Fast fashion to comprise over 25% of total retail by FY31: Redseer
The Indian fast fashion market is also on track to cross $50 billion by FY31 as it continues to outperform other retail sectors, the Redseer report said.
Fast fashion in India is expected to make up for 25-30% of the overall fashion retail landscape by FY31, according to a report by Redseer Strategy Consultants.
Fast fashion as the name suggests refers to quick fashion styles dropped by retailers to capitalize on trends and fleeting fads. Traditional fashion, according to the report, produces 2 to 3 fixed collections every year. The collection is usually based on the Summer/Spring cycle or Fall/Winter cycle. On the other hand, fast fashion produces more than 50 collections annually and hosts perpetual production throughout the year. It also boasts a longer summer cycle.
The Indian fast fashion market is also on track to cross $50 billion by FY31 as it continues to outperform other retail sectors. The segment grew at a much faster rate of 30-40% as compared to the 6% growth experienced by the overall retail sector.
However, the growth and size are still small compared to how other players are operating on a global scale. the $10 billion fast fashion market in India is still 3x smaller than Shein, a global leader in fast fashion.
According to the report, there are a few key elements to building fast fashion brands. This includes timely trend identification, rapid prototyping & production, followed by an elastic supply chain for quick distribution. However, the job doesn’t end here. It is crucial that brands peg their products at an attractive price and focus on effective consumer engagement to drive virality.
According to the report, brands can be divided into three segments based on their price point. Ultra-value brands like Zudio bank on scale and distribution to log bigger margins as they price clothes to be extremely affordable for consumers. This operating model is however only manageable by brands operating on a massive scale, which involves heavy capital investments, therefore this segment is expected to be covered by larger conglomerates.
On the other side of the spectrum, premium brands like Zara are relying on brand recall and loyalty as it tries to capitalize on the premiumization wave among consumers. The entire segment should see a “healthy” flow of both international and global brands.
The sandwiched mid-value segment, with brands like Snitch and H&M, is where a lot of digitally native brands are propping up and thriving. There is a nil to low barrier of entry and consumers here are more experimental. Unique, value-adding positioning is crucial for brands to carve out a space in this competitive segment.
Edited by Jyoti Narayan