India’s fast fashion industry has a potential to become a $50-billion market by financial year 2031, a report by Redseer Strategy Consultants showed. Driven by millennials and Gen Z, the fast fashion sector in the country is outpacing the broader fashion market with its unique ability to offer trendy, affordable styles at a rapid pace.
In FY24, the fast fashion industry recorded a growth rate of 30-40%, significantly outperforming the broader Indian fashion sector’s growth of just 6%. This surge highlights the robust demand for fast fashion’s frequent collection updates, which far exceed the traditional fashion model of 2-3 collections a year. Although the current market size stands at $10 billion, it pales in comparison to global leaders like Shein, which is more than three times its size.
The study divides fast fashion brands into three segments based on their pricing: ultra-value, mid-value, and premium. Among these, the mid-value segment is poised for the most significant expansion. This growth is attributed to low entry barriers and a consumer base that is eager to experiment with new styles. Brands that can distinguish themselves with unique and valuable offerings are likely to capture a significant market share.
For men, popular fast fashion items include oversized t-shirts, graphic tees, and cargo pants, with a growing interest in coordinated outfits and multi-season jackets. Women’s trends are currently dominated by dresses and wide-legged trousers, with future trends likely to include more occasional wear and shapewear.
Kushal Bhatnagar, associate partner at Redseer Strategy Consultants, said: “Despite a year of sluggish consumption, fast fashion stood out as one of the few thriving sectors in India’s retail market.”
Brands succeed by quickly identifying trends, efficiently prototyping and producing new styles, and maintaining a nimble supply chain. They also engage consumers effectively, often creating viral trends through strategic pricing and marketing.
