The Indian fashion industry, long viewed as a powerhouse of potential, has recently been underperforming. Several leading brands are struggling to maintain consistent growth. Last year’s revenue growth (FY 2023-24) for publicly listed fashion players indicates uneven performance uggesting a disconnect between consumer demand and market offerings.  

At the same time, the rise of new-age, digitally native brands has intensified the competition, as these agile players are better aligned with the evolving preferences of today’s consumers. Legacy brands, despite their long-standing market presence, are finding it difficult to keep up with their younger, more nimble counterparts. 

Shifting Consumer Preferences

To succeed in this challenging environment, brands must understand and cater to rapidly shifting consumer preferences. Indian shoppers are more trend-conscious, demanding, and digitally savvy than ever before. Our study delves deeper into several core drivers influencing consumer behavior across demographics & segments. Brands that can decode these drivers will be better positioned to navigate the complexities of this evolving market.  

• Price and Quality: Fundamental across all consumer cohorts

• Trendy Collections: The next most important factor, indicating how consumers are thinking differently about fashion.

• Delivery Timelines and Size Inclusivity: Faster deliveries and a wide range of product sizes (beyond just the basic size portfolio).

Style Characteristics Across Consumer Cohorts 

By analyzing consumer behavior through the lens of style segmentation, brands can uncover opportunities to tailor their offerings more effectively. Our research identifies distinct consumer profiles, each with unique needs and expectations. From “value hunters” who seek practicality and affordability to “classy affluents” who prefer exclusivity and luxury, the Indian fashion consumer is diverse and expects more personalized shopping experiences​.  

New-age brands are excelling at offering collections that meet the unique demands of each cohort. They have been quick to capture these diverse needs, offering highly personalized collections that resonate with their target segments. Legacy brands, while well-established, have much to gain by learning from these players.

The Rise of Value Retail 

While new-age and legacy brands continue to compete for the wallet of the young GenZ shoppers and the mid-high income millennials (& beyond), value retailers (across online & offline formats) are growing rapidly, catering to the unique needs of low-mid income millennials – typically living in family setups & driven by household level decision making. Value retailers are essentially enjoying the share of the wallet of these consumers (traditionally spent on unbranded apparel & footwear), by providing them with a well-organized & branded shopping experience at affordable prices.  

The Purchase Journey 

According to our study, consumers are increasingly preferring direct retail formats, like exclusive brand outlets and online D2C platforms, given they provide a curated discovery and purchase experience​. However, consumers also value certain aspects of the marketplace experience (online + offline), especially faster & reliable deliveries and post-purchase support such as returns and refunds. Both formats have something to learn from each other to deliver an improved customer experience leading to growth. 

From Challenges to Opportunities 

The Indian fashion industry, while currently facing challenges, holds significant growth potential for brands willing to adapt. For decision-makers in the fashion and retail sectors, the path forward is clear: agility, consumer-centric offerings, and strong market engagement will be critical to capturing market share and unlocking long-term success. 

At Redseer Strategy Consultants, we provide the insights and strategies businesses need to thrive in today’s competitive landscape. Whether you’re a legacy brand looking to innovate or a digitally native player aiming to scale, our bespoke advisory services will help you stay ahead of the curve. We specialize in helping companies identify growth opportunities, navigate industry shifts, and drive long-term profitability. 

Let’s talk about your growth strategy. Get in touch with us today to explore how we can help you unlock the full potential of India’s dynamic fashion market. Download our latest report for more insights or reach out to our team of experts for a personalized consultation.