15 November, New Delhi (IANS). India’s fashion industry is going to grow rapidly in the coming times despite global economic challenges. This boom in the country’s fashion industry will be fueled by the growing middle class and increasing preference for domestic brands. According to a latest report, the development of fashion industry will play an important role in the economic expansion of the country.
According to a recent report by The Business of Fashion and McKinsey & Company, India’s economy is projected to grow by seven percent year-on-year, ahead of all other major economies. This will make India the world’s third largest consumer market by 2027, which will present a huge opportunity for domestic and international fashion brands.
The McKinsey Fashion Growth Forecast 2025 report shows that retail sales of luxury brands in India are expected to grow by 15 to 20 percent year-on-year in 2025, compared to 3-5 percent in the US and 1 to 3 percent in Europe. . At the same time, retail sales of non-luxury brands are expected to increase by 12 to 17 percent on an annual basis, which may increase only by 3-4 percent in America and 2 to 4 percent in Europe.
According to the information given in the report, the growing preference for domestic brands among Indian consumers is a major factor in the fashion industry. More than 50 percent now prefer domestic brands, marking a 35 percent increase from 2011. This preference remains particularly strong in the non-luxury segment, where local brands specializing in traditional apparel have a strong foothold.
At the same time, international brands still maintain their dominance in the luxury segment. Brands like Mango, Decathlon and Bulgari are expanding their presence in India. The report said India’s middle class is estimated to reach 1 billion by 2050, reflecting a large consumer base with rising disposable income. Additionally, a young and trend-conscious consumer base in India will also be key to this growth. 66 percent of the population under the age of 35 is eager to adopt new styles and brands.
Similarly, increasing internet penetration is accelerating fashion trends and promoting e-commerce. This is giving brands new ways to connect with consumers, which is considered positive for the development of the fashion industry.
According to the report, “High apparel import taxes, complex regional nuances and ensuring smooth and efficient delivery to customers will remain challenges to the growth of the fashion industry.”
–IANS
SKT/CBT
