India’s online fashion and lifestyle market is projected to expand from $16-17 billion today to an estimated $40-45 billion by 2028, according to a Bain & Company-Myntra report.
Titled ‘Decoding India’s Online Fashion and Lifestyle Shopping Trends’, the report said that the broader lifestyle market, valued at $130 billion in 2023, is anticipated to increase at a compound annual growth rate (CAGR) of 10-12 per cent, reaching $210 billion by 2028.
E-commerce penetration set to rise
The penetration of e-commerce within the lifestyle sector is expected to rise from the current 13 per cent to 18-22 per cent by 2028, indicating that nearly one-fifth of lifestyle spending will be conducted online.
Presently, over 175 million Indians engage in online shopping for lifestyle products, with an average of 6-7 transactions per year. Gen-Z consumers, approximately 60 million strong, are driving this growth, purchasing 8-9 times annually compared to 5-6 times for non-Gen-Z shoppers.
Fashion dominates the e-lifestyle market, accounting for 75-80 per cent of the share, followed by beauty and personal care products. The market for online trend-first products is forecasted to expand from $0.5 billion to $4-5 billion by 2028, with online penetration expected to increase from 30-35 per cent to 50-55 per cent.
The report indicated that 90 per cent of the top 50 global lifestyle brands are active in India, with half of these brands generating over $30 million in revenue within the market.
What is fuelling the growth of e-lifestyle market?
Several factors are contributing to this growth, including diminishing inflationary pressures, rising incomes, a wave of fashion-conscious Gen-Z consumers, and a shift towards organised retail. Advancements in AI-driven personalisation, virtual try-ons, and voice-assisted shopping are also enhancing the online shopping experience.
The report also underscored the growing influence of social media in driving product discovery and purchases, noting that social platforms have accounted for 20 per cent of the additional traffic for the top 30 direct-to-consumer (D2C) brands over the past two years.
For global brands seeking to enter the Indian market, the report recommended a strategic approach that includes offering a distinct customer proposition, optimising sourcing, employing targeted marketing, and leveraging partnerships for market-specific growth.
How can brands benefit from the digital boom?
As India’s e-lifestyle market continues to develop, the report advised that brands and platforms must collaborate to offer the best value to Indian consumers, taking advantage of the country’s digital transformation and evolving consumer preferences.
Nandita Sinha, CEO of Myntra, stated that three in five global brands had entered India through the online channel over the past year. She highlighted that a comprehensive and high-profile launch, improved discovery, access to insights on the needs of fashion-forward Indian consumers, and Myntra’s extensive reach to 99% per cent of serviceable pin codes were key factors facilitating the expansion of global brands in the subcontinent.
First Published: Aug 07 2024 | 11:54 AM IST
