Fashion Retail Scenario in India: Trends and Market Dynamics

The sound growth of the fashion products market, driven by the 8-to-9% GDP growth and positive investment sentiment, looks like a thing of the past. The growth story of one of the largest emerging economies, India, has required severe revision. A growth rate under 5%, coupled with double-digit inflation, has dampened consumer demand for fashion items. As a result, the Indian fashion products consumer has become a cautious spender; demanding value for the money spent. In many cases, the Indian middle class has started trading down by shifting to either products available at a lower price-range or to lowering purchase volumes if within the same price range. The recent inflation in food and vegetables’ prices has added to the woes of the Indian consumer. Food being an irreplaceable item has eaten into the share of non-food items in recent years.