|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 103.45 Billion
|
|
CAGR (2025-2030)
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3.85%
|
|
Fastest Growing Segment
|
Online
|
|
Largest Market
|
North
|
|
Market Size (2030)
|
USD 129.34 Billion
|
Market Overview
India Readymade Garments Market was
valued at USD 103.45 billion in 2024 and is anticipated to grow with a CAGR of 3.85%
through 2030. The India Readymade Garments Market is a significant segment
within the country's textile and apparel industry, characterized by its
diversity, rapid growth, and evolving consumer preferences. This market
includes a wide array of clothing items such as shirts, trousers, dresses,
skirts, and ethnic wear, catering to both men and women across various age
groups and socio-economic backgrounds.
Key factors driving the growth of the
India Readymade Garments Market include the increasing urbanization, rising
disposable incomes, and changing lifestyle trends among Indian consumers. Urban
centers like Delhi, Mumbai, Bangalore, and Kolkata are major hubs for fashion
and garment consumption, influencing trends that ripple across the country.
The market is also shaped by the
emergence of organized retail chains, online shopping platforms, and a growing
number of domestic and international brands establishing their presence in
India. These entities contribute to the accessibility and variety of readymade
garments available to consumers, fostering competition and innovation in design
and pricing strategies.
Moreover, cultural diversity within
India influences garment preferences, with traditional attire like sarees,
salwar kameez, and kurta-pajamas coexisting alongside Western wear. This
diversity offers opportunities for brands and retailers to cater to niche
segments and regional preferences.
Key Market Drivers
Changing
Demographics and Urbanization
India's demographic profile, characterized by a young
population and a growing middle class, significantly influences the readymade
garments market. With a large proportion of the population under the age of 35,
there is a strong consumer base inclined towards fashion and trends. The
demographic dividend, combined with increasing urbanization as young Indians
migrate to urban areas for education and career prospects, enhances their
exposure to global fashion influences. This trend fuels demand for stylish and
contemporary clothing, as highlighted in a report by Public Desire which notes
that the average annual spending on clothing by an Indian amounts to
approximately USD 2,500, driving market growth.
Urbanization further accelerates this trend. Major
cities such as Delhi, Mumbai, Bangalore, and Chennai serve as fashion hubs
where trends are set and adopted rapidly. The concentration of retail outlets,
shopping malls, and online platforms in these urban centers enhances
accessibility to a wide range of readymade garments, catering to diverse
consumer tastes and preferences.
Rising
Disposable Incomes
Increasing disposable incomes among Indian consumers
have significantly boosted spending on apparel, including readymade garments.
As economic prosperity spreads beyond metropolitan areas to tier-II and
tier-III cities, more consumers have the financial capacity to afford branded
and premium clothing. This shift is evident in the preference for
higher-quality fabrics, fashionable designs, and branded apparel among urban
and semi-urban consumers.
The growth of the middle-income segment, in
particular, has been instrumental in expanding the market for mid-range and
premium readymade garments. Brands and retailers have responded by diversifying
their product portfolios to cater to varying income levels and consumer
segments, thereby stimulating competition and innovation within the market.
Influence
of E-Commerce and Digitalization
The proliferation of e-commerce platforms and
digitalization has revolutionized the retail landscape for readymade garments
in India. Online shopping offers convenience, a wide product selection, and
competitive pricing, appealing to tech-savvy consumers across urban and rural
areas. Platforms like Amazon, Flipkart, Myntra, and Ajio have capitalized on
this trend, leveraging data analytics and targeted marketing to personalize
shopping experiences and promote fashion trends.
Increasing access to digital devices and the internet
has democratized online shopping, providing a rich, immersive, and personalized
experience for customers across urban and rural areas. Despite this, online
sales in apparel still represent a high single-digit percentage compared to
overall apparel sales. To gain insights into consumer preferences, LocalCircles
conducted a national study titled "How India Buys Apparel," gathering
over 35,000 responses from consumers across 323 districts of India. The study
revealed that 61% of respondents were men and 39% were women. Furthermore, 43%
of respondents were from tier 1 cities, 33% from tier 2 cities, and 24% from
tier 3, 4, and rural districts.
Digitalization has also empowered brands and retailers
to engage directly with consumers through social media platforms, influencer
collaborations, and virtual fashion shows. These digital initiatives not only
enhance brand visibility but also drive impulse purchases and brand loyalty
among a tech-native demographic.
