India - one of the Rising Fashion Markets
India is a rising star in fashion market. The economic in Asia is growing, and we can expect that India will be one of the rising markets in 2019. More and more international brands are entering India market, what are the opportunities they see and what are the challenges the brands might face?
India’s apparel market will be worth 59.3 billion in 2022, it will become the 6th largest market in the world, according to Mckinsey Fashion Scope report. In these two years, there are around 300 international fashion brands are planning to open retail store in India. However, India is still a complicated market, there are opportunities but also challenges. The population in India is 1.2 million, 460 million people are active online in 2018, by 2021 are expected more than 900 million Indian consumers will be active online.
According to the report “The State of Fashion in 2019” released by Mckinsey and Business of Fashion, for a big part of Indian women consumers, traditional clothes are still their top choice. In 2017, the selling of traditional clothes is 70% in the market, the consumers might become curious of western style of clothes, however it is predicted that traditional clothes are still placing 65% share in the market by 2023. Another main challenge is transportation. Nearly 40% of road network is unpaved by 2016. It will be difficult for retailers to deliver the product.
The brand will also need to have lots of license in order to enter the Indian retail market. For brand players, enter the market with online local platform will be an easier way to step in.