As global apparel markets plateau, with projected CAGRs of under or around 5% in Japan, Europe, the US, and China, India stands apart. The country’s apparel sector is forecast to grow at a rapid 10–12% CAGR from 2024 to 2030, making it one of the fastest-growing large-scale markets globally.
India is ready – structurally and culturally – for a new wave of brands. Consumers across segments are actively seeking new propositions, wardrobes are expanding across occasions, and pricing and trend-orientation are emerging as key decision drivers. At the same time, distribution is formalising rapidly, with online, exclusive brand outlets, and multi-brand retail projected to account for over 60% of apparel purchases by 2030.
The ecosystem is also primed for growth: over 800 homegrown digital-first brands have launched since 2019, and global players are scaling fast. Several recent entrants have crossed the USD 50 million revenue mark within just 2-3 years of entering the Indian market, proof that with the right playbook, rapid growth is possible.
The scale is there, but unlocking it requires precise choices around price positioning, entry model, launch sequencing, localisation, distribution, and marketing. Global brands that move now are best placed to lead.
India is now firmly on the radar for both local and global apparel players, with local brands like Zudio and global brands like Uniqlo and H&M having recently found success in the Indian apparel market. For global brands, India is no longer just a future market; it’s a live testbed for growth, relevance, and reinvention. Those who move early will have the advantage.
India: The Growth Engine the Industry Needs
1. A Market Hitting Its Stride
India’s apparel market is expected to hit USD 130–150B by 2030, growing at 10–12% CAGR – with branded apparel accounting for the majority of spend by then, and growing at over two times the pace of unbranded.
2. Consumers Are Ready
From value-conscious millennials to status-seeking Gen Z, Indian consumers are:
- More open to new brands than ever before
- Actively seeking unique, occasion-led fashion
- Comfortable buying through organised retail and digital channels
These are structural trends that will redefine the market in both the short and long-term, and brands that capitalise on shifting consumer preferences have the opportunity to make significant inroads in emerging market niches.
3. Success Stories Prove It’s Possible
- Homegrown Zudio scaled from 40 to 500+ stores in just five years by offering trendy, affordable fashion with strong mass appeal, delivering +102% revenue CAGR (FY19 to FY24)
- International giant H&M cracked early adoption by targeting aspirational consumers seeking style and value, delivering +22% revenue CAGR (FY19 to FY24)
- Uniqlo, a global brand, scaled in India through its quality and function-led “LifeWear” concept. Kurtas and local designer tie-ups added cultural relevance, while a metro-first rollout built early momentum, leading to +328% revenue CAGR (FY19 to FY24).
- Bluorng¸, founded in India, has gained strong traction by tapping into India’s growing streetwear movement. Positioned as a homegrown digital-first brand, it blends global style cues with local identity, offering bold, fashion-forward apparel that resonates with Gen Z and younger millennials. Its online-first model has enabled it to scale quickly, leveraging influencer-led content and a sharply defined aesthetic to build community and brand heat.
This isn’t greenfield. It’s fertile soil.
Unlocking the Opportunity: Strategic Levers for Expansion
1. Position the Brand for India’s Middle
India’s branded apparel market is fast becoming mainstream, and over 50% of apparel spend will be brand-led by 2030. We see the biggest opportunity for global brands in the masstige or premium price bands, where aspirational consumers are increasingly prioritising style, quality, and perceived value.
Most global brands enter with a wide price band and refine it by:
- Pinpointing target customer needs and barriers to trial
- Assessing the total addressable market and competitive benchmarks
- Aligning closely with anchor brands to define launch price points (+/-10–15%)
In practice, this often results in global brands upgrading their home-market positioning (from mass to masstige or masstige to premium) appeal to the appropriate customer segment in India.
2. Get Entry Mode and Phasing Right
There’s no one-size-fits-all model for entering India. The optimal entry route depends on how you balance:
- Speed vs control
- Capital intensity vs operational risk
Options range from low-risk licensing to full ownership or joint ventures. Regardless of model, successful global brands follow a clear phasing strategy:
- Phase 1: Launch core categories to establish a clear brand identity.
