India’s fast fashion market grows by 30% in FY24: Redseer Strategy Consultants
13 July 2024, Mumbai
Contrasting sharply with the overall apparel category's sluggish 6 per cent growth, India's fast fashion segment grew by 30-40 per cent in FY24. The country’s vibrant $10 billion fast fashion market is projected to soar to $50 billion within seven years, according to a new report by Redseer Strategy Consultants.
KushalBhatnagar, Associate Partner, notes, fast fashion is currently driving growth in the fashion industry. Apart from global brands like Zara and H&M, India’s fast fashion sector has been significantly boosted by homegrown brands like Zudio from the Tata group and online-first brands such as Newme, Urbanic, and Snitch.
SumitJasoria, Co-founder, Newme, adds, the success of fast fashion in India is being driven by global brands like Shein and Fashion Nova. Sheinepitomises ultra-fast fashion, accomplishing in seven days what others take two months to do, he adds.
The rapid growth of fast fashion is also being fueled by young consumers' desire to experiment with new trends and brands. Gen Z shoppers are particularly inclined to buy more clothes for social outings and to post on social media. With 362 million Instagram users in India, the majority being young, there is a strong drive towards fast fashion influenced by global trends and social media reels, notes Jasoria.
Last month, UK’s popular fashion e-tailerUrbanic launched a new brand, Savana, targeting Gen Z in India with limitless collections and styles. Rahul Dayama, Founding Partner, explains,the brand leverages Artificial Intelligence for predictive analysis, end-to-end logistics, and reducing dead stock. This helps minimise wastage.
Urbanic focuses on Tier I and II cities but sells across India online. Dayamaemphasiseson the brand’s psychographic approach, noting diverse customer bases including older individuals with youthful fashion preferences and Tier III city residents living a Tier I lifestyle.
However, the fast fashion industry also faces certain challenges, particularly in maintaining an agile supply chain to quickly transform emerging trends into market-ready clothing. Newme introduces 500 designs online weekly. Vedang Patel, Co-founder, The Souled Store, highlights the issue of market saturation, where identical designs become ubiquitous, leading to potential inventory problems when trends fade. A 10-year-old brand, The Souled Store thrives on timeless pop culture casual wear, growing at 60 per cent annually without relying on fast fashion.
Patel believes that as consumers' wardrobes fill up, they will make more discerning fashion choices. Conversely, Dayama is confident that fast fashion will continue to thrive, driven by the growth of social media platforms like Instagram and a competitive market. The Indian market is set to grow, and there’s room for many players, he concludes.
