Fashion industry in India is a competitive and vibrant sector that has emerged as one of the fastest-growing industries in the global market. It has diverse and innovative trends along with a progressive shift towards sustainable practices. 

The industry today is merged with traditional and modern flavors, and it is recognized internationally due to its strong and powerful background. In this blog, we will discuss the current size of fashion industry of India, the current trends, the current problems, and the current possibilities for this industry.

The Emerging Trends in the Fashion Industry of India

Thus, recent studies show the increase in the fashion market growth in India at a CAGR of 11-12%, with $115-125 billion by 2025. Such progression is driven by several factors such as; rising disposable income, rising population density, and young and fashionable demography. Besides, the COVID-19 pandemic has accelerated the trends related to the increased role of e-commerce, which act as new opportunities.

Trends Affecting the Field

Sustainability

In Indian fashion industry, sustainability is one of the trends that is now holding considerable importance. Green consciousness which can be described as social and environmental consciousness is slowly but surely gaining ground in consumers and leading brands as well. 

There is a new focus on sustainability and the use of organic and recycled materials; the minimization of waste; efforts to reduce Indian fashion’s environmental impact; and fair treatment of workers. This shift is facilitated by the customer who is care conscious about the environment and is willing to associate with environmentally conscious brands.

Digitalization

It hardly comes as a surprise that the COVID-19 pandemic has enhanced the advancement of the fashion business towards digitization. A number Indian fashion firms have established strong internet-sell propositions by adopting e-tail sites and social media for promotion and direct consumer relations. 

Nowadays, features like ‘try before you buy,’ augmented reality, and artificial intelligence pervade the laying of products all over the world. This digitalization trend seems to be on the rise, owing to brands focusing on utilizing online tools to further improve the customer journey and expand the audience.

Inclusivity

Another increasing trend in the fashion industry in India is diversity. Different brands now incorporate new diversities in their design and ad campaigners as well as in their communication. 

There are collections for plus-size, for the transsexual people and for the disabled, ignoring the stereotype of beauty. This trend is expected to pick up even more in the coming years given increased clamor for increased diversity and equality by consumers.

Challenges Faced by the Industry

Competition

The demand for apparel and fashion accessories market in India is growing rapidly, thus there are more and more local and foreign companies encroaching into this market. Due to the changes in technology and increased globalization shoppers have become more picky making it difficult for brands to remain relevant. 

Disruptions in supply chain

The COVID-19 pandemic did affect the manufacturing process, bargaining power of buyers, and availability of raw materials including fashion brands originating from India. To manage these risks, brands brought strong supply chain that helped it adapt to the various unpredictable situations.

Skills Gap

Even so, several challenges transpire about the skills available within the twenty-first-century workforce of the INDIAN FASHION INDUSTRY. The enterprise noted that fashion graduates are often not well-equipped to face the market and start pursuing their dreams due to their theoretical preparation and inadequate practical experience. 

Thus, Indian fashion brands require promoting talent acquisition, training and offering proper guidance, and presenting alliances with educational establishments to produce talented professionals.

Opportunities for Growth

Export Potential

The Indian fashion industry has tremendous export possibilities largely due to availability of tradition, skills and variability. Currently, most Indian fashion brands are suppliers to international markets especially the US, Europe and Asia and the demand for Indian fashion is steadily rising. 

The growing world awareness sustainably and ethically can indeed become a unique selling proposition for Indian brands. To harness such an opportunity, brand managers need to emphasize on quality, design, and innovation within products’ manufacture to conform to international standards and legal requirements.

 E-commerce Growth

The predicted indicates a Compound Annual Growth Rate of 20% for the e-commerce market in India and it is expected to stand at $99 billion by end of 2024. Such growth is beneficial to Indian fashion brands to take advantage of the vast market as more people are inclined towards quality fashion and clothing. 

Textile and Clothing Sector of India 

The Indian textile industry directly engages more than 45 million persons and 60 million persons indirectly. It forms about 4.5% of the India’s Gross Domestic Product (GDP) and 13.8% of the India’s Index of the Industrial Production (IIP). 

Textile industry continues to be one of the most important in its exports, where it contributes approximately 13 percent. According to total exports, this figure can be 5%, and it constituted $ 42. 24 billion.

Fashion Brands in India

Among the global clothing chain stores that have entered Indian markets are Benetton, Zara, Vero Moda, Calvin Klein Diesel, and Tommy Hilfiger. 

These brands have had improved sales and made Indian people appreciate them due to their fashionable and international look. Especially, brands like Zara, Armani, Forever21 and Uniqlo are popular, occupying higher sales per area than more departmental or hypermarket stores.

On the other hand, there have been Indian companies like the Anita Dongre, Manish Malhotra, Arvind Group, Madura Fashion and Lifestyle, Raymond Apparel, Trent Retail, Reliance Retail, Future Group that have ventured into its fashions and apparel that are very common among the Indians. Not only this, but Artificial Intelligence is also becoming an integral part of industry.