The D2C fashion and lifestyle market is set to reach a remarkable milestone, with a projected value of $10 billion by FY28.

The Indian fashion and lifestyle market is in the midst of a transformative shift, with Direct-to-Consumer (D2C) brands emerging as the game-changers. According to a joint report by Bain & Company and TMRW, a house of brands within the Aditya Birla Group, the D2C fashion and lifestyle market is poised to become a $10 billion industry by FY28, a significant leap from its current value of $2.4 billion. This meteoric rise is being fueled by several factors, including a growing digital landscape and shifting consumer preferences.

A Thriving D2C Ecosystem:

The D2C fashion and lifestyle sector in India are experiencing remarkable annual growth at a rate of 35 percent, consistently chipping away at the market share traditionally held by unbranded products. The online fashion and lifestyle market itself has witnessed substantial expansion, ballooning from $4 billion in FY19 to a substantial $11 billion in FY23.

Evolving Categories:

This evolving market can be categorized into four primary segments: unbranded products, national brands, private labels, and the rising stars of the industry - digital disruptors or D2C companies.

Unbranded Products: Traditionally, unbranded fashion items held a significant 54 percent market share in FY19. However, as the market underwent a transformation towards greater organization, this share has decreased to 45 percent.

National Brands: National brands, exemplified by names like Louis Phillipe, have been making strides in this changing landscape, increasing their market share from 19 percent in FY19 to 22 percent in FY23.

Private Labels: Private labels, often associated with online platforms like Ajio (e.g., Avaasa), have also seen growth, surging from 9 percent in FY19 to 12 percent in FY23.

Digital Disruptors (D2C): D2C companies, such as BlueStone, have captured the attention of consumers and investors alike. They have witnessed substantial growth, increasing their market share from 18 percent in FY19 to 21 percent in FY23.

Driving Factors:

Several factors are contributing to the success of D2C fashion and lifestyle brands. The rapid expansion of e-commerce, increased digital penetration, and changing consumer preferences for quality, convenience, and personalized experiences have all played a pivotal role in shaping this burgeoning industry.

The D2C fashion and lifestyle market in India is not only rapidly expanding but also transforming the way consumers shop for apparel and lifestyle products. With D2C brands offering unique and tailored experiences, consumers are increasingly gravitating towards these options. As this segment continues to flourish, it presents exciting opportunities for entrepreneurs and investors in the ever-evolving landscape of Indian fashion and lifestyle.