Indian fast fashion industry poised to reach over $50 bn by FY31: Redseer

In FY24 alone, the fast fashion sector saw a remarkable growth rate of 30-40%

The Indian fast fashion industry is projected to burgeon into a massive $50 billion market by FY31, indicating a promising future, according to a report by Redseer Strategy Consultants.

Fast fashion has democratised the fashion industry. For Millennials and Gen Z (the driving force for this industry), fast fashion has provided affordability combined with constant access to trendy styles, making it a game-changing experience.

In FY24, the fast fashion sector surged ahead with a 30-40 per cent growth rate. In contrast, the broader fashion sector in India saw a modest 6 per cent year-on-year growth. This performance underscores the robust demand and increasing consumer inclination towards affordable and trendy clothing options.

 

"Despite a year of sluggish consumption, fast fashion stood out as one of the few thriving sectors in India’s retail market,” said Kushal Bhatnagar, associate partner, Redseer Strategy Consultants. “Brands excel by timely identifying trends, rapidly prototyping and producing, nimble supply chain, offering attractive pricing, and driving virality via effective engagement of consumers.”

He added, “As the fast fashion sector continues to evolve, staying ahead of trends remains paramount. The time to build a fast fashion brand in India is now.”

The Redseer report said that fast fashion brands, renowned for their agility, can introduce over 50 collections annually, eclipsing the traditional fashion model of 2-3 collections per year. Currently valued at $10 billion, India's fast fashion market, while substantial, remains comparably smaller than global giants like Shein, which is over 3x larger.

Fast fashion brands can be classified into three segments based on price point. These include ultra-value, mid-value, and premium. Each segment requires distinct business model strengths.

The mid-value brands segment is expected to see the maximum proliferation of brands, leveraging low entry barriers and experimental consumer behaviour to drive growth. Further, brands with unique and value-adding positioning are expected to appeal strongly to customers.

In men’s fast fashion, popular styles include oversized t-shirts, graphic tees, and cargo pants, with upcoming focuses on co-ords and summer and all-season jackets. Popular items for women encompass dresses, wide-legged trousers, and co-ords, with upcoming trends in occasional wear and shapewear.