New Delhi: India‘s fast fashion sector is on a rapid growth trajectory, with an annual growth rate of 30-40 per cent, significantly outpacing the overall fashion industry’s modest 6 per cent year-on-year (YoY) growth in the fiscal year 2023-24. Despite this impressive growth, fast fashion currently represents only about 10 per cent of India’s $90 billion fashion market.
However, as per a report by Redseer Strategy Consultants, this share could expand to 25 per cent by 2030, potentially turning fast fashion into a $50 billion industry.
Kushal Bhatnagar, Associate Partner at Redseer Strategy Consultants, said that fast fashion is acting as a catalyst to encourage fashion consumption at a time when traditional fashion is struggling to grow.
A significant factor in this potential growth is the anticipated return of global fast fashion giant Shein, in collaboration with Reliance Retail. Shein, which generated an estimated $22.7 billion in revenue in 2022, is expected to boost market activity and intensify competition in the ultra-value segment.
Sharing his views on the competition and growth drivers for brands, Bhatnagar said, “As multiple conglomerate-backed players competing to gain a higher wallet share among their target GenZ & young millennial customers, success will hinge on timely trend identification, rapid prototyping, a nimble supply chain, competitive pricing, and effective customer engagement.”
He further said that brands must “sell a compelling story” to attract and engage their target customers, particularly in the mid-value segment.
Fast fashion brands are also focusing on sustainability by producing limited quantities to capture short-lived trends, reducing waste, and launching eco-friendly product lines. However, achieving meaningful sustainability will require more comprehensive changes across the industry, Bhatnagar explained.
As the sector continues to evolve, key trends in men’s and women’s fashion for FY24, including oversized T-shirts, co-ords, and shapewear, are expected to shape the market’s future direction, a Redseer’s report said. With these strategies and a growing consumer base, India’s fast fashion market is poised to become a major player in the global fashion industry.
