With India continuing to have one of the youngest populations in the world, most digital-first fashion and lifestyle mid-market online brands being steered forward by Gen-Z and millennial shoppers, is all set to grow into a $10 billion industry by 2028 from the current $2.4 billion.

A joint report by leading management consulting firm, Bain & Company with TMRW – an Aditya Birla Group venture with a large number of disruptor Indian brands in the fashion & lifestyle space- have together pointed out the overall online fashion market will grow to around $35 billion at a rapid CAGR of 25 per cent by FY28.

The rise of e-commerce has opened up access to the mid-level fashion category pan-India, which has seen 30 per cent growth annually since 2019, as online shopping increased drastically over the Covid years and later. Easy delivery to smaller towns along with a variety of payment modes has helped international as well as domestic brands on e-marketplaces become household names.

The next phase of growth for these brands will be led by premiumization and growing customer preference for branded clothing. The Gen-Z and millennial consumer segments will ensure that 70-80 percent of online traffic will be for digital-first brands with their growing desire to wear new and more aspirational brands.

Digital disruptor brands will drive the fashion segment

The report highlighted the key factors driving growth in the global and Indian online fashion and lifestyle market, especially for digital disruptor brands. It also aimed to identify changes in consumer behavior over rapid digitization in the last four years along with understanding how to make the best profitability from current brands in this space.

Digital disruptor brands will rapidly grow in the next phase of market evolution -- especially in certain fragmented categories -- to a $2.4 billion market over the next few years. The focus will be on including more remote markets with a digital-first operating model that enables speed and data-led decision-making.

Developments

This will greatly help big fashion houses who have many sub-brands such as TMRW, who have recently increased their brand portfolio with a tie-up with eight more brands across fashion sub-categories, including Berrylush, Bewakoof and Juneberry and is set to include some more brands in coming months to make a more complete portfolio.

Bain and Company expects over 40 digital-first fashion and lifestyle brands in the Rs 50 - Rs 100 crore revenue range to join the e-commerce bandwagon by FY28, as this segment gradually becomes more lucrative.

“If today there are only 25 such brands over Rs 100 crore, within five years there could be 50 brands over Rs 200 crore in value. I think this is quite meaningful in the context of the broader fashion market in India that has historically been super fragmented," opines Radhika Sridharan, Partner, Bain’s and Co.

National brands expect $2.5 billion in online business in FY23

In order to seize the moment, many national brands have now invested in growing their e-commerce website businesses and have almost doubled their online share constituting a $2.5 billion online business in FY23, having grown at 34 percent in the last four years.

However, the good times are slowing down as the comfort of online shopping habits are waning in post-pandemic times with a more balanced growth pattern with mall shopping and offline channels becoming more popular once again.

Bouqut; Mega retail companies that form a house of brands rather than individual brands will do better as they ride on physical and digital marketplace infrastructure and have better shared horizontal investments and capabilities in technology and data science.

A more well-developed e-commerce infrastructure that helps brands to run lean and mean operations with lower overheads is paving the road ahead for the fashion and lifestyle Indian segment.

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12 September 2023, Mumbai

In a bold move that reaffirms its stronghold in the Indian kidswear market, Gini & Jony, the beloved brand known for dressing generations of children, has unveiled its new avatar, Gini & Jony 2.0. The brand's latest transformation is marked by the addition of over 50 retail outlets in the current quarter, augmenting its already extensive network of 500+ retail points.

Commitment to quality and legacy

Gini & Jony's enduring legacy, spanning four decades, has fostered a deep connection with its customers. This connection, cultivated through stylish and comfortable clothing, has now extended to the millennial generation who grew up wearing the brand. Gini & Jony remains steadfast in its commitment to delivering high-quality kids' fashion that caters to the ever-evolving demands of Indian families.

A new era of excellence

The newly appointed CEO, Prem Ranjan, expressed the brand's commitment to professionalism and customer-centricity. He emphasized a systematic approach across all aspects of the business, from design to distribution. Gini & Jony is ushering in a new era of excellence through various initiatives within the organization.

Innovation in kids' fashion

Gini & Jony's Spring Summer 2024 collection, showcased at the exclusive preview event in Kolkata's JW Marriott from 5th to 8th September 2023, is a testament to their innovation. The collection combines sustainability with trendsetting style, redefining fashion for children. The brand's "Let Kids Be Kids" ethos takes on new dimensions with a focus on empowering children through thoughtful garment design and functionality.

Solidifying leadership

With a transformative trajectory and the introduction of their latest collection, Gini & Jony is poised to cement its position as the preferred choice for dressing the youngest members of Indian families in both style and comfort. As the brand looks ahead, it continues to evolve while staying true to its core values of quality, style, and affordability.

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08 September 2023, Mumbai

Cantabil Retail India Ltd., a leading apparel manufacturer and retailer, has unveiled its newest store in Rajouri, Jammu & Kashmir. Spanning 1,129 sqft, it stands near Hotel Ashirwad, Old Salani Bridge, Rajouri Poonch, National Highway, Rajouri, Jammu & Kashmir – 185132.

The brand has gained popularity across age groups for its mid-premium fashion. This marks their 14th store in Jammu & Kashmir, part of a nationwide expansion plan.

Solid performance

This store offers a diverse range of formal, casual, and ultra-casual attire for women and kids at competitive prices. Cantabil Retail now boasts 475 stores across India, with plans for more expansion.

Known for its premium, trendy clothing, Cantabil Retail constantly adapts to evolving fashion trends, reflecting the times we live in.

