India’s online fashion and lifestyle market is poised for remarkable growth, expected to soar from $16-17 billion to $40-45 billion by 2028, as per Bain & Company and Myntra’s report. The industry, valued at $130 billion in 2023, is set to reach $210 billion by 2028, with expected e-commerce penetration of 18-22%. Factors like Gen-Z shopper influence, technological advancements, and social media's rising role are driving this evolution, emphasizing the need for collaborative efforts for continued success.
The future of India's online fashion and lifestyle market looks exceptionally promising, with estimates indicating a surge from $16-17 billion to $40-45 billion by 2028, as revealed in a comprehensive report by Bain & Company and Myntra titled “Decoding India’s Online Fashion and Lifestyle Shopping Trends.”
The report not only sheds light on the current landscape but also forecasts a significant transformation in the overall lifestyle market in India, which was valued at $130 billion in 2023. Anticipated to grow at a CAGR of 10-12%, this market is projected to reach $210 billion by 2028. E-commerce in the lifestyle sector is set to see a substantial rise from the present 13% to 18-22% by 2028, painting a picture where one in every five dollars spent on lifestyle will be through online platforms.
Presently, more than 175 million Indians engage in online shopping for lifestyle products, averaging 6-7 transactions annually. Notably, Gen-Z shoppers, a group of around 60 million individuals, are spearheading this growth with a higher frequency of 8-9 purchases per year, compared to 5-6 transactions made by non-Gen-Z shoppers.
Fashion dominates the e-lifestyle market with a commanding 75-80% share, closely followed by beauty and personal care products. The segment focusing on trend-first online shopping is expected to witness a substantial leap from $0.5 billion to $4-5 billion by 2028, with online penetration climbing from 30-35% to 50-55%.
The report underscores that 90% of the top 50 global lifestyle brands are active in India, with half of them raking in revenues exceeding $30 million. Various factors are propelling this growth trajectory, including alleviation of inflationary pressures, escalating incomes, the burgeoning population of fashion-savvy Gen-Z shoppers, and a shift towards organized retail. Moreover, technological advancements like AI-driven personalization, virtual try-ons, and voice-assisted shopping are bolstering the online shopping experience.
Commenting on India's evolving apparel sourcing landscape, Manan Bhasin, a Partner at Bain & Company, remarked, “India’s apparel sourcing landscape has matured significantly, with emerging manufacturing clusters across the country. The share of India sourcing has risen to 20-30% for leading global brands, indicating a positive trend. Greater textile manufacturing capabilities, stronger brand-supplier relationships, and enhanced technology enablement are all contributing to the evolution of India’s apparel manufacturing ecosystem.”
The report also underscores the escalating role of social media in driving product discovery and purchases, with social platforms accounting for 20% of the incremental traffic for the top 30 Direct-to-Consumer (D2C) brands over the last two years.
For global brands venturing into the Indian market, the report delineates a winning strategy that involves offering a unique customer proposition, efficient sourcing, strategic marketing, and leveraging partnerships for tailored growth in India.
As India’s e-lifestyle market continues its dynamic evolution, collaboration between brands and platforms is deemed critical to delivering the most compelling offerings to Indian consumers, leveraging the nation's digital revolution and evolving consumer preferences for mutual success.
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