The online fashion retail market in India is experiencing rapid growth, with projections indicating a potential increase of US $ 22.97 billion between 2021 and 2026. Factors such as increased internet penetration, affordable smartphones, and the convenience of e-commerce platforms have contributed to this trend. The surge in online fast fashion, driven by changing consumer preferences and technological advancements, has revolutionised the way Indians shop for clothing and accessories.
With a young population of 1.4 billion and rising middle-class incomes, India offers significant growth potential for the industry.
Social media platforms like Instagram have played a crucial role in driving the demand for trendy and affordable fashion items. They have facilitated the reach of brands to a wider audience, creating a wave of aspiration among the young population. This has led to increased interest in staying fashionable and trendy.
Reliance Industries, led by Mukesh Ambani, recently struck a deal with Chinese online retailer SHEIN to reintroduce the brand to India. The partnership aims to strengthen Reliance Retail’s position in the online fashion segment, providing export opportunities and contributing to the growth of the online fast fashion sector in India.
Recognising the potential of the e-commerce apparel market, start-ups like Beyoung have emerged, targeting young consumers by offering trendy and affordable clothing options. Beyoung focuses on menswear and caters to both large and smaller cities across India.
Established brands like Madame have made significant investments in e-commerce, experiencing remarkable growth in online sales. As digital payments become more prevalent and digital transformation advances in India, further growth is anticipated in the online fashion segment.
Despite the positive outlook, the growth of fast fashion in India has raised concerns about its environmental impact. The textile industry, known for being a major polluter, consumes large amounts of water, land, and energy, and employs chemicals and dyes that contribute to pollution. Experts emphasise the need for sustainable measures and stricter laws to make the sector eco-friendlier.
While some brands are adopting sustainable practices, the high rate of returns remains a challenge for online fast fashion retailers in India. Consumers often return products due to issues with fit or quality, leading to additional costs and logistical challenges.
Logistics also pose a significant hurdle in a vast country like India, where infrastructure development is still required to support efficient delivery systems.
Despite these challenges, the demand for affordable and trendy clothing is expected to continue rising, driven by the increasing adoption of digital platforms and growing fashion consciousness among Indian consumers.
