India’s Lifestyle Market to Reach $210 Billion by 2028
Report by Bain & Company and Myntra
A new report by Bain & Company and Myntra predicts that the Indian lifestyle market will grow at a 10-12% Compound Annual Growth Rate (CAGR) to reach $210 billion over the next five years. The fashion segment will play a major role, making up 80% of the market, while beauty and personal care (BPC) will also see significant growth.
The report anticipates that India’s e-lifestyle market will expand from $16-17 billion in 2023 to $40-45 billion by 2028. This growth will be driven by factors such as rising incomes, the increasing number of fashion-forward Gen-Z shoppers, and a higher demand for organized and branded products.
Additional factors contributing to this growth include better customer value propositions like trendy selections, faster delivery, easier returns, and a tech-enabled purchase journey. Social media and omni-access will also play a role in bridging the gap between India and global markets like the US, China, and Germany.
Currently, e-lifestyle is dominated by fashion, which makes up 75% of the market. Accessories and women’s apparel are expected to grow faster than other segments. BPC has become more mainstream, with 16% penetration in 2023, and is expected to grow slightly faster over the next five years.
The report also highlights the rise of the trend-first fashion market in India, driven by online platforms. This market is expected to grow eightfold, reaching $4-5 billion by 2028. Consequently, the online share of trend-first fashion is projected to increase to 50-55%, up from the current 30-35%.
In 2023, more than 175 million customers in India shopped for lifestyle products online, with an average of 6-7 transactions per year. For 40-45% of first-time e-commerce shoppers, lifestyle products are their first purchase, making it a key gateway category for e-retail.
India is a core market for top global brands, with 90% of the top 50 global brands already present in the country. Half of these brands have over $30 million in revenue from their Indian operations. The confidence in India as a key lifestyle market is further underscored by the launch or planned launch of over 60 global brands in the last 12 months, spanning scale, niche, luxury, and new-age brands across fashion and beauty.
Doubts Revealed
Bain & Company -: Bain & Company is a big company that helps other businesses make smart decisions. They study markets and give advice on how to grow.
Myntra -: Myntra is a popular online shopping website in India where people can buy clothes, shoes, and other fashion items.
CAGR -: CAGR stands for Compound Annual Growth Rate. It means how much something grows every year over a period of time.
$210 billion -: This is a very large amount of money. It means 210,000 crores in Indian rupees.
Fashion segment -: This means the part of the market that includes clothes, shoes, and accessories.
E-lifestyle -: E-lifestyle means buying lifestyle products like clothes and accessories online.
Gen-Z shoppers -: Gen-Z shoppers are young people born between 1997 and 2012. They like to shop online and follow the latest trends.
Branded products -: Branded products are items made by well-known companies. They are usually of good quality and more expensive.
Online trend-first fashion market -: This means buying the latest fashion trends online before they are available in stores.
