Dynamics of Fashion retail market in India

India is gradually becoming a central point for the fashion industry, considering a progressively growing middle class and a powerful manufacturing industry. These factors, along with increasing technology influence, make India a significant place for international brands. According to data from McKinsey’s Fashion Scope, in the year 2022 India’s apparel market will be worth $59.3 billion, making it the sixth-largest in the world, in comparison with United Kingdom’s ($65 billion) and Germany’s ($63.1 billion). More than 300 international fashion brands are anticipated to open stores in India in the next two years. Let’s take a look at some of the trending factors responsible for blooming Indian apparel fashion industry

  • India’s middle class is predicted to enlarge by 1.4 percent a year, beating China, Mexico, and Brazil. As a result, India is determined to develop from a sourcing station to an attractive consumer market outside the Western market.
  • Higher disposable incomes, access to international events, fashion idols and increasing confidence levels are leading the changes in consumer buying behavior. Consumers are shifting from need-based purchasing to aspiration and personality-based purchasing.
  • Retailers are now aware of the consumption potential in the appearing sub-urban markets of Tier II and Tier III cities.
  • Eco-friendliness will soon be a performance factor for retail organizations. This year most of the fashion retailers, India’s textiles and apparel suppliers have met the environmental standards of Western markets.
  • Easygoing regulations on foreign direct investment will give rise to more foreign-sourced activities. The government’s decision to allow Foreign Direct Investment (FDI) in multi-brand retail is considered one of the most radical and reform-oriented decisions taken in recent times.
  • People now have better access to fashion products via internet. They compare products, prices, brand offerings, service levels, and reviews before making any buying decision.
  • Conventional stores and other retailers are leveraging technology to upgrade the in-store experience. For example, Madura Fashion & Lifestyle applies augmented reality for outfit presentation on customers. Major players in E-commerce are creating solutions based on artificial intelligence. Ananth Narayanan, chief executive of Myntra says “Personalization and curation based on personal taste will become a lot more important. It’s not about having the largest selection; it’s about presenting the most appropriate selection to the customer involved.”

India is, however, a complicated market with challenges as well as() potential opportunities. International players looking forward to entering the Indian market should analyze some of the native challenges.

  • The apparel market is greatly unorganized. Formal retail market share is likely to reach around 45% by 2025—which is comparatively low share.
  • India is an amalgam of climates and tastes. Brands should understand what color Indians prefer, what kind of designs work, what are the touchpoints and personalization that might work.
  • Indians still keep their traditional sensibilities alive. An Indo western sensibility can be observed throughout the bandwidth.
  • Poor infrastructure makes deliveries difficult. Besides, the retail stock is often below expectations.
  • Heterogeneity is a primary characteristic of the Indian market. It requires a holistic understanding of consumer preferences and buying pattern across the country


The Indian fashion retail apparel industry comprises a spectrum of opportunities. Fashion retail players need to realign and restructure their models to cater to the evolving demands of this dynamic market. They need to conceive the future and redevelop themselves so as to tackle the challenges.


Test name February 19, 2016 Reply

There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised words which don't look even slightly believable. If you are going to use a passage of Lorem Ipsum, you need to be sure there isn't anything embarrassing hidden in the middle of text.

Test company February 19, 2016

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.

Test name February 19, 2016Reply

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.

Leave a Comment