India’s burgeoning lifestyle market is set to witness significant growth, reaching $210 billion by 2028, largely led by the organized segment, according to a report by Bain & Company and Myntra.
The lifestyle market, currently valued at $130 billion, is set to grow at a compound annual growth rate (CAGR) of 10 per cent–12 per cent, according to the report titled ‘E-Styling India: Decoding India’s Online Fashion and Lifestyle Shopping Trends’.
The report highlights that fashion constitutes approximately 80 per cent of the current market, with beauty and personal care (BPC) making up the remaining.
Notably, the e-lifestyle segment, dominated by fashion, comprising 75 per cent of the market, and accessories and women’s apparel are expected to grow faster than other fashion segments.
The e-lifestyle market in India is poised to grow from $16–$17 billion in 2023 to $40–$45 billion by 2028; enabled by the easing of short-term inflationary pressures, combined with structural and favourable demand shifts, such as a rise in income, growth of fashion-forward, digital native Gen-Z shopper base as well as increase in demand for organized/ branded products.
Beauty and personal care (BPC) has become more mainstream with 16 per cent penetration in 2023 and is expected to grow slightly faster over the next five years.
Despite this rapid growth, India’s online lifestyle market still has considerable room for penetration. Currently, only about 13 per cent of the lifestyle market is online, compared to 35 per cent+ in more mature markets like the US, China, and Germany. By 2028, this figure is projected to increase to 18 per cent–22 per cent.
“India’s e-lifestyle market has come of age in the last few years, with a diverse shopper base – 2 in 3 online shoppers are from beyond top 50 cities, 1 in 2 are from non-affluent segments, and 1 in 3 are Gen-Z. There still exists massive penetration headroom. 1 in 5 dollars spent on lifestyle will be online”, said Shyam Unnikrishnan, Partner at Bain & Company.
The report sheds light on the evolving demographics of online shoppers in India. Two-thirds of these shoppers hail from beyond the top 50 cities, with half belonging to non-affluent segments.
Furthermore, one-third of online shoppers are Gen Z, a group known for their fashion-forward and digital-native behaviour. This demographic alone accounts for 25 per cent of the e-lifestyle market, contributing $4 billion in gross merchandise value (GMV).
One of the standout trends identified is the rapid rise of the trend-first fashion market. This segment, characterized by a large assortment and faster refresh cycles, is expected to grow eightfold, reaching $4–$5 billion by 2028. Consequently, the online share of trend-first fashion is projected to increase from the current 30 per cent–35 per cent to 50 per cent–55 per cent.
- Also read: India’s booming D2C beauty market
The report also emphasizes the pivotal role of lifestyle products as a gateway category for first-time e-commerce shoppers. In 2023, over 175 million customers shopped for lifestyle products online, with an average of 6–7 transactions per year. Notably, 40 per cent–45 per cent of these shoppers made lifestyle products their initial online purchase.
India has been a core market for top global brands—90 per cent of the top 50 global brands are already present in India, and half of these brands have over $30 million in revenue from India operations.
Over the past year, more than 60 global brands have launched or planned launches, spanning scale, niche, luxury, and new-age segments.
“Three in five global brands have entered India via the online channel in the past year and we are proud to have contributed to the launch of some of these global brands in the country. A well-rounded and high-decibel launch, facilitating easier discovery, access to intel about the needs of Indian fashion-forward consumers and Myntra’s reach to 99 per cent of serviceable pin codes are among the key factors enabling the scale-up of the global brands in the sub-continent”, said Nandita Sinha, CEO, Myntra.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.