A recent report by Bain & Company and Myntra projects India’s online lifestyle market to expand significantly, reaching US $ 40-45 billion by 2028 from its current US $ 16-17 billion. This growth will be fueled by increasing online penetration, which is expected to rise from 13 per cent to 18-22 per cent, driven mainly by demand from Tier-2 and beyond towns.
Nandita Sinha, CEO of Myntra, highlighted the untapped potential of the online fashion sector, noting that it is “just scratching the surface.” She emphasised the importance of attracting new customers and encouraging frequent purchases across various categories, indicating that the market has much room for growth.
Currently, India boasts about 175 million online lifestyle shoppers, who make around six to seven purchases annually. Notably, Gen-Z shoppers, born between 1997 and 2012, are leading this trend, buying eight to nine times a year and favoring new, insurgent brands. These brands now account for 26-27 per cent of their shopping basket.
Global brands are also eyeing the Indian market, with 90 per cent of the top 50 global brands already present in India. Over half of these brands have annual revenues exceeding US $ 30 million in the country, and 60 per cent of them launched in India through online platforms.
Shyam Unnikrishnan, a partner at Bain & Company, underscored the importance of relevant and value-sensitive assortments for global brands. Efficient sourcing and strong brand-building efforts, particularly through social media, are crucial.
Both executives stressed the importance of an omnichannel strategy, where online and offline presences complement each other. Offline stores provide credibility and recognition, while online platforms offer broader access to fashion trends and a wider customer reach.
This symbiotic relationship is essential for the continued expansion of India’s online lifestyle market.