Fashion
Consciousness and Rapid Trend Adoption
Indian consumers exhibit a heightened sense of fashion
consciousness, driven by media exposure, celebrity endorsements, and peer
influence. Social media platforms, fashion blogs, and online fashion
communities play a pivotal role in disseminating global fashion trends and
influencing consumer preferences. As a result, there is a growing demand for
fast fashion—trendy, affordable clothing that aligns with current styles.
Brands and retailers are increasingly adopting agile
supply chain strategies to capitalize on fast fashion trends, reducing product
development cycles and enhancing responsiveness to consumer demand. This
trend-driven approach not only boosts sales but also fosters innovation in
design, fabric technology, and sustainable practices within the readymade
garments industry.
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Key Market Challenges
Fluctuating
Raw Material Costs and Supply Chain Disruptions
One of the primary challenges facing the
Indian Readymade Garments Market is the volatility in raw material costs,
particularly for fabrics like cotton, polyester, and synthetic blends.
Fluctuations in global commodity prices, geopolitical tensions, and environmental
factors such as climate change can disrupt the supply chain, leading to
unpredictable cost increases for manufacturers and retailers.
For instance, cotton prices can
fluctuate due to changes in global production, weather conditions affecting
crop yields, and shifts in demand from other industries like agriculture and
automotive. These fluctuations directly impact the cost of producing garments,
affecting profit margins and pricing strategies for brands and retailers.
Supply chain disruptions, exacerbated by
factors such as logistics challenges, transportation costs, and geopolitical
uncertainties, further complicate the market dynamics. Delays in raw material
procurement, manufacturing, and distribution can lead to inventory shortages or
excesses, affecting market responsiveness and consumer satisfaction.
Intense
Competition and Pricing Pressures
The India Readymade Garments Market is
characterized by intense competition among domestic and international brands,
retailers, and online platforms. Rapid urbanization and the proliferation of
retail outlets have led to an overcrowded market where brands vie for consumer
attention and market share.
Price sensitivity among Indian consumers
poses a significant challenge for brands and retailers, particularly in the
mass-market and mid-range segments. Consumers often prioritize affordability
and value for money, forcing manufacturers to optimize production costs without
compromising on quality or design. This pressure to maintain competitive
pricing while meeting consumer expectations for quality and style can squeeze
profit margins, especially in a market where pricing transparency is increasing
due to online comparisons and discount-driven sales events.
Moreover, the rise of fast fashion and
discount-driven strategies by e-commerce giants has intensified pricing
pressures. Brands must navigate these competitive dynamics while addressing
sustainability concerns and ethical sourcing practices, further complicating
their operational strategies and market positioning.
Regulatory
Compliance and Policy Changes
The Indian Readymade Garments Market
operates within a regulatory framework that includes labor laws, taxation
policies, and import-export regulations. Compliance with these regulations adds
complexity to business operations, especially for manufacturers and exporters
dealing with international markets.
Labor laws, in particular, require
adherence to fair labor practices, workplace safety standards, and minimum wage
regulations. Compliance with these standards is essential for maintaining
ethical manufacturing practices and ensuring consumer confidence in brands'
corporate social responsibility initiatives. However, stringent regulatory
requirements can increase operational costs and administrative burdens for
businesses, particularly smaller manufacturers and exporters.
Furthermore, changes in taxation
policies, such as Goods and Services Tax (GST) rates and customs duties on
imported raw materials and finished goods, can impact production costs and
pricing strategies. Uncertainties surrounding policy changes and their implementation
timelines can disrupt business planning and investment decisions within the
readymade garments industry.
Consumer
Shifts Towards Sustainability and Ethical Sourcing
As global awareness of environmental
sustainability and ethical sourcing practices grows, Indian consumers are
increasingly prioritizing brands that demonstrate commitment to these values.
This shift in consumer preferences poses a challenge for traditional garment
manufacturers who may not have implemented sustainable practices or transparent
supply chains.
Brands are under pressure to adopt
sustainable manufacturing processes, reduce carbon footprints, and implement
ethical sourcing practices across their supply chains. This transition requires
significant investments in technology, infrastructure, and workforce training
to achieve compliance with international standards and certifications.
Moreover, communicating these
sustainability efforts effectively to consumers and gaining their trust
requires transparent reporting and credible certifications. Brands that fail to
meet these expectations risk losing market share to competitors who prioritize
environmental stewardship and social responsibility.
Key Market Trends
Rise
of Sustainable Fashion
One of the prominent trends in the India
Readymade Garments Market is the growing demand for sustainable fashion.
