India's online fashion, lifestyle market set to boom, Gen Z leading the charge, finds anew study
09 August 2024, Mumbai
India is rapidly emerging as a key market for global fashion and lifestyle brands, with online sales expected to skyrocket in the coming years, according to a new study, "E-Styling India: Decoding India’s Online Fashion and Lifestyle Shopping Trends." Conducted by Bain & Company in collaboration with Myntra, the report paints a rosy picture for the country's e-commerce landscape.
The study reveals that the Indian e-lifestyle market, currently valued at $16-17 billion, is poised to reach a staggering $40-45 billion by 2028, representing a growth rate of approximately 20% annually. This growth is being fuelled by a combination of factors, including rising disposable incomes, increasing internet penetration, and a burgeoning young population with a penchant for online shopping.
Gen Z leading the charge
One of the most striking findings of the report is the dominance of Gen Z consumers in the online fashion and lifestyle space. Over 175 million Indians shop for lifestyle products online, with Gen Z accounting for a significant portion of this figure. These young consumers are not only early adopters of trends but also have considerable spending power, making them a coveted demographic for brands.
"Gen Z is driving the growth of the online fashion and lifestyle market in India," said Anusha Ravi, Partner, Bain & Company. "Their digital-first mindset and willingness to experiment with new brands and styles are reshaping the industry."
Global brands flock to India
India's growing attractiveness as a lifestyle market is evident in the influx of global brands. The study found that 90% of the top 50 global brands are already present in the country, with half of them generating revenue exceeding $30 million. Moreover, over 60 new international brands are planning to enter the Indian market, underscoring the immense potential of this burgeoning sector.
"India offers a unique opportunity for global fashion and lifestyle brands to tap into a massive consumer base," said Amar Nagaram, CEO, Myntra. "The country's growing middle class, coupled with its increasing affinity for online shopping, creates a fertile ground for expansion."
Key trends driving growth
The report highlights several key trends shaping the Indian e-lifestyle market:
• Rise of ‘Trend-First’fashion: Consumers are increasingly seeking out fast fashion and trendy products, driving the growth of this segment. "There is a clear shift towards trend-based fashion, with consumers wanting to stay updated with the latest styles," said Rajiv Nair, CEO, Lifestyle International.
• Tier II and III cities: Beyond the metros, online fashion and lifestyle shopping is gaining traction in smaller cities, expanding the market reach for brands. "The penetration of smartphones and affordable internet has democratized access to fashion, leading to a surge in online shopping in Tier II and III cities," said Ankur Bisen, Senior Vice President, Technopak Advisors.
• Mobile dominance: Smartphones are the preferred device for online shopping, emphasizing the importance of mobile-optimized platforms. "Mobile shopping has become the norm for Indian consumers, and brands need to ensure a seamless mobile experience," said Nitin Bawri, Head of Marketing, Flipkart.
• Focus on Sustainability: Consumers are becoming more conscious of environmental impact, creating opportunities for sustainable fashion and lifestyle brands. "Sustainability is no longer a niche concern; it's a mainstream expectation. Brands that prioritize sustainability are gaining a competitive edge," said Sunita Narain, Director General, Centre for Science and Environment.
As India's e-lifestyle market continues to evolve, brands that can adapt to changing consumer preferences and leverage digital technologies are likely to emerge as winners in this dynamic and competitive landscape.
