As disposable incomes rise amid overall economic growth, India’s lifestyle market is expected to grow at a CAGR of 10-12 per cent to reach $210 billion by 2028, according to a report.
It is currently valued at $130 billion in 2023, stated the report by Bain & Company and Myntra that provides a comprehensive overview of the evolving e-lifestyle landscape in the country.
It showed that the country’s online fashion and lifestyle market will grow from $16-17 billion to $40-45 billion by 2028.
The report added that the penetration of e-commerce in the lifestyle sector will increase from the current 13 per cent to 18-22 per cent by 2028. This means about one in five dollars spent on lifestyle will be online.
Currently, more than 175 million Indians shop online for lifestyle products and make an average of 6-7 transactions per year.
The report noted that Gen-Z shoppers, about 60 million, are driving the online shopping landscape.
Unlike the non-Gen-Z category, they have a higher purchase frequency of 8-9 times per year.
Fashion rules the e-lifestyle market with a 75-80 per cent share, followed by beauty and personal care.
Further, the report showed that of the top 50 global lifestyle brands, 90 per cent are active in India. And half of these generate more than $30 million in revenue.
Easing inflationary pressures, rising incomes, a surge of fashion-forward Gen-Z shoppers, and a shift towards organised retail are some factors driving this growth. In addition, technology advancements, such as AI-driven personalisation, virtual try-ons, and voice-assisted shopping, are also enhancing the online shopping experience.
Manan Bhasin, Partner at Bain & Company, noted that India’s apparel sourcing landscape has evolved “beyond Surat and Tirupur”. The new manufacturing clusters have “emerged across the length and breadth of the country”.
Moreover, the “share of India sourcing has increased steadily to 20-30 per cent for some leading global brands,” Bhasin added.
© 2024 IANS. All rights reserved.