The report notes that India’s branded apparel market is fast becoming mainstream, and over 50 per cent of apparel spend will be brand-led by 2030
As consumers across segments are actively seeking new propositions, wardrobes are expanding across occasions, and pricing and trend-orientation are emerging as key decision drivers, a report has projected that India’s apparel market is expected to hit USD 130 to 150 billion by 2030, growing at 10 to 12 per cent compounded annual growth rate (CAGR).
The report by Redseer Strategy Consultants revealed that branded apparel will account for the majority of spend by then, and grow at over two times the pace of unbranded. The report noted that India is now firmly on the radar for both local and global apparel players, with local brands like Zudio and global brands like Uniqlo and H&M having recently found success in the Indian apparel market.
“India’s branded apparel market is fast becoming mainstream, and over 50 per cent of apparel spend will be brand-led by 2030. We see the biggest opportunity for global brands in the masstige or premium price bands, where aspirational consumers are increasingly prioritising style, quality, and perceived value,” it noted.
Highlighting that there’s no one-size-fits-all model for entering India, the report added that the optimal entry route depends on how one balances speed against control and Capital intensity versus operational risk. It added that global brands are now scaling faster, with several having crossed the USD 50 million revenue mark in just two to three years.
Citing examples of brands excelling on various fronts, the report added that homegrown Zudio scaled from 40 to over 500 stores in five years by offering trendy, affordable fashion with strong mass appeal. International giant H&M cracked early adoption by targeting aspirational consumers seeking style and value, delivering over 22 per cent revenue CAGR (fiscal year 2019 to FY24).
On a broader scale, the report emphasised that there are structural trends that will redefine the market in both the short and long-term, and brands that capitalise on shifting consumer preferences have the opportunity to make significant inroads in emerging market niches.
