India hosts 90% of global lifestyle brands, says study

About 90% of global lifestyle brands are present in India, with about half of them generating revenues in excess of $30 million in the country, a joint study by consultant Bain and Co. and Myntra showed.

In the past year alone, more than 60 lifestyle brands across segments including big-scale ones, direct-to-consumer and luxury, have either launched or have planned to launch in the country, making India a big priority for their markets, according to the survey.

Most of the global brands in India have used the online route to grow in India, with three out of five firms entering the country using the online mode, the study said.

“Not only does online provide a large market for the brands to go and build their brands in, but also there is a lot of interplay of the omni channel benefits that brands get when they scale through the online-first model,” the survey pointed out.

Key trends

Analysts also noted two key trends that are defining how and what fashion is being brought into the country.

“Today the Indian consumer is very aspirational and, therefore, is seeking out global trends as and when they are becoming popular across the globe. Trends like Barbie core, corsets, sequins, high-waste and all of the global trends are actually becoming very popular in India and customers want them as soon as they are launched,” Myntra chief executive Nandita Sinha said.

Pointing to changing trends, Sinha said that Indian customers are today looking for a mix and match of indie and Western wear, while going back to their roots, especially during festive occasions and the wedding seasons.

Not only is the women’s market evolving and becoming global, she said that men are also becoming more and more fashionable and are willing to experiment with the new trends that are available, especially in the global market.

She pointed to products such as oversized T-shirts, crochet tops, Cuban collar shirts, and denim oversized jackets being adapted quickly by men, especially Gen Z consumers.

Market breadth

The report said the Indian online lifestyle market will scale from about $17 billion today to up to $45 billion by 2028, with the overall lifestyle market itself expected to soar to $210 billion in five years.

Fashion, especially apparel, constituted 80% of the Indian lifestyle market, while beauty and personal care sectors rounded out the remaining 20%, the study said

With a projected growth of 10-12%, the future for India’s lifestyle market will rely on factors including growing affluence and addition of millions of households into the upper middle- and high-income brackets within the next five years, according to the report.

“Lifestyle consumption will grow faster beyond the top 50 cities, with a rise in affluence as well as greater access to brands,” said Shyam Unnikrishnan, partner at Bain.

Despite the growth, there is still massive headroom for e-lifestyle penetration in India, according to Unnikrishnan.

Online shopping for lifestyle products is expected to surge, increasing from 13% today to 20% by 2028, owing to the growing influence of the tech-savvy and fashion-conscious Gen-Z, which account for one-third of the customer base.