Increasing awareness among consumers about environmental sustainability,
ethical sourcing, and the impact of fashion on ecosystems has led to a shift
towards eco-friendly clothing options.
Brands and retailers are responding by
adopting sustainable practices throughout their supply chains, including using
organic and recycled materials, reducing water and energy consumption in
manufacturing processes, and implementing fair trade practices. This trend is
not only driven by consumer preferences but also by regulatory pressures and
international sustainability standards that companies must adhere to.
Moreover, there is a rising trend of
upcycling and recycling old garments to create new fashion pieces, promoting
circular economy principles within the industry. Brands that embrace
sustainability as a core value are gaining traction among environmentally
conscious consumers, thereby influencing market trends and encouraging
industry-wide adoption of greener practices.
Digital
Transformation and E-Commerce Growth
The digital transformation of the retail
landscape has significantly impacted the India Readymade Garments Market,
accelerating the growth of e-commerce platforms and online shopping. Increasing
internet penetration, smartphone usage, and digital literacy among Indian
consumers have made online shopping a preferred mode of purchasing clothing.
E-commerce platforms such as Amazon,
Flipkart, Myntra, and Ajio have capitalized on this trend by offering a wide
range of readymade garments, personalized shopping experiences, and convenient
delivery options. These platforms leverage data analytics and artificial
intelligence to recommend products based on consumer preferences, enhance
customer engagement, and optimize inventory management.
Furthermore, social media platforms like
Instagram and Facebook play a crucial role in shaping fashion trends and
driving consumer demand for new styles. Influencers and fashion bloggers
collaborate with brands to showcase their products, create buzz around seasonal
collections, and influence purchasing decisions among their followers.
Preference
for Versatile and Functional Clothing
There is a growing preference among
Indian consumers for versatile and functional clothing that offers comfort,
durability, and multi-purpose use. This trend is influenced by changing
lifestyles, increased focus on fitness and wellness, and the adoption of casual
dress codes in professional settings.
Athleisure wear, which combines athletic
and leisurewear characteristics, has gained popularity among urban millennials
and Gen Z consumers who seek clothing that can seamlessly transition from gym
sessions to casual outings. Brands are expanding their athleisure collections
to cater to this demand, incorporating moisture-wicking fabrics, ergonomic
designs, and fashionable silhouettes.
Similarly, there is a trend towards
gender-neutral fashion and unisex clothing lines that appeal to a diverse range
of consumers. This inclusivity in design reflects changing societal norms and
preferences for clothing that transcends traditional gender stereotypes.
Localization
and Regional Preferences
The India Readymade Garments Market is
characterized by diverse regional preferences and cultural influences that
shape consumer buying behaviors. Different states and regions within India have
distinct preferences for fabrics, colors, patterns, and styles based on local
traditions, festivals, and climates.
Brands and retailers are increasingly
adopting a localized approach to product assortment and marketing strategies to
resonate with regional sensibilities. This includes offering region-specific
collections, collaborating with local artisans and weavers, and incorporating
traditional motifs and craftsmanship into contemporary designs.
For example, during festive seasons like
Diwali and Eid, there is a surge in demand for ethnic wear such as sarees,
salwar kameez, and kurta-pajamas across North India, while South India may
prefer silk sarees and traditional drapes. Understanding these regional nuances
allows brands to effectively target and engage with diverse consumer segments
across the country.
Segmental Insights
Type Insights
Kid's wear stands out as the
fastest-growing segment in the India Readymade Garments Market, driven by
several key factors that cater specifically to the burgeoning demand for
children's clothing. This segment benefits from India's demographic dividend, characterized
by a young population and increasing disposable incomes among parents willing
to spend on fashionable and functional clothing for their children.
The growth in nuclear families,
dual-income households, and changing lifestyle patterns has propelled the
demand for kid's wear, ranging from everyday casuals to formal attire and
occasion-specific outfits. Parents are increasingly prioritizing quality, comfort,
and style when purchasing clothing for their children, influencing their buying
decisions across both offline retail outlets and online platforms.
Moreover, the rise of social media and
digital marketing has amplified awareness and accessibility to trendy and
age-appropriate fashion choices for kids. Brands and retailers are responding
with diverse collections that blend durability, safety standards, and
attractive designs to meet the preferences of both children and their parents.
The kid's wear segment is also
benefiting from innovations in fabric technology and sustainable practices, ensuring
that garments are not only fashionable but also environmentally friendly and
safe for young wearers. With these factors driving growth, the kid's wear
market in India continues to expand rapidly, presenting significant
opportunities for brands to innovate, diversify their offerings, and capture a
larger share of this dynamic and evolving market.
