Fast fashion in India poised for explosive growth: Redseer Study
India's fashion scene is about to witness a revolution, driven by the breakneck pace of fast fashion. A new study by Redseer Strategy Consultants highlights, the Indian fast fashion industry is projected to grow to a staggering $50 billion market by FY 2031 (FY31). This signifies a massive leap from its current valuation of around $10 billion.
Millennials and Gen Z fuel the fire
The report highlights the growing influence of millennials and Gen Z as the key drivers of this growth. These demographics crave affordability and constant access to the latest trends, a void that fast fashion perfectly fills. Redseer points out that in FY24, while the broader Indian fashion sector grew by a modest 6 per cent, fast fashion increased at an impressive 30-40 per cent.
The allure of fast fashion
"Fast fashion has democratized the fashion industry," says Kushal Bhatnagar, Associate Partner at Redseer Strategy Consultants. "For millennials and Gen Z, it offers a game-changing experience – trendy styles at accessible prices." Redseer identifies five key ingredients that define a successful fast fashion brand in India:
• Timely trend Identification: The ability to spot and capitalize on emerging trends quickly is crucial. Fast fashion brands excel at identifying and capitalizing on the latest trends. This agility allows them to quickly adapt their offerings to what's hot, ensuring their collections resonate with trend-conscious consumers.
• Rapid prototyping & production: Fast fashion thrives on a speedy turnaround, churning out new collections at a much faster rate compared to traditional fashion houses. Redseer mentions a shift from the traditional 2-3 collections per year to a staggering 50 collections annually for fast fashion brands.
• Nimble supply chain: Maintaining a flexible and efficient supply chain is paramount to ensure swift production and delivery of trendy garments. A streamlined supply chain is the backbone of fast fashion. Brands prioritize quick turnaround times, allowing them to get new styles from design concept to store shelves in a remarkably short period.
• Attractive pricing: Affordability is at the heart of fast fashion's appeal. Brands need to strike a balance between offering trendy pieces and keeping them accessible to a budget-conscious audience.
• Effective customer engagement: Building a strong online presence and utilizing social media to create viral trends and drive customer engagement is essential for success in the fast fashion landscape.
A market ripe for the taking
While the Indian fast fashion market is currently valued at approximately $10 billion, Redseer's report suggests immense potential for growth. This is further emphasized by the fact that the Indian market is dwarfed by international giants like Shein, which is three times larger. This vast headroom for expansion signifies a lucrative opportunity for both domestic and international fast fashion brands.
The Redseer report concludes with a clear message: "The time to build a fast fashion brand in India is now." With the right approach and a focus on catering to the evolving needs of young Indian consumers, fast fashion is poised to become a dominant force in the country's fashion industry.
