Spotlight on the Far East
9 April 2019
Author: Jasmine Waters
If the fashion industry has taught brands and consumers anything, it’s that we all work better, together. Aside from the already well-known fashion capitals across the globe, 2019 expects to see the rise of India as a force to be reckoned with. But why should brands choose to utilise their growing market, and what are the possible pitfalls?
How has the Indian market changed?
India is now an upcoming focal point in global fashion, with a number of social and economic reasons mean companies are now trying their luck overseas. The apparel market alone is predicted to reach a value of $59.3 billion in 2022, which will make it the sixth largest in the world. India’s ‘middle class’ is also forecast to expand by 19.4% per year, taking over China, Mexico and Brazil. This surge of economic growth, partnered with a higher rate of national income, seems likely to create a whole new class of consumer, comprised of well paid ‘professionals’ who want to look good, and are happy to do so through the level of consumption many of us are familiar with. As it stands now, 300 international brands are looking to expand and open stores in India, but it is market that remains extremely complex.
What are the possible pitfalls?
India’s apparel business is said to remain “largely unorganised”, with formal retail only accounting for approximately 35% of sales in previous years. The low quality of India’s infrastructure means the country continues to lag behind many other Asian countries, making basic retail practices such as delivery and retail stock more difficult. On top of this, brands need to understand every consumer detail, down to which colours, designs and personalisations work. Traditional Indian styles of clothing still remain default choices, but appetite for Western fashion is only growing more apparent. There is also an increasing ‘tech-savviness’ among consumers, with technology itself now being for the many instead of the few, meaning bridges for new brands are not impossible to build. With Indian authorities keen to promote investment, the market itself offers great promise - increasing strong economic and social growth is unquestionable providing the next big, global industry opportunity
Photo credit: www.allmyfriendsaremodels.com