Steep growth to lift online fashion to $35 billion by 2028
The digital fashion sector is on a rapid growth track and is projected to represent a 29% share of India's fashion market by 2028. That is according to a Bain & Company report that analyzes India’s digital fashion landscape.
India’s fashion and lifestyle market, the second largest consumer category in the country, is valued at $110 billion, with online sales accounting for approximately 10% or $11 billion. The online fashion segment is expected to grow to around $35 billion by 2028.
Digital brands in India’s online fashion market are expected to grow at a rate of 35% annually, reaching $10 billion by 2028, a substantial increase from the current size of $2.4 billion. This growth is projected to enable them to capture approximately 29% of the overall fashion market, as outlined by report.
The report also highlights that by 2028, around 50 ‘digital disruptor brands’ are expected to scale beyond $30 million in revenue. Funding and investments in the Indian fashion sector are expected to increase as more brands demonstrate a realistic path to profitability and scaled growth.
Digital disruptors are driven by younger consumers in fragmented categories, with Gen Z and millennials, who are expected to make up 75% of spending on disruptors by 2028, up from approximately 70% today.
Leading disruptor brands have not only revolutionized their operations and marketing strategies but have also expanded their influence over consumers’ spending habits through their product offerings and tailored campaigns of building engagement.
To be successful in the marketplace, brands will need to prioritize a low threshold scale for profitability, address inefficiencies, adapt to unplanned challenges, and avoid building excessive infrastructure.
Bain & Company’s report suggests that previously fragmented subcategories within the industry, including ethnic wear and kids wear, are currently experiencing substantial transformations due to the rise and expansion of digitally-driven brands. These subcategories are poised for exceptional growth over the next five years.
