Fast fashion grows faster in FY24

While fashion in India saw a flattish 6 per cent growth in FY24, fast fashion grew at a much faster rate of 30-40 per cent. As the $10 billion fast fashion market is still 3X times smaller than the largest global fast fashion brand, Shein, the growth potential is immense, finds RedSeer.

As per RedSeer, fast fashion could potentially be a $50 billion opportunity by FY31. While usual fashion brands launch two-three collections per season, fast fashion will have at least 50 collections per annum.

In the ultra-value segment, Zudio has been doing well with its supply chain nimbleness. It enables brands to launch low-priced products profitably through massive scale. This accounts to 10 -20 per cent of the market.

Premium brands like Zara have their brand recall and loyalty. Riding on the premiumization wave amongst Indian consumers, this segment might see a healthy flow of brands, including global brands and a few designer Indian brands. Premium segment accounts for around 30 per cent of the market.

The mid-value segment, which includes brands, including H&M and Snitch, is the space where there could be a high proliferation of digital-first brands. It is the largest segment with 50 -60 per cent of the market. In addition to the low entry barriers, the customers in this segment are also fairly experimental. As a result, the mid-value fast fashion space is expected to stay highly competitive, and brands with unique and value-adding positioning are expected to appeal strongly to customers.