Fashion sector to dominate, with beauty and personal care also set for significant expansion
The Indian lifestyle market is projected to grow at a compound annual growth rate (CAGR) of 10-12 per cent over the next five years, reaching USD 210 billion by 2028, according to a joint report by Bain & Company and Myntra. The organised segment will play a crucial role in this expansion, with the fashion sector accounting for nearly 80 per cent of the market, while beauty and personal care (BPC) are also expected to see a 10-12 per cent CAGR.
The report forecasts that India’s e-lifestyle market will expand from USD 16-17 billion in 2023 to USD 40-45 billion by 2028. This growth will be driven by easing short-term inflationary pressures and structural demand shifts, such as rising incomes, the emergence of a fashion-conscious, digital-native Gen-Z shopper base and increased demand for organised and branded products.
Additionally, the growth will be fuelled by superior customer value propositions, including trendy selections, faster delivery, easier returns, tech-enabled purchase journeys, social media-driven discovery, and omni-channel access. These factors will help close the penetration gap with global markets like the US, China and Germany, where e-lifestyle penetration exceeds 35 per cent. In India, lifestyle penetration is expected to rise from 13 per cent to 18-22 per cent between 2023 and 2028.
Currently, the Indian e-lifestyle market is dominated by fashion, which comprises 75 per cent of the market. Accessories and women’s apparel are expected to grow faster than other fashion segments. The BPC segment, which had a 16 per cent penetration in 2023, is also projected to grow slightly faster over the next five years.
The report highlights the rise of the trend-first fashion market in India, driven by online platforms offering a large assortment and faster refresh cycles. This market is expected to grow eightfold, reaching USD 4-5 billion by 2028, with the online share of trend-first fashion increasing from the current 30-35 per cent to 50-55 per cent.
In 2023, over 175 million customers in India shopped for lifestyle products online, with an average of 6-7 transactions per year. Lifestyle products have become a key gateway category for first-time ecommerce shoppers, accounting for 40-45 per cent of their initial purchases. These online shoppers are visiting more platforms and doing so more frequently.
India remains a core market for leading global brands, with 90 per cent of the top 50 global brands already present in the country. Half of these brands generate over USD 30 million in revenue from their Indian operations. The confidence in India as a key lifestyle market is further underscored by the launch or planned launch of over 60 global brands in the past 12 months, spanning scale, niche, luxury and new-age brands across fashion and beauty. (ANI)
