India is increasingly becoming a retail magnet for leading fashion brands across the world. According to McKinsey Fashionscope, more than 300 international brands are expected to open stores in the next two years.
Factors like rapidly growing middle-class, increasingly powerful manufacturing sector and strong economic fundamentals have made the country too important for international brands to ignore.
“Economic expansion is happening across Asia, but we expect that 2019 will be the year in which India will take centre stage,” said McKinsey’s report titled ‘The State of Fashion 2019’.
India is predicted to grow at 8 per cent a year between 2018 and 2022. Also, the Indian middle class is forecast to expand at 19.4 per cent a year, outpacing countries like China, Mexico and Brazil.
“As a result, India is set to move from being an increasingly important sourcing hub to being one of the most attractive consumer markets outside the Western world,” maintained the report.
India’s apparel market will be worth US $ 59.3 billion (about Rs.4.12 lakh crore) in 2022, making it the sixth-largest in the world and comparable to Britain with US $ 65 billion (Rs.4.51 lakh crore) and Germany US $ 63.1 billion (Rs.4.38 lakh crore), said the data from McKinsey’s FashionScope city-level growth forecasting tool. Also, the aggregate income of the addressable population is expected to triple between now and 2025.
Given these dynamics, it is little surprise that more than 300 international fashion brands are expected to open stores in India in the next two years.
“Despite structural challenges that include inequality, infrastructure and market fragmentation, we expect strong economic growth, scale and rising tech-savviness will combine to make it the next big global opportunity in fashion and apparel,” it said.