India’s online fashion and lifestyle market is set to grow from $16-17 billion to $40-45 billion by 2028, according to a Bain & Company and Myntra report titled “Decoding India’s Online Fashion and Lifestyle Shopping Trends”. The report, titled “Decoding India’s Online Fashion and Lifestyle Shopping Trends,” provides a comprehensive overview of the evolving e-lifestyle landscape in India.
The overall lifestyle market in India, valued at $130 billion in 2023, is expected to grow at a CAGR of 10-12% to reach $210 billion by 2028. E-commerce penetration in the lifestyle sector is projected to increase from the current 13% to 18-22% by 2028, meaning one in five dollars spent on lifestyle will be online.
Currently, over 175 million Indians shop online for lifestyle products, making an average of 6-7 transactions per year. Gen-Z shoppers, approximately 60 million strong, are driving growth with a higher purchase frequency of 8-9 times annually, compared to 5-6 times for non-Gen-Z shoppers.
Fashion leads the e-lifestyle market with a 75-80% share, followed by beauty and personal care. The online trend-first market is projected to grow from $0.5 billion to $4-5 billion by 2028, with online penetration rising from 30-35% to 50-55%.
The report notes that 90% of the top 50 global lifestyle brands are active in India, with half of them generating over $30 million in revenue.
Several factors are driving this growth, including easing inflationary pressures, rising incomes, a surge of fashion-forward Gen-Z shoppers, and a shift towards organized retail. Additionally, technology advancements, such as AI-driven personalisation, virtual try-ons, and voice-assisted shopping, are enhancing the online shopping experience.
Manan Bhasin, Partner at Bain & Company, provided an insight into India’s evolving apparel sourcing landscape: “India’s apparel sourcing landscape has matured, with new manufacturing clusters beyond Surat and Tirupur emerging across the length and breadth of the country. Share of India sourcing has increased steadily to 20-30% for some leading global brands. While there is a lot more scope for improvement, enhanced textile manufacturing capabilities, tighter brand supplier relationships and greater technology enablement including ERP systems, AI-based trend-spotting all signal the evolution of India’s apparel manufacturing ecosystem,” Bhasin said.
The report highlights the increasing role of social media in driving discovery and purchases, with social platforms contributing 20% of the incremental traffic for the top 30 D2C brands over the past two years.
For global brands entering the Indian market, the report outlines a winning playbook that includes offering a differentiated customer proposition, efficient sourcing, strategic marketing, and leveraging partnerships for India-specific growth.
As the e-lifestyle market in India continues to evolve, the report suggests that brands and platforms must work closely together to deliver the best proposition to the Indian consumer, capitalising on the country’s digital transformation and changing consumer preferences.