Indian Economy News

Indian fast fashion industry poised to reach over US$ 50 bn by FY31: Redseer

The Indian fast fashion industry is projected to multiply into a massive US$ 50 billion market by FY31, indicating a promising future, according to a report by Redseer Strategy Consultants. Fast fashion has democratised the fashion industry. For Millennials and Gen Z (the driving force for this industry), fast fashion has provided affordability combined with constant access to trendy styles, making it a game-changing experience. In FY24, the fast fashion sector surged ahead with a 30-40% growth rate. In contrast, the broader fashion sector in India saw a modest 6% YoY growth. This performance underscores the robust demand and increasing consumer inclination towards affordable and trendy clothing options.

Mr. Kushal Bhatnagar, associate partner, Redseer Strategy Consultants, said that, despite a year of sluggish consumption, fast fashion stood out as one of the few thriving sectors in India’s retail market. Brands excel by timely identifying trends, rapidly prototyping and producing, nimble supply chain, offering attractive pricing, and driving virality via effective engagement of consumers. He added, as the fast fashion sector continues to evolve, staying ahead of trends remains paramount and the time to build a fast fashion brand in India is now. The Redseer report said that fast fashion brands, renowned for their agility, can introduce over 50 collections annually, eclipsing the traditional fashion model of 2-3 collections per year. Currently valued at US$ 10 billion, India's fast fashion market, while substantial, remains comparably smaller than global giants like Shein, which is over 3x larger. The mid-value brands segment is expected to see the maximum increase of brands, leveraging low entry barriers and experimental consumer behaviour to drive growth. Further, brands with unique and value-adding positioning are expected to appeal strongly to customers.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.