India’s Fashion Market to Hit $210 Billion by 2028
The fashion industry is set for a substantial growth driven by a 10-12% annual increase.
India's fashion sector is set for substantial growth, with the lifestyle market—including apparel, beauty, accessories, and footwear—projected to reach $210 billion by 2028, up from $130 billion.
This growth, driven by a 10-12% annual increase, represents an additional $80 billion in spending.
Gen Z as a Key Growth Driver
India’s Gen Z, born between 1997 and 2012, is fueling this expansion. This 60-million-strong demographic frequently buys fashion items, averaging eight to nine purchases annually compared to the national average of five to six.
Global brands and local retailers are both growing, as they currently represent 20-25% of the $4 billion online lifestyle market.
Nandita Sinha, the CEO of Myntra, observes that the fashion industry is being transformed by Gen Z's keen sense of trends and their regular shopping behaviors. e-commerce platforms.
Surge in Online Shopping
India’s online lifestyle market, valued at $16-17 billion, is expected to grow to $40-45 billion by 2028. Fashion dominates this segment with a 75% share, and accessories and women’s apparel are projected to grow the fastest. In 2023, 175 million Indians shopped online for lifestyle products, with this category being key for many first-time e-commerce users.
Growth in Organised Retail
The shift from unorganised to organised retail will further drive growth. The organised segment, which is expanding at 15-20% annually, is poised to capture a larger market share. Global brands and local retailers are both growing, as are e-commerce platforms.
Shyam Unnikrishnan of Bain & Company highlights that the $80 billion in incremental sales will be driven by rising affluence, premiumisation, and the transition to organised retail.
Regional Expansion
Growth is extending beyond major cities, with areas outside the top 50 already contributing two-thirds of lifestyle consumption. This expansion is supported by easing inflation, rising incomes, and increased demand for branded and organised retail.