In the past few years, the emerging global trends, the adaptability of new clothing styles, and the easy availability of branded fashion products have contributed immensely to the development of the Indian fashion industry. One way to categorize fashion and apparel is to classify it as formals, semi-formals, ethnic, sports, etc. The industry, on the whole, is also witnessing a new phase where slowly a shift is being seen from western clothes and brands to Indian designer wear and indigenous brands and clothing.
This transformation in the fashion industry is largely due to the income shift (with more earning members in a family) and the penetration of big brands into the Indian market. The Gen Y or millennials are more inclined towards purchasing new, trendy, and fusion clothing rather than wearing normal mundane clothes that are uniform in look and commonly found in most wardrobes.
The Indian fashion industry as a whole is witnessing a new outlook and a makeover thanks to the evolving lifestyle of the youth and their desire to find out and implement the latest trends in the market.
Let’s analyse these trends, latest fashion business news, market size, and how leading e-commerce fashion businesses are surviving.
With an estimated population of 1.35 billion, India is one of the largest markets for fashion brands. The country serves so many people and has a large customer base that is increasingly accepting global fashion trends. Interestingly, some of the smaller, newer, and more innovative brands are starting new fashion trends in India.
Currently, the Indian fashion industry amounts to USD 7,864 million, and the biggest contribution to this revenue is through the apparel industry. In fact, Statista, a market data portal, estimated that the revenue of the fashion industry in the country would annually grow by 24.2%. This means that by the year 2022, the market value of the fashion segment will reach USD 18,732 million. Of course, according to these numbers, this is the best time to consider starting a fashion business.
The Income made by Leading Online Fashion Providers
Fashion industry accounts for 18% of the entire sales across online platforms. Big retail giants such as Amazon, Flipkart and its fashion-centric websites Myntra and Jabong are focusing more on fashion products than other products.
- Flipkart alone crossed USD 1 billion sales in the year 2018, and its fashion-dedicated groups, Jabong and Myntra together bagged USD 1.2 billion sales in the same year.
- For Amazon, these figures are unbelievably huge. In the US, the retailer is expected to sell fashion products worth USD 52 billion till the year 2020. Moreover, according to CNBC, Amazon will soon become a leading apparel retailer leaving behind competitors like Walmart.
Production and Employment
The Indian textile industry is one of the oldest in the country. It contributes about 10% to the total manufacturing carried out in India and 2% to the GDP of the country. An astonishing fashion industry news is that the textile industry alone employs 45 million people of India.
The size of this industry was USD 150 billion till 2017 and which is now expected to cross USD 250 billion by the year 2019. 
Economic and Marketing Trends in Fashion Industry
1. Content-Based Marketing of Products
With the emergence of new fashion brands, the popularity of content-based marketing is also growing. Most brands have realized how the power of online marketing and delivering fashion industry related news can help in attracting more customers.
To add to this trend, influencer marketing and referral programs have taken over the online world. Now, innovative designers who are just entering the market are using influencers to reach out to prospective consumers and seek to build a reliable relationship with them. Since influencers are people who have a huge following on social media platforms, these fashion brands instantly get a good outreach.
Moreover, many fashion business brands start their own blogs that deliver fashion advice, tips, and tricks to users which finds immense popularity among people because needless to say, today, everyone reads updates on industry behaviour and fashion trends and tips.
2. Balancing of User Expectations
The Indian fashion industry is accepting and adapting to not only the changing demands and global styles but also differently designed clothes. Now, many people would rather wear comfortable clothing than struggle in stylish clothes. This shift in user expectations has left many brands running backwards and changing the way they design clothes. Conversely, a lot of brands are already using comfortable fabrics and still giving it a fashionable, trendy look. The greatest examples of this are indo-western clothes and dresses that are manufactured all over the country.
Other than this, although people like to shop online, not being able to try clothes first, is a disadvantage and often affects the user experience. To remedy this, the e-commerce fashion industry giants such as Myntra have started offering try and buy solutions to users. Using this, you can try clothes at home and return immediately if you don’t like the fit.
As the custom-fit clothing is returning, online stores are adopting this practice too. You can give measurements and get clothes stitched through e-commerce websites in a few days. This trend is targeting every type of customer with its tailor-made and ready-made solutions. The trend is more dominantly seen in customized gift products such as t-shirts, wherein users can get funky designs printed on the fabric to give it a personalised and unique look.
3. Accepting and Adopting E-Commerce
Acceptance of technology and e-commerce platforms is still one of the biggest trends in the fashion industry. More and more brands are moving online, offering free shipping, and giving their users the convenience of ordering products from far away places which are being delivered at the doorstep.
In fact, the fashion industry news updates often display how a greater number of brands are offering the feasibility of trying products through the app itself. For instance, users can try glasses/glares through apps of few retailers. This reduces the chances of return and pleases the customers too as they can find out if the product will look good on them.
Other retail giants are offering clothing advice to users through their e-commerce apps. Once the user purchases a product or adds it to the bag, the app will suggest possible options to pair it with. For example, if you want to purchase denim, the app will suggest options of t-shirts, shirts, bag, shoes, and accessories to team the denim with to get a complete curated look. It is like your personal styling associate.
In a way, it is easier for retailers to sell through mobile apps and website. Though users may return the product, the popularity of online shopping still remains unmatched. This is because owing to a hectic lifestyle and busy schedules, fewer people now go to the market to shop. Hence, taking your products where your customer is, is a smart move.
4. Collaborating with Physical Stores
Just like Lenskart, many fashion industry giants are setting up physical stores. Users can go, try, and select the product on the store or buy it online as well. If the product bought online doesn’t fit or has some issues, it can easily be exchanged in a day at the store. This adds to the convenience of online shopping.
Collaborating with physical stores also gives retailers the feasibility of delivering the product as early as possible.
This model helps the e-commerce fashion industry providers to serve both categories of users- those who are online savvy as well as those who like to shop in person.
Potential of the Industry
The fashion industry has great potential with its emerging demands, that is expected to continue to rise, and employing technology-driven solutions in this sector. More brands and small designers are now willing to set up their own business to cater to the high demand.
All that is required is the right knowledge and guidance to help set up a business in the fashion industry and deAsra helps with the same while focusing on maintaining the fashion quotient of your business.