian wedding industry is a goldmine for the fashion and apparel sector. With its sheer size and growth potential, it presents a unique opportunity for designers, brands, and retailers to cater to a diverse and aspirational market. As Indians continue to splurge on their big day, the wedding fashion scene is poised for even greater heights.

Renowned designer Rohit Bal is set to headline the Lakme Fashion Week x FDCI 2024 grand finale in collaboration with The House of Lakme. Scheduled for Sunday, October 13, the show promises to captivate with Bal’s intricate embroidery and nature-inspired designs.
Lakme Fashion Week’s Instagram shared a video showcasing highlights from Rohit Bal's past runway shows, generating excitement among fans and fellow designers. Abhishek Sharma, Bal’s former student, described it as the highly anticipated finale, while art curator Shalini Passi extended her congratulations. Many enthusiasts expressed their excitement, praising Bal and looking forward to the upcoming show.
Rohit Bal’s collection this season centers around roses, symbolizing beauty and transformation. He emphasized the significance of closing Lakme Fashion Week, highlighting that the collection celebrates the beauty of nature while offering the audience a chance to appreciate the intricate artistry of fashion.
Bal's history at Lakme Fashion Week includes memorable moments, such as a grand finale at the Grand Hyatt where his Indo-Western designs received a standing ovation. This year’s show is expected to be no different, showcasing his signature craftsmanship.

Global fast-fashion giants like Zara (Inditex), H&M, Uniqlo (Fast Retailing), and Gap have made significant inroads into the Indian market, catering to the growing demand for trendy and affordable fashion. So what’s driving them in India and what is there growth story?

Target consumer groups
Each of these fast fashion brands have carved a niche while competiting with other global and domestic brands.

Zara for example, targets fashion-forward individuals, primarily in the age group of 18-35, belonging to the upper-middle and high-income segments. These consumers are trend-conscious, seeking the latest styles at affordable prices.
H&M too caters to a similar demographic as Zara but also extends its appeal to families and young adults looking for value-for-money fashion options. Japanese brand Uniqlo a late entrant is now providing high-quality, functional clothing with a minimalist aesthetic, appealing to a wider age group, including professionals and individuals seeking comfortable and versatile attire. While Gap targets a family-oriented audience, offering a range of clothing and accessories for men, women, and children, focusing on casual and classic styles.

Table: Retail presence in India

Zara and H&M lead the market in terms of revenue and profitability, given their extensive retail presence and strong brand recognition in India. Uniqlo, however, is steadily expanding its footprint and gaining traction among Indian consumers. Gap, while having a limited presence, is focusing on its core strengths of family-oriented fashion and brand loyalty.

Focus growth areas

Zara: Zara plans to continue its expansion in Tier I and II cities, targeting a store count of 30-35 in the next few years. The brand will also focus on enhancing its online presence and omnichannel capabilities.
H&M: H&M aims to further strengthen its position as a leading fast-fashion retailer in India, expanding its store network to 70-80 stores and investing in sustainable fashion initiatives.
Uniqlo: Uniqlo plans to aggressively expand its presence in India, targeting a store count of 50-60 in the next five years. The brand will also focus on localizing its product offerings and strengthening its online platform.
Gap: Gap aims to consolidate its position in the Indian market, focusing on its core strengths and leveraging its global brand recognition. The brand plans to expand cautiously, targeting key metropolitan areas and strengthening its online presence.

Interestingly a common thread for all retailers is that they are eyeing the vast potential in Tier II, III cities, where increasing disposable incomes and aspirations are driving demand for branded fashion. E-commerce is a key growth driver for all of them, as it provides access to a wider consumer base and enables seamless shopping experiences. With increasing awareness of environmental and social issues, sustainable fashion is emerging as a key focus area for them. They are also focusing on adapting products and designs to cater to Indian preferences and sensibilities.

The moot point remains, global fashion retailers have made significant inroads into the Indian market, offering diverse styles and catering to various consumer segments. Their future plans and focus areas indicate their commitment to the Indian market and their anticipation of continued growth and success in the years ahead. As the Indian retail landscape continues to evolve, these brands are poised to play a pivotal role in shaping the fashion choices and shopping experiences of consumers across the country.