A new report by Redseer Strategy Consultants reveals a significant shift in India’s fashion market, emphasising the rise of digital-first brands. The report, titled Future of Fashion in India: New-Age vs Legacy, highlights how new-age brands are outpacing traditional ones in growth. During the festive season (15th September to 31st October), India’s fashion sector grew by 12 per cent year-on-year, with a gross merchandise value (GMV) of US $ 14 billion.
The report points to a slowdown in FY 2023-24, as traditional brands struggle to maintain growth amid macroeconomic challenges and structural industry shifts. In contrast, Direct-to-Consumer (D2C) brands, which cater to younger consumers with trend-forward designs and personalised experiences, are thriving. These brands are expected to see a growth rate of 25-30 per cent in FY 2023-24, while legacy brands are projected to grow by only 0-3 per cent.
The festive season saw impressive growth, especially in Tier-2+ cities, where ethnic wear, jewellery, and accessories saw a surge in demand. Smaller cities are playing an increasingly important role in market growth, with a 13 per cent rise in spending during the season.
For legacy brands to compete, the report suggests they must embrace digital transformation, focus on sustainability, and cater to evolving consumer preferences.
