Amid major global crisis in the luxury fashion markets, The Business of Fashion (BoF) and McKinsey & Company has revealed that the Indian Fashion Industry is set to become a global powerhouse.
The report states the rapidly increasing middle-class population of the country is one of the most significant factors driving this positive change for fashion markets. With a higher range of youth-based population and rapid economic growth, the country is experiencing a fashion boom.
The McKinsey & Company report highlights India’s potential to become the world’s third-largest consumer market by 2027. This surge is fueled by several factors like ‘expanding middle class’, ‘youthful demographics’ and ‘digital surge’.
The growing middle class impacts the growing amount of disposable income. The significant portion of the population increase under the age of 35 in India has impacted in having a young and trend-conscious consumer base. In addition to this, the increasing use of digital spaces has driven e-commerce industry to major reshaping consumer behavior.
The Indian Fashion industries are also witnessing an increasing preference towards homegrown labels, particularly in traditional wear. However, international luxury brands continue to dominate the high-end market.
E-commerce brands continue to connect the Indian customer base to the global brands worldwide.
While challenges such as limited retail real estate, complex regional nuances, and high import taxes persist, India’s fashion industry offers immense opportunities for both domestic and international brands. By adapting to the unique dynamics of the Indian market, brands can tap into the country’s vast potential and achieve significant growth.
