The Indian fast-fashion industry has thus been in rapid ascent, essentially driven by millennials and Gen Z, toward a projected mammoth market size of $50 billion by FY31, a recent report indicated. This sector, valued today at $10 billion, has thus grown by 30-40% in FY24, in complete contrast to the broad fashion market of India, which has clocked a year-on-year growth of just 6%.
Value for money combined with effortless access to the latest trends is a powerful combination that fast fashion in India possesses, changing consumer experiences. While there have been overall economic challenges, fast fashion has proved to be one of the resilient segments within the overall Indian retail landscape, says Kushal Bhatnagar, Associate Partner at Redseer.
Yet, although large, this market remains relatively small compared to global giants like Shein, which is thrice the size of Indian players. The segmentation of the market into price levels is such that it requires specific business strategies: ultra-value, mid-value, and premium.
While the mid-value segment is bound to see the largest influx of brands in the near future, it will leverage flexible entry points and shifting consumer preferences as powerful drivers of market growth, a study mentioned. Those firms that can create unique value-added positions are likely to share strong resonance with discerning Indian consumers, a report mentioned.
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