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Luxury and Fashion Our global industry experts explore the key trends shaping consumer preferences that drive fashion and luxury, using timely insights to stay one step ahead of the latest innovations and business strategies.

The Fashion Industry and Consumer Spending Trends

9/27/2016
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Young consumers have emerged as the major group influencing sales of apparel, footwear, watches and eyewear. The rise in fashion consciousness is a key trend among this group, resulting in consumer behaviour when choosing product becoming more sophisticated.

The apparel and footwear are key industries around the world and it follows the same trend in India. More specifically, apparel is a key component of the Indian fashion industry as it contributes over 43% of all fashion* retail value sales.

Fashion Industry Performance, 2010/2015

fashion-industry-performance

Affluent urban Indian consumers are increasingly focusing on their looks, a trend driven by rising disposable incomes, corporate jobs, and influence of Bollywood and Hollywood. Some of the consumers are also well travelled and are aware of international trends. These affluent men are willing to splurge money and pamper themselves with premium fashion products.

avg-income-by-age

Currently, the average Indian consumer is in their mid-20s and this will influence sales, new product development and marketing of products within the fashion industry. Changing societal norms also brings with it a rising number of working women in Indian society. With financial independence and freedom to make their own decisions, this consumer base will be key for the growth of fashion as an industry in India. Increasing household disposable income will be an added catalyst for the growth of value added products in the fashion space. The aspirations of Indian consumers will enable the shift from “need” to “want” and the increase in the share of wallet for discretionary spending will empower consumers to spend more on fashion.

consumer-expenditure-by-type

*Fashion includes apparel, footwear, eyewear, jewellery, watches and other personal accessories

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