India’s Booming Wedding Market Drives Fashion and Luxury Goods Business
- ByStartupStory | April 5, 2023
Weddings are driving the fashion and luxury goods business, with India continuing to be the major economy with the fastest rate of growth and consumer sentiment at an all-time high. Imran Amed, the founder and CEO of the international fashion media company The Business of Fashion, claimed in an interview that India has become one of the strongest fashion markets in the world and that the global value of the fashion industry is estimated to be $2.5 trillion.
Luxury fashion is at the very top of the $2.5 trillion global fashion sector, which is split into several distinct categories. Over the past few years, this market has experienced exceptional acceleration. This is a reflection of the richer sectors of our society, who were stranded at home during the lockdown and saved a lot of money by forgoing vacation and other luxuries. Consumers began making purchases online, frequently interacting with retailers of high-end items, and as a result, there has been tremendous growth in recent years. The economy has undoubtedly transitioned into a new stage.
Exist any other luxury markets that are successful globally?
Yes, the luxury at the base of the pyramid is thriving. People are much more aware of where and how they spend their money, which is one of the reasons this is happening. If they are purchasing it, it is in the clearance section. The middle of the market is having the most difficulty.
Has the state of the economy had any effect on the consumption of luxury goods?
The future of the global economy is now much less certain, and a possible recession in the US and Europe is being discussed. Despite the fact that the recession has not yet materialised, I believe consumers are being a little more cautious.
Is India included in that?
No, India has the fastest-growing major economy, and the country is quite upbeat. The Indian consumer continues to be optimistic. We’re talking about a market worth more than $50 billion annually if we include everything related to the wedding industry when defining luxury and fashion in India.
Is it a result of China’s declining luxury consumption?
Businesses are now looking to India and the Middle East for development opportunities as China has somewhat cooled. The latest changes to the regulations governing covid limitations have also increased market confidence in China. Because China has been so difficult over the past year or so, executives are hoping that the industry will rebound.
Businesses frequently contrast China and India’s economies, but are their consumer markets comparable? What do you think?
The two markets’ dynamics are very dissimilar. Compared to China or anywhere else, India has a much stronger sense of tradition and its own brand of luxury. If one wanders the streets of Shanghai or Beijing in China, they will mostly see people dressed in Western attire. Rarely are traditional Chinese garments worn. In contrast, it is more of a “fusion” way of life in India. Indian consumers interact very differently with foreign luxury brands.
Which luxury brands are successful in India?
The brands that are most successful are those that are attempting to comprehend the occasions and times in the lives of Indian consumers that they may fit into. The next ten years will be intriguing for the Indian market as there are still many development potential that have not yet come to pass. It would be quite intriguing to observe how it evolves moving forward as the major economy with the quickest rate of growth, with buoyancy and vibrancy in the market even in the face of economic challenges. But, given that wearing Western clothing there has largely become the norm, the share opportunity in China is significantly larger.
The latest buzzword in fashion is sustainability, but are people actually living it or are they just talking about it?
The BoF Sustainability Index is an annual analysis that we conduct, and last year we graded 30 publicly traded companies, as well as luxury sportswear and fast fashion. And based on our analysis, we would conclude that while many businesses claim to be sustainable, they do not do enough to actually change their practices—be they related to water and chemicals, commissions or worker rights—to qualify as such. And the fact is, every single thing we produce has an effect in some way. So a sustainable and impact-free product is unparalleled. Every product we produce has an effect. So, the industry’s current focus is on how to develop fewer, better, more durable products with a smaller impact. The major luxury brands are now concentrating on producing goods that are more valuable in smaller quantities. That is now their stated objective: producing fewer items that are more expensive and have a longer lifespan.
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