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Shoppers Stop's latest 'Fratini' collection, launched under their growth-focused private brand strategy, debuts with the 'Live Epic' campaign featuring brand ambassador Sanya Malhotra.

This campaign celebrates the confident and stylish Fratini girl, encouraging individuals to embrace life with confidence. Sanya embodies, portraying a modern woman who embraces every aspect of life without compromise.

The Fratini collection offers a wide range of dresses, workwear, and casual outfits in diverse colors and styles, catering to today's fashion-forward women.

08 January 2023, Mumbai

An underlying concept that we have what we need if we use what we already have, is currently pushing global apparel customers towards reusing and renting clothes instead of mindlessly buying them for both economic and sustainability purposes.

With a rapidly growing younger population with a far higher fashion and brand consciousness, many people are now renting designer clothing without actually owning it for important social functions such as weddings, theme parties, corporate parties, and photo shoots.

A post-COVID heightened awareness about wearing sustainable clothing and the fact that sharing and reusing clothes is caring for the environment and minimizing the fast fashion pile-up on dump yards are also primary growth of the rental markets.

Segment expected to touch new heights

A recent survey by US-based Future Market Insights (FMI)– a premier provider of market intelligence and consulting services – has valued the online clothing rental markets at around $2,279.9 million in 2023 which is expected to rise to $6,244.1 million by 2033. The sales of online clothing rentals are expected to grow at a rapid CAGR of 10.6 percent during the forecast period.

Eco-consciousness; Other sustainability efforts besides renting clothes such as using less plastic packaging that takes decades to dissolve and using recyclable, renewable, and production resources more effectively, are contributing to overall market growth.

Affordability

Wearing different brands and styles for a while without being forced to buy and then simply returning them to the rental company at an affordable fee, is an attractive proposal to those who want to stand out on a tight budget.

This niche online rental market has two broad divisions standalone and subscription rentals. The standalone segment grabs the eyeball with a 76 percent stake as they rent out clothes for a one-time specific occasion and is not a regular subscription-based rental website.

As always, the fashion-conscious women segment is monopolizing the market with a 58 percent share during the 10-year forecast period, where Western designer dresses will be hired the most.

India growing with Net penetration among the middle classes

While Germany and the US lead the rental market, the Indian online rental market has also been growing with a valuation of $0.076 billion in 2022 and is expected to reach $0.14 billion by 2030.

This segment is expected to grow at a quick 8.8 percent CAGR between 2023 and 2030, mainly due to increased internet usage and awareness of sustainability and environment-friendly apparel as compared to fast fashion.

Kickers

The aspirational middle classes in small cities with a rising disposable income and increased internet awareness of fashion website has greatly increased demand for renting high-end brands at reasonable prices.

Last year, the global formal clothing segment of suits and coats had a market share of around 31.5 percent as many consumers preferred to rent for special occasions as this is an expensive segment.

High-branded dresses and shirts as well as accessories such as neckwear, belts, shoes, and bags are also popular on rental online platforms as a cost-effective way to wear what you want where it matters.

The rental market in India is showing rapid e-commerce growth of various online websites of many bigger brands as well as smaller start-ups with easy delivery across India.

Quick Message

Smaller businesses prefer opening a clothing rental business rather than creating their brand as it does not offer a more sustainable alternative to fast fashion and attracts a bigger clientele due to its affordability.

However, it is not a cakewalk to success as it is difficult to acquire and retain customers, as many are not comfortable with the hygiene levels and low social acceptance of rental garments as opposed to buying them, so it’s still a long while to the finish line of high profits.

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12 September 2023, Mumbai

Reliance Retail secures Rs 2,069.50 crore investment from KKR

Investment values RRVL at Rs 8.361 lakh crore. RRVL now one of top four companies by equity value.

According to an ET report, Reliance Retail Ventures Limited (RRVL) is poised to secure an infusion of Rs 2,069.50 crore from the global investment firm KKR through one of its affiliates.

This strategic investment has led to the valuation of RRVL at an impressive pre-money equity value of Rs 8.361 lakh crore. As a result, RRVL has now solidified its position as one of the top four companies in the country by equity value, as highlighted in the press release.

It's worth noting that KKR's funding primarily originates from its Asian Fund IV, and the successful completion of this transaction is contingent upon receiving regulatory approvals and adhering to other customary procedures.

Remarks:

• The investment from KKR is a significant vote of confidence in RRVL's business model and growth prospects.
• The valuation of RRVL at Rs 8.361 lakh crore is a major milestone for the company and reflects its strong market position.
• The investment will help RRVL to accelerate its growth plans and expand its footprint across the country.

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06 September 2023, Mumbai

Celio, the esteemed French menswear brand, sparked a fashion revolution in Pune with the debut of its groundbreaking Concept Store on September 1, 2023.

This 2100-square-foot establishment marks Celio's third concept store in India, but it's the first of its kind in Maharashtra. With this launch, Celio now boasts 60 stores in India, solidifying its status as a premier fashion brand in the country.

The Concept Store introduces a new retail concept, offering an extensive collection of clothing and accessories.

Vision

It aligns seamlessly with Celio's vision of providing a one-stop destination for fashion-conscious men seeking quality, style, and convenience. Visitors can explore Celio's Autumn Winter 2023 collection, featuring the latest French fashion trends and officially licensed merchandise from iconic franchises like Dragon Ball Z, Naruto, and TMNT.

In summary, Celio's Concept Store in Pune is a game-changer in the city's fashion scene, offering a diverse selection of clothing and accessories for today's discerning gentlemen.

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