On the back of increased awareness across channels, higher repeat purchases and new store openings, brands are reporting an uptick in demand
Driven by personalisation, quality and affordability, the fashion segment is witnessing an increased level of demand as Indian consumers now seek more versatility, trend-first fashion and faster product refreshes. On the back of the new store openings, higher repeat purchases and increased awareness across digital and offline channels, the major brands have seen nearly a two times surge in revenues in the fourth quarter of fiscal year 2025 (Q4FY25).
With increasing disposable income, the segment has been marching on the growth trajectory as high-performance categories include streetwear, overshirts and relaxed fits, aligning with the growing demand for comfort-driven fashion.
With brands reporting over 40 per cent repeat rates in Q4 compared to the corresponding period of the previous fiscal, customers are not just looking for occasion wear anymore, as there is a rising demand for versatile, everyday ethnic pieces that are stylish yet comfortable, especially in the ethnic wear categories.
Surge In Revenues
While Sustainability remains aspirational, trend adoption is leading the way, especially among Generation Z (Gen Z) and millennials. Brands reported a visible shift towards daily-wear premium fashion with global streetwear influences. Focus towards an improvement on the digital front also played a crucial role in growth.
“We project continued strong momentum, ending Q4 with a two times increase in revenue compared to FY24. Growth will be fuelled by deeper offline expansion, improved repeat rates and consistent digital scale-up,” highlighted Chetan Siyal, Chief Marketing Officer (CMO) of Snitch.
Athleisure and core essentials also saw strong momentum, contributing to a two times increase in monthly active users and over 40 per cent monthly repeat rates compared to last year, Siyal added, while noting that personalisation, authenticity and affordability continue to be major decision drivers.
Men’s casualwear remained one of the top-performing segments, led by high-velocity stock keeping units (SKUs) such as denim, shirts and casual trousers. Demand was especially strong in tier two and three markets, driven by young male consumers. Emerging as a strong growth segment, kidswear gained traction primarily in value retail formats, the players reported.
Focus On Omnichannel Presence
Driven by the need to create an immersive shopping experience for customers, the players in the segment are betting big on having an all-around presence on multiple channels, including offline retail, website and ecommerce. As value retail chains expand deeper into the non-metros, consumers are showing a clear preference for organised, trustworthy formats over traditional, unorganised stores.
“Our omnichannel strategy has delivered exceptional results. Shobitam Annual Recurring Revenue (ARR) has crossed Rs 47 crore in the latest quarter. The recent expansion into retail with our flagship store has seen exceptional traction, and we are now on track to open our second store in Bengaluru,” stated Aparna Thyagarajan, Co-founder and Chief Product Officer (CPO) of Shobitam, a direct-to-consumer (D2C) brand in the ethnic fashion space.
Along with scaling its omnichannel presence with the upcoming opening of its second experience store in Bengaluru, Thyagarajan remarked that the brand is also deepening customer engagement and exploring new high-potential categories.
Value Conscious Yet Aspirational
With Indian consumers being more informed, aspirational and digitally savvy than ever before, they are driven by affordability without compromising on style or quality. The demand for garments that combine good design and durable fabric is on the rise.
“Today’s Indian consumer, especially from the tier two, three and four towns, is driven by affordability without compromising on style or quality. They are looking for garments that combine good design, durable fabric and trend-forward aesthetics at reasonable prices,” highlighted Abhishek Dua, Co-founder and Chief Executive Officer (CEO), Showroom B2B, a business-to-business fashion marketplace.
The brands reported consumers preferring market players that offer bold styles, consistent newness as well as high convenience in the form of seamless app experiences. With there being a shift towards organised retail channels, this is fuelling demand for more structured and tech-enabled supply chains, along with higher expectations for consistency, fit and finish.
Growth Projections Going Ahead
Led by new product introductions to keep up with the demand for trend-first fashion, the fashion industry is eyeing building on the momentum gained in the recent period. From expanding the offline presence to registering a significant surge in revenues, the future outlook for this space looks promising.
“With over 50 stores operational and a robust D2C engine, we are targeting over 80 stores and Rs 1,000 crore ARR in the next 18 to 24 months. Our strategy focuses on agility, rapid trend adoption and building a seamless phygital experience,” Snitch’s Siyal added.
With positive trends and an expanding product portfolio, “we are projecting a two-fold growth in revenue this year,” Shobitam’s Thyagarajan pointed out. Riding on the momentum of new store openings, growing repeat purchases and heightened visibility across multiple channels, brands that can seamlessly blend adaptability with style will be well-positioned to carry on the growth momentum, going ahead.
