Brands need to woo Gen Z buyers dominating online shoppers: Myntra, Bain & Co report
The growing focus on lifestyle spend is backed by growth in affluence, premiumization and organized purchase as shoppers shell out disposable income in the easing inflationary environment.
Structural shifts in consumer wants and preferences, along with demand for superior customer value proposition, will drive India’s $130-billion lifestyle market, according to a report released by Myntra and Bain & Company.
Fashion accounts for nearly three-quarters of the e-lifestyle market, other segments such as beauty and personal care are also expected to grow significantly, with a growing shift towards organised segments.
This market has seen a rise in Gen Z shoppers, with one-third of shoppers from this category seeking differentiated products and having a preference for immersive shopping experiences. They account for a whooping 25% share of GMV for e-lifestyle segment. This section also focuses on purpose-led brands targeting clear customer niches.
“These brands have tapped the Gen Z demand by offering trendy and value assortment, investing in an immersive shopping experience, and doubling down on social media and influencer marketing,” Amanpreet Talwar, Associate Partner at Bain & Company, told YourStory.
The online push in the lifestyle market has led to the creation of trend-first segments with customers expecting large assortments and faster refresh in styles, as much as more than 500 styles per week. Moreover, two out of three shoppers are from cities beyond the top 50 while 50% of shoppers belong to the low/low-mid income segment.
India has kept up with the growing trend of affluence and premiumisation, and the country has matured as a fashion-sourcing destination for brands. For instance, nearly 60% of the assortment for Decathlon India and 30% of Asics is sourced domestically.
The online channel has turned out to be a preferred choice, with three in five global brands seeking a foothold in the country entering India via the online route. Online brands get access to a large customer base, along with granular customer insight and 360-degree operations support. Nearly 50% of these global brands have greater than $30 million in revenue in India.
“India is a key consumer market for global lifestyle brands. 90% of the top 50 global brands are already in India. Scaled global brands in India are growing twice as fast as the market and over the last one year over 60 brands have entered or planned their launch in India,“ Prasanna Rajan, Head of Strategy, Myntra told YourStory.
The playbook is the same for global brands or domestic D2C brands trying to scale in India through online channels if they want a chunk of India’s growing lifestyle market, which is expected to reach $40-$45 billion by 2028, according to the report. They need to focus on creating efficient sourcing channels to keep a cap on costs, offer differentiated customer propositions by assessing granular customer data, and through trendy assortment, value-for-money products, and omnichannel experience.
(The story has been updated to reflect a comment from Myntra executive.)
Edited by Kanishk Singh