India’s fashion market grows in both budget and high-end categories
09 May, Mumbai 2025
Undergoing a dramatic shift, India's fashion market is growing in both the budget and high-end categories. Brands like Zudio are flourishing in smaller towns while luxury names such as Sabyasachi are making significant inroads in Mumbai's malls, Alpana Razdan, Country Manager, Falabella and Co-founder, AtticSalt, points out.
A standout performer, fast fashion is expanding at a rapid rate of 30 per cent-40 per cent in FY24, exceeding the broader industry's 6 per cent Y-o-Y growth. Currently valued at around $10–11 billion, this segment is projected to grow to over $50 billion by FY '31 as brands like Zudio aggressively boost their reach and store counts.
Doubling its store presence in just two years, Zudio has surpassed $1 billion in annual revenue, selling 90 T-shirts every minute and updating its inventory every 15 days to keep up with trends. Its strategy involves ultra-affordable pricing, minimal marketing spend, and a sharp focus on India's expanding middle class.
India's premium and ethnic wear market is also booming, fueled by an estimated Rs 11 trillion ($130 billion) wedding industry and rising incomes that are blurring the lines between special occasion attire and everyday luxuries.
The ethnic wear segment is expected to hit $30 billion by 2030, with brands growing by over 7 per cent annually. Brands like Sabyasachi and Zara are catering to a growing demand for luxury, exclusivity, and the overall brand experience for aspirational shoppers.
Brands like Zudio are offering lower price points and broader accessibility, capturing the largest market share, while premium brands are maintaining high profit margins and customer loyalty. Tier-II and Tier-III cities are accelerating digital adoption and boosting demand for affordable, trendy fashion. Over 800 direct-to-consumer (D2C) brands, valued at over $80 billion combined, are moving into physical retail spaces, increasing their visibility and reach in multi-brand stores.
As both fast fashion and premium segments flourish, India's fashion narrative is unfolding in diverse spaces, from wedding ceremonies to local markets.
