India’s fashion market is experiencing a dramatic transformation, with growth in both the mass-market and premium ends. Alpana Razdan, Country Manager at Falabella and Co-founder of AtticSalt, highlights this dual surge, noting how brands like Zudio are thriving in tier-3 towns while luxury names like Sabyasachi make waves in Mumbai malls.
Fast Fashion: Scaling New Heights
Fast fashion is the standout performer in FY24, growing at a rapid 30–40%-far outpacing the broader industry’s 6% year-on-year growth. The segment, currently valued at around $10–11 billion, is projected to explode to over $50 billion by FY31 as brands like Zudio aggressively expand their reach and store counts.
Zudio, in particular, has doubled its store count in two years and surpassed $1 billion in annual revenue, selling 90 T-shirts every minute and updating its inventory every 15 days to keep pace with trends. Its strategy: ultra-affordable prices, minimal marketing spend, and a relentless focus on India’s rising middle class.
Premium & Ethnic Wear: The Power of Celebration
At the other end, India’s premium and ethnic wear market is booming, fueled by a ₹11 trillion ($130 billion) wedding industry and rising incomes that blur the line between occasion wear and daily indulgence.
The ethnic wear segment is projected to reach $30 billion by 2030, with brands seeing over 7% annual growth. For aspirational shoppers, names like Sabyasachi and Zara cater to a growing demand for luxury, exclusivity, and brand experience. Zara, for example, saw a 40% revenue jump in India, with average order values far higher than mass-market competitors.
Volume vs. Value: The Numbers Tell the Story
| Brand | FY24 Revenue (₹ crore) | Average Order Value (₹) |
|---|---|---|
| Zudio | 7,000 | 500–1,000 |
| Westside | 4,950 | 1,500–2,000 |
| Zara | 2,769 | 4,000–4,500 |
Brands with lower price points and wider reach-like Zudio-are capturing the largest share of the market, while premium brands maintain high margins and brand loyalty.
What’s Fueling This Momentum?
- Digital adoption in tier-2 and tier-3 cities is expanding access and driving demand for affordable, trendy fashion.
- The wedding industry continues to be a massive driver for ethnic and occasion wear.
- Over 800 D2C brands, valued at $80B+, are moving offline, increasing their visibility and reach in multi-brand outlets.
A Mindset Shift in Indian Fashion
For Indian consumers, fashion is more than utility-it’s about identity, celebration, and pride. The market’s K-shaped growth reflects both mass-market scalability and rising discretionary spending. As Razdan observes, “If you get a good thing at a low price, its value increases. The Indian consumer understands very well the value of money and the value of brands”.
As both fast fashion and premium segments thrive, India’s fashion story is being written at both the mandap and the mandi-where price meets pride, and variety is king.
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