India Emerges as Key Growth Market for High Street Fashion Manufacturers: McKinsey Report

ENA Sectors 2024-11-18 17:05:01 New Delhi, Nov 18 (KNN) India is poised to become a major player in the global fashion industry as international brands shift their focus to Asian markets, driven by Chinas economic slowdown and evolving consumer trends. McKinsey & Companys latest report highlights the growing prominence of India as a manufacturing hub and a consumer market for fashion brands over the next five years. The report underscores that global fashion executives are increasingly eyeing Asian growth markets, particularly India, as a response to Chinas decelerating economic growth and changing consumer preferences. The return of international travel and shifting trade dynamics further complicate growth in China, prompting brands to explore alternatives in other parts of Asia. Regulatory incentives and investments in manufacturing capabilities in India are seen as key drivers of this shift. Indias apparel market, particularly in the mid-market segment, is projected to grow at 12 to 17 percent by 2025, significantly outpacing the global fashion markets expected