India’s online fashion and lifestyle market is set to expand significantly, growing from US$ 16-17 billion to US$ 40-45 billion by 2028, according to a Bain & Company and Myntra report titled Decoding India’s Online Fashion and Lifestyle Shopping Trends. The broader lifestyle market, valued at US$ 130 billion in 2023, is projected to reach US$ 210 billion by 2028, with a compound annual growth rate (CAGR) of 10-12%. E-commerce penetration in the lifestyle sector is expected to rise from 13% to 18-22% by 2028, meaning nearly one-fifth of lifestyle spending will be online. Over 175 million Indians online shop for lifestyle products, averaging 6-7 transactions per year. Gen-Z consumers drive growth by shopping 8-9 times annually.
The report identifies several growth drivers, including decreasing inflationary pressures, rising incomes, and the influence of fashion-conscious Gen-Z consumers. Advancements in AI-driven personalization, virtual try-ons, and voice-assisted shopping enhance the online shopping experience. At the same time, social media contributes 20% of additional traffic for the top 30 direct-to-consumer (D2C) brands. For global brands, a strategic entry into the Indian market involves offering a unique customer proposition, optimizing sourcing, and leveraging partnerships. CEO of Myntra, Mr. Nandita Sinha, noted that 3 in 5 global brands entered India via online channels over the past year, emphasizing the importance of a comprehensive launch strategy and Myntra’s extensive reach to 99% of serviceable pin codes.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.