Travel & vacation boom leads to a boost in fashion & apparel sector’s sales

India's fashion and apparel industry is seeing a boom riding high on the ongoing travel and vacation season. As more Indians embark on both domestic and international trips, the demand for stylish clothing, travel accessories, and vacation-wear has skyrocketed, leading to robust sales growth across various segments of the sector.

Rising demand across categories

The travel boom has led to demand across a wide range of fashion categories. According to recent reports, luggage and travel accessories have seen exponential growth. Myntra, the leading e-commerce platform, reported a fivefold increase in trolley bag orders and a doubling of backpack demand in March-April 2025, compared to the preceding months. Demand for sunglasses has also seen an extraordinary jump.

As per Neha Wali, Senior Director-Category Management, Myntra, the current travel and vacation season is driving strong, multi-category growth on Myntra, with customers across the country—especially from non-metros—shopping for everything from stylish luggage and on-the-go beauty essentials to breezy vacation fashion. Apparel and footwear suitable for vacations such as, sundresses, skirts, shorts, cotton shirts, and swimwear, are seeing strong traction. Brands like H&M, Mango, Puma, and others are benefiting from this high demand.

E-commerce leads the charge

E-commerce platforms are playing an important role in meeting this demand growth. Their reach, convenience, and quick delivery options, including quick-commerce services like Myntra's M-Now, cater to the last-minute needs of travellers. This has particularly benefited non-metros, where a significant portion of the demand for travel and luggage products now originates. The growth of online shopping is also reflected in the overall market trends. The Indian apparel market is projected to grow at a compound annual growth rate (CAGR) of 9.7 per cent from 2024 to 2028, reaching a market size of $50 billion by 2028.

Factors driving growth

Several factors are leading to this growth. Rising disposable incomes are enabling more Indians to travel and spend on leisure activities, including shopping for travel-related fashion. And growing awareness of fashion trends and a desire to maintain a stylish appearance while travelling are driving the demand for fashionable travel wear.

Gen Z's appetite for trendy, quick-turnaround clothing influenced by social media, is also contributing to the growth of the fast-fashion segment, further boosting the apparel sector. The growing penetration of e-commerce and the convenience it offers are making it easier for consumers to shop for travel-related fashion. No wonder, after a period of slower growth, the Indian fashion and apparel sector is recovering.

Industry outlook

The outlook for the sector remains positive. India Ratings and Research (Ind-Ra) predicts a recovery in FY26 pushed up by improved consumer financial health, higher wedding-related demand, and the growth of organized retail formats, including fast fashion. "Segments like fast fashion, ethnic wear, and luxury are set to outperform," says the report.

However, while the travel and vacation boom presents significant opportunities for the fashion and apparel sector, some challenges remain. These include. Inventory management as retailers need to manage their inventory effectively to meet the fluctuating demand and avoid obsolescence. Also competition from both domestic and international players is on the rise. Efficient supply chain management is crucial to ensure timely delivery and meet the demands of the fast-paced fashion industry.

However, the industry is also witnessing positive developments in terms of Government support as initiatives like the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) Parks and the Production Linked Incentive (PLI) scheme are supporting the growth of the sector. An increasing number of brands and manufacturers are adopting sustainable practices, which is appealing to environmentally conscious consumers. Add to it the adoption of technologies like AI and automation is improving efficiency and enhancing the customer experience.

Thus the ongoing travel and vacation season is proving to be a significant growth driver for India's fashion and apparel sector. With rising disposable incomes, increasing e-commerce penetration, and evolving consumer preferences, the industry is poised for continued expansion. While challenges remain, the sector's adaptability, focus on innovation, and government support will enable it to capitalize on the opportunities presented by the travel boom and maintain its growth path.