- Phase 2: Expand product portfolio through wider SKU spread and ancillary categories, to address varied preferences and drive better consumer engagement & stickiness
- Phase 3: Attain category leadership through deeper market penetration (in smaller cities) and vertical expansion as per the local market.
Notably, global brands are now scaling faster, with several having crossed the $ 50 million revenue mark in just 2–3 years.
3. Localise for Relevance
India is not a copy-paste market. Fit, fabric, and aesthetic preferences vary widely by region, climate, and occasion. Even globally consistent design systems need to flex for India’s cultural context.
Localisation levers include:
- Fit and fabric: Adapting silhouettes, sizing blocks, and material blends to suit Indian body types and climates
- Design sensibility: Introducing culturally attuned capsules, e.g., festive wear, kurtas, Indo-fusion edits
- Manufacturing model: Balancing local production for value lines and faster refresh, with imports for complex styles and design fidelity.
Choosing the right manufacturing model is critical. Standard lines benefit from local sourcing, while fashion-forward collections often require imported cycles for agility and control.
4. Be Strategic with Channels
Distribution is formalising fast. Online and organised retail are expected to account for over 60% of apparel purchases by 2030, levelling the playing field for newer entrants.
Most winning global brands start with EBOs—flagship stores that establish brand codes and build trust.
From there, scale is unlocked via:
- Digital: D2C websites, e-commerce marketplaces, and quick-commerce platforms
- Offline: Multi-brand retail (MBOs, LFS) with strong in-store branding, trained advisors, and local activation
Channel mix should reflect category dynamics, price position, and geographic focus. For instance, premium casualwear may favour online-first discovery, while innerwear or ethnic wear may benefit from tactile trial and assisted selling.
5. Build Brand Heat Early
The battle for attention is won (or lost) early. New brands must punch above their weight to build visibility, trust, and momentum.
Marketing is typically digital-first, often utilising influencer collaborations, sharp content, and performance media. But physical presence still matters, especially at scale. A phased mix might look like:
- Launch: Localised influencer buzz, digital ads, pop-ups, and high-impact store unveiling
- Scale: ATL campaigns across print, OOH, radio, and cinema to build salience
- Maturity: Integrated media planning tied to category spikes, seasonality, and brand lifecycle
The approach should flex by brand recall. Emerging brands need to work harder upfront; established names can build more selectively.
India’s Fashion Landscape
India’s fashion landscape is changing fast:
- Rapid brandification: Branded spend is outpacing unbranded, driven by urbanisation and aspirational consumption.
- Brand boom: Over 800 homegrown D2C brands launched in the last decade. Consumers are hungry for choice.
- Trend-first mindset: Style is a top purchase driver, but must be balanced with pricing and quality expectations.
- Wardrobe evolution: Occasion-led demand (from partywear to activewear) is expanding the share of wallet.
- Channel disruption: E-commerce and organised retail are breaking old barriers for new entrants.
And the results are showing. India is now one of the fastest-scaling markets globally, and in the next 10 years, we expect to see 6–8 global brands cross $1 billion revenue in India alone.
India is no longer an optional bet; it’s a core strategic market. But unlocking its full potential requires rigour across price, positioning, product, and go-to-market. Several global brands have already proven that success can come fast. Those results are not outliers; they are signals of what is possible when execution meets market readiness.
Global brands that win here do so not by replicating what worked elsewhere, but by tailoring playbooks for India’s unique scale, complexity, and energy.
Why OC&C and Redseer?
While a broad playbook does exist, it’s important to remember that no two brands play the same game. What works for a D2C disruptor may not translate for a heritage powerhouse. Choices around pricing, localisation, channel mix, and speed to scale all need to be meticulously tailored to your brand DNA, consumer promise, and growth ambition.
The good news? India is ready, consumers are engaged, infrastructure is in place, and success stories are growing.
But tapping into that momentum requires more than intent. It demands strategic insight, planning, and the ability to cut through complexity – fast.
With Redseer’s deep pulse on Indian consumers & strategy and OC&C’s global apparel brand strategy expertise, we bring uncommon senseTM to the India opportunity, turning aspiration into an actionable and winning strategy.
To discuss our experience in more detail and how we can unlock new market opportunities and your next wave of growth, get in touch with our experts today, where we can discuss your specific objectives to solve and take you through our detailed report.
