India is the second largest clothing market in the world. The Indian fast fashion market is booming and brands like Forever 21, Mango, and H&M are taking over.
India’s massive secondhand market has a lot of potential for growth as well. Secondhand fashion stores are flourishing and hailing from all over India.
The market for secondhand fashion is booming in India, with resale and recycling accounting for nearly half of the total revenue.
Young consumers are a big part of the Indian fashion market, influencing trends and driving their resale value. The secondhand sector, which includes clothing resellers and dealers as well as consignment stores selling closeouts and discontinued lines by global brands, has experienced a 30% increase in value over the last five years. This growth is attributed to increased global awareness of sustainability along with an increased disposable income among GenZ consumers who want to buy quality while being thrifty.
The global market for secondhand fashion is expected to reach approximately $3 billion dollars in 2020, mostly due to the rise of online-based dealerships that resell closeout items to younger customers who themselves want designer clothes without paying designer prices.
The two generations differ in the way they think about how clothes should be produced. Millennials demand more quality, ethically-sourced, sustainable clothing and Generation Z doesn’t want to buy second hand either.
While price remains a significant incentive for Generation Z as it is for Millennials, these two environmentally aware generations also see it as a waste of money because of the amount of pollution that their clothes create.
In India, the luxury clothing brands have a niche market with less than 10% of the total market share. However, they are fast-fashion brands and their prices are affordable and their styles are updated every month.
The fashion brands in India is one of the hottest markets to invest in right now with high growth potential. With increasing urbanization, youth has become more conscious about their lifestyle and access to curated products that help them express themselves with style. The Indian retail sector is expected to grow at 8% CAGR over the next five years and further provide an opportunity for luxury brands.
The report forecasts that there will be increase in demand for buy second hand clothes which will further boost the fashion market growth in India due to increased availability of new items without spending huge amounts on them.