In 2024, fast fashion has emerged as a prominent player in the Indian retail market, according to data from Redseer Strategy Consultants. While the overall fashion sector in India saw a modest year-on-year growth of about 6 percent in FY24, fast fashion advanced at an impressive pace of 30 to 40 percent.
In 2024, fast fashion is set to outperform in the Indian retail market with a growth of 30-40 per cent, according to Redseer Strategy Consultants. Despite a market size of $10 billion, it is projected to reach $50 billion by fiscal 2031. Key drivers of fast fashion growth in India include supply chain agility for ultra-value brands and brand loyalty for premium brands.
However, this rapid growth is just the beginning for fast fashion in India. Despite its current market size of around $10 billion, it is still more than three times smaller than Shein, one of the largest fast fashion brands in the world. Driven by the huge growth potential, fast fashion in India is projected to become a massive opportunity worth over $50 billion by fiscal year 2031.
For ultra-value brands like Zudio, supply chain agility is crucial. These brands can launch low-priced products profitably by operating at scale, which helps offset certain costs. Consequently, building a scalable brand in this segment will require substantial investments, likely spearheaded by larger conglomerates, according to Redseer.
For luxury brands like Zara, brand recall and customer loyalty are their strong points. As India’s trend towards premiumisation gains traction among affluent consumers, this segment is expected to attract a healthy influx of both international and Indian designer brands.
The mid-value segment, which includes brands such as H&M and Snitch, is experiencing a huge proliferation of digital-first brands. With few barriers to entry, this segment attracts experiential customers, making it highly competitive. Brands with unique, value-added propositions are likely to find strong acceptance among consumers.
Regardless of their segment, fast fashion brands in India share one common driving factor: the ability to identify and capitalize on new and viral fashion trends.
In men’s fast fashion for FY2024, trends included oversized T-shirts, graphic tees, printed shirts, trousers, and cargo pants. The next big trend is expected to be summer or all-weather co-ords and jackets. In women’s fast fashion, dresses, wide-leg pants, and co-ords dominated the shopping choices. The next big disruptors in this category are anticipated to be casual wear and shapewear.
Fibre2Fashion (DP) Press Desk
