How Budget Fast Fashion is Taking Small-Town India by Storm
Value-conscious yet aspirational Indians are fueling the surge in branded budget apparel.
– Alka, a geriatric care worker in her late 50s, browses a three-story Reliance Trends outlet in Sangli, western India. She is on the hunt for a baby pink kurta adorned with a dull gold paisley motif, inspired by a colleague’s outfit. “I loved it so much; I wanted to buy one for my daughter,” she shares.
– The store offers a diverse range of trendy apparel, from quirky printed t-shirts and faded jeans to stylish formal wear for both men and women. It also features in-house labels that mix Indian and fusion styles, alongside makeup kits, sneakers, handbags, and costume jewelry.
– For Alka, shopping in the air-conditioned space, with trial rooms and staff assistance, is a refreshing change from her usual white-label bargain hunting in street-side bazaars. Budget brands like Reliance Trends, led by Isha Ambani, and Tata’s Zudio are providing a superior shopping experience, often at the same price points as local markets. Most items range from $4 (£2.90) to $15.
– “The contemporary designs and an increasing desire to wear branded clothes are significant factors,” says Pankaj Kumar, a retail analyst at Kotak Securities.
The Rise of Budget Fast Fashion in India
This boom in value-driven and aspirational consumers, particularly in smaller towns, is propelling remarkable growth in India’s organized fast-fashion industry. Major brands like Max, Vishaal Mega Mart, Reliance Trends, and Zudio are leading the charge.
– Zudio’s growth has outpaced global giants like Zara and H&M. While Zudio began in 2018 with just seven stores generating $12 million in revenue, it anticipates reaching 765 stores and over $1 billion in revenue by mid-2025. Westside, once a more prominent player with 125 stores and $220 million in revenue, has struggled to keep pace.
– “It’s a classic bottom-of-the-pyramid strategy—go big by going mass,” explains Kotak Securities, highlighting the importance of pricing. “Even affordable fashion is a luxury in India’s tier-2 and tier-3 towns.”
Understanding Consumer Spending Shifts
Amid a sluggish job market and stagnant wages, why are consumers increasing spending at branded stores?
– “It’s a clear wallet-shift,” explains Kushal Bhatnagar from Redseer Strategy Consultants. “Consumers aren’t buying more but are transitioning their purchases from local shops to branded outlets.”
– Budget brands are aggressively penetrating deeper into India’s locales. Zudio and Max have introduced a “trendification” of affordable fashion, appealing to Gen-Z and young millennials by tapping into styles from Paris and Milan.
– A pivotal partnership between Trent (Zudio’s parent company) and Zara has allowed Zudio to adopt a similar fast-fashion model, achieving a remarkable inventory turnover of just 15 days compared to the 45-60 days typical of its rivals. Kumar stresses, “In fashion, speed is everything.”
Impact on Local Retail and Market Dynamics
As fast-fashion brands expand, local mom-and-pop stores feel the pressure, compounded by rising e-commerce platforms like Meesho, which reports a year-on-year growth of 35-40%.
– “As GDP per capita rises, branded goods and online shopping become increasingly integral to retail,” Bhatnagar notes. The challenge now lies in achieving a “consumption uplift” that increases the overall market size.
– India’s apparel market, presently estimated between $70 billion to $100 billion, lags behind. “We underspend on apparel, with per-capita expenditures significantly lower than in China, the US, or Indonesia. Ideally, this market should grow at about 12-15%, yet it has lingered below 10% in recent years.”
Sustainability Concerns Amid Growth
Despite the rapid ascent of fast fashion, environmental concerns loom large. The textile industry ranks as the third-largest contributor to dry municipal solid waste in India, following plastics and paper, with recycling rates under 25%.
– Deloitte indicates that less than 1% of used clothing finds its way back into new garments or recycled fibers globally. While some brands are integrating sustainability into their supply chains, comprehensive change remains an elusive goal.
For now, style and savings are winning over sustainability for many small-town Indians as they embrace the budget fast fashion movement.