The Indian lifestyle market is projected to grow at a compound annual growth rate (CAGR) of 10-12% over the next five years, reaching USD 210 billion by 2028, according to a joint report by Bain & Company and Myntra. The organized segment will play a crucial role in this growth, with the fashion sector accounting for nearly 80% of the market, while beauty and personal care (BPC) will also experience a 10-12% CAGR.
The report anticipates that India’s e-lifestyle market will expand from USD 16-17 billion in 2023 to USD 40-45 billion by 2028. This growth will be driven by easing short-term inflationary pressures and structural demand shifts, such as rising incomes, the growth of a fashion-forward, digital-native Gen-Z shopper base, and an increased demand for organized and branded products.
Further contributing to this growth are superior customer value propositions, including trendy selections, faster delivery, easier returns, tech-enabled purchase journeys, social media-powered discovery, and omni-channel access. These factors will help bridge the penetration gap with global markets like the US, China, and Germany, where e-lifestyle penetration stands at over 35%. In India, lifestyle penetration is expected to increase from 13% to 18-22% between 2023 and 2028.
Currently, the e-lifestyle market in India is dominated by fashion, which comprises 75% of the market. Accessories and women’s apparel are expected to grow faster than other fashion segments. BPC, which had a 16% penetration in 2023, is also projected to grow slightly faster over the next five years.
The report highlights the rise of the trend-first fashion market in India, driven by online platforms offering a large assortment and faster refresh cycles. This market is expected to grow eightfold, reaching USD 4-5 billion by 2028, with the online share of trend-first fashion increasing from the current 30-35% to 50-55%.
In 2023, over 175 million customers in India shopped for lifestyle products online, with an average of 6-7 transactions per year. Lifestyle products serve as a key gateway category for first-time e-commerce shoppers, accounting for 40-45% of their initial purchases. These online shoppers are visiting more platforms and doing so more frequently.
India remains a core market for top global brands, with 90% of the top 50 global brands already present in the country. Half of these brands generate over USD 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 past 12 months, spanning scale, niche, luxury, and new-age brands across fashion and beauty.
(ANI)