Distribution
Channel Insights
The online segment is
the fastest-growing segment in the India Readymade Garments Market, driven by
increasing internet penetration, smartphone adoption, and shifting consumer
preferences towards convenience and digital shopping experiences. E-commerce
platforms such as Amazon, Flipkart, Myntra, and Ajio have capitalized on this
trend by offering a vast array of readymade garments, from everyday wear to
high-end fashion, accessible at the click of a button.
Advantages such as
extensive product variety, competitive pricing, and doorstep delivery options
have attracted a wide demographic of consumers across urban and rural areas.
The convenience of browsing through multiple brands, comparing prices, reading
customer reviews, and accessing exclusive discounts has significantly
influenced purchasing decisions, particularly among tech-savvy millennials and
Gen Z consumers.
Furthermore,
advancements in logistics and payment gateways have streamlined the online
shopping experience, ensuring faster delivery times and secure transactions.
The COVID-19 pandemic further accelerated the shift towards online shopping as
consumers sought safer alternatives to traditional retail amid lockdowns and
social distancing measures. As a result, the online segment continues to expand
rapidly, transforming the retail landscape of the India Readymade Garments
Market and presenting lucrative opportunities for brands to reach a broader
audience and drive sales growth in the digital era.
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Regional Insights
North India emerges as the dominating
region in the India Readymade Garments Market, driven by its economic
significance, cultural diversity, and fashion-forward consumer base. Major
cities such as Delhi, Jaipur, Chandigarh, and Lucknow serve as key hubs for
garment manufacturing, wholesale distribution, and retail sales, influencing
market trends and consumer preferences across the country.
The region's strategic location and
infrastructure facilities facilitate efficient supply chain management and
logistics, supporting the seamless movement of raw materials and finished
products within India and globally. Delhi, in particular, stands out as a
prominent center for fashion and textile trade, hosting numerous textile
markets and garment clusters that cater to both domestic and international
markets.
Cultural diversity also plays a crucial
role in shaping the dominance of North India in the readymade garments sector.
Traditional attire such as sarees, salwar kameez, and ethnic wear remains
popular among consumers in states like Punjab, Haryana, Uttar Pradesh, and
Rajasthan, influencing market demand and seasonal trends.
Furthermore, North India's robust retail
ecosystem, comprising of shopping malls, retail chains, and bustling markets,
enhances accessibility to a wide range of readymade garments for diverse
consumer segments. This combination of economic vitality, cultural richness,
and retail infrastructure solidifies North India's position as a leading
contributor to the growth and dynamism of the India Readymade Garments Market.
Recent Developments
- In March 2024, Gap expanded its retail
presence in India by launching its men's, women's, and kids' collections at its
30th exclusive brand store in Mumbai. Recently, the brand, operated by Reliance
Retail, also inaugurated a new physical location in Pune.
- In December 2023, Les Petits, a fashion
brand, launched a new kidswear in India to expand its offers in the children's
fashion segment. This strategic strategy seeks to suit Indian consumers'
evolving preferences for fashionable and high-quality children's clothes.
Key Market Players
- H&M Hennes & Mauritz Retail Private Limited
- Aditya Birla Fashion and Retail Limited
- Arvind Lifestyle Brands Limited
- Fabindia Limited
- Benetton India Pvt. Ltd.
- BIBA Fashion Limited
- Raymond Limited
- Future Lifestyle Fashions Ltd.
- Levi Strauss (India) Private Limited
- Shoppers Stop Limited
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By Type
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By Material
|
By Distribution
Channel
|
By Region
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- Kid’s Wear
- Men’s Wear
- Women’s Wear
|
- Cotton
- Wool
- Silk
- Leather
- Synthetic Fibers
- Others
|
|
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Report Scope:
In this report, the India Readymade Garments Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Readymade Garments Market,
By Type:
o Kid’s Wear
o Men’s Wear
o Women’s Wear
- India Readymade Garments Market,
By Material:
o Cotton
o Wool
o Silk
o Leather
o Synthetic Fibers
o Others
- India Readymade Garments Market,
By Distribution Channel:
o Online
o Offline
- India Readymade Garments Market,
By Region:
o North
o South
o East
o West
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the India Readymade Garments Market.
Available Customizations:
India Readymade Garments Market report with the
given market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Readymade
Garments Market is an upcoming report to be released soon. If you wish an early
delivery of this report or want to confirm the date of release, please contact
us at [email protected]