Emergence of India Fast Fashion Market
The fast fashion industry began emerging in India in the early 2010s as disposable incomes started rising. Companies started noticing changing consumer habits and desire for latest trends. Indian consumers, especially millennials and Gen Z, started following global fashion trends more closely driven by increased social media usage. They wanted new outfits for every occasion at affordable prices without compromising on styles. This created opportunities for fast fashion retailers to enter the market. Brands like H&M, Zara, Forever 21 entered India seeing potential to replicate their successful global business model here. They started offering latest international trends within weeks at throwaway prices which became very appealing to Indian consumers.
Rise of Domestic India Fast Fashion Market Players
Seeing success of global India Fast Fashion players, various Indian entrepreneurs also started domestic fast fashion brands to cater to this growing demand. Companies like Vero Moda, ONLY, Trendin, Delhi based Max Fashion emerged as frontrunners. They studied consumer behavior and understood that Indian consumers want fashionable clothes in line with latest Bollywood/celebrity styles. These brands started offering stylish outfits inspired by Indian movies/celebrities within 2-4 weeks at 1/3rd to 1/4th prices of similar branded clothes. Their quick response capability and connection with Indian fashion trends made them very popular especially in tier 1 and tier 2 cities. Various online Indian fashion portals like Myntra, Ajio also jumped into fast fashion space realizing the potential.
Explosive Growth in Last 5 Years
The past 5 years have been tremendously successful for fast fashion retailers in India. Their target market of young working professionals have grown exponentially with increased spending power. In metro cities, it has become common for youngsters to shop for new outfits every 15 days. Various reports estimate Indian fast fashion market to have grown at a CAGR of over 25% during 2015-2020. Major retailers have scaled up aggressively during this period. For example, H&M present in 8 cities in 2015 has expanded to 38 cities presently. Domestic retailers have also turned profitable within a short span of time. The affordable prices coupled with rising fashion and celebrity conscious culture has made fast fashion mainstream in tier 1 and tier 2 cities respectively. It is estimated Indian fast fashion market has become $15 billion industry presently and still has huge headroom for growth.
Challenges for sustainable growth
While fast fashion revolutionized clothing consumption patterns in India, it also brought negative environmental and social impacts which are concerns for long term sustainable growth:
– Fast fashion promotes quick disposable of clothes which generates massive textile waste that chokes landfills and pollutes the environment. It is estimated that apparel industry alone contributes 10% of world’s carbon emissions and 20% of wastewater.
– The ultra-low prices and quick turnover model relies on exploiting low-wage garment workers in developing countries where ethical compliance is often compromised. Issues of long working hours, low pay, unsafe working conditions are challenged.
– Overproduction and increased usage of non-bio fabrics like polyester damages environment further. Polyester constitutes 60% of clothing today and releases microplastics into water bodies.
– Constant pushing of new collections every few weeks promotes an unsustainable “buy-use-dispose” cycle of overconsumption just to keep up with latest trends. It negatively impacts consumer mindsets.
– Issues around transparency in factories, material sourcing are also concerns for companies to address for long term credibility.
– COVID-19 has further impacted the sector raising issues around job/income security of supply chain partners due to store closures.
So while the convenient prices and styles are attracting consumers in large numbers, fast fashion industry needs to prioritize reducing its ecological footprint and improving working conditions across supply chain to achieve responsible growth going forward in India. Adopting sustainable materials, manufacturing processes and circular economy principles are the need of the hour.
Positive Developments
However, there are some positive developments showing the industry’s urgency to become more environmentally and socially sustainable:
– Major retailers have started sustainability reports and initiatives like using more organic/recycled materials, investing in clean technology, targeting zero discharge of hazardous chemicals.
– Domestic players are focusing on using bio fabrics, supporting local artisans for employment generation.
– Customers are also getting more aware and demanding ethical and eco-friendly options while the trend for vintage and up-cycled clothes gains momentum.
– Government regulations around Extended Producer Responsibility are pushing brands to set-up viable take back and recycling programs for used clothes.
– Collaborations are happening between industry, NGOs, startups on innovative solutions for closed-loop recycling, traceability using block chain etc.
– Consumption is slowly shifting from excessive to more mindful buying driven by health, environment and community considerations post pandemic.
– Social compliance audits are being strengthened at factories to prevent exploitation of workforce.
Overall, fast fashion has undoubtedly revolutionized clothing consumption patterns of new India but its externalities also cannot be ignored. As the market scales further, Indian retailers will need to identify innovative solutions advancing towards a sustainable business model respecting people and planet. Adopting circular principles holistically in their design, manufacturing and customer engagement can mitigate risks while delivering on convenience and trends responsibly. With collaborations across sectors, fast fashion industry in India has an opportunity to pioneer a more ethical and eco-friendly future.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
