People in India are spending a lot on fashion over the past few years. As per Technopark, it has been stated that India spent ?5408bn on shopping clothes in 2018. This initiated our thoughts to find out the reason for this high level of spending are we are sharing our findings. Download the Indian Fashion Industry Analysis Infographic here.
The increases spend in fashion is mainly due to three main factors:
- Higher disposable income – With better education, higher employment rates and larger income scale, people today have more purchasing power than before.
- Infrastructure - With cities and towns growing bigger and larger, the infrastructure in the country has also been witnessing better growth.
- Opening of brands in non-metro cities - Most fashion brands are tapping into semi urban pockets as well, to widen their customer base.
Of the total apparel sales, men’s wear accounted to 41%, women’s clothing 38% and kids 21%. Surprisingly kids wear is the fastest growing segment.
There is a strong expected growth in the economy and a rise in the levels of tech-savviness. These coupled together can make India the next big global opportunity in fashion and apparel industry.
In short, the Indian market holds great promise.
We expect to see the below in near future.
- By 2022, 690mn people are expected to be online on smart devices, attributing to elevated exposure to e-commerce portals.
- 300+ international fashion brands are expected to open stores in India in the next two years. Zara and H&M have already crossed a turnover of INR1,000 crores in India.
- Craving for Western styles are likely to increase, though traditional wear is still expected to account for 65 percent of the market share by 2023
- Significant growth in luxury spending in Delhi, Mumbai and Bangalore. Kolkata, Chennai, Pune and Hyderabad have emerged as new centres of luxury consumption
To read further, check out our full report here.
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