NEW DELHI: India’s fashionistas are having a moment. The domestic lifestyle market, comprising apparel, beauty, accessories, and footwear, is poised to balloon to $210 billion by 2028, according to a joint report by Bain & Company and Myntra.
Currently valued at $130 billion and projected to expand at a compound annual growth rate (CAGR) of 10-12%, this translates to a potential windfall of $80 billion in incremental spending, driven by a confluence of factors.
Leading the charge are India’s digital-savvy Gen Z shoppers, born between 1997 and 2012. These fashion-forward consumers, numbering around 60 million, are heavily influenced by the latest trends and social media influencers. Their insatiable appetite for new looks is reflected in their purchase frequency—eight to nine times a year compared to the national average of five to six. Currently, Gen Z accounts for 20-25% of the online lifestyle market, valued at around $4 billion in gross merchandise value. While they transact more frequently, their individual order values tend to be lower.
Anandita Sinha, CEO of Myntra, emphasized the influence of Gen Z on fashion trends. “They are very, very exposed to what’s happening across the globe in terms of trends and styles. They want to have a new look every time they step out, and that’s driving the frequency of purchase. They also make up almost 20-25% of the overall e-lifestyle category today,” said Sinha.
India’s online lifestyle market, currently estimated at $16-17 billion, is likely to surge to $40-45 billion by 2028. Fashion remains the undisputed king within e-commerce, commanding a 75% share. Accessories and women’s apparel are projected to witness the fastest growth within this segment.
The report highlights the significance of online lifestyle shoppers to the category. In 2023, over 175 million customers are expected to have shopped for lifestyle products online, averaging six to nine times annually. With 40-45% of first-time e-commerce shoppers, lifestyle is their initial purchase, making it a crucial gateway category for retail.
These online shoppers are visiting more platforms and visiting them more often; these shoppers are also completing purchases over a shorter duration. Deeply entrenched shoppers (defined as those who spend greater than ₹50,000 annually on a platform) visit their preferred platform at least once a day on average and purchase over 25 times per annum versus the market average of six to seven,” the report noted.
The trend towards organized retail will be another significant contributor. While 60% of the overall lifestyle market is unorganized offline retail, the organized segment is projected to reach 35% by 2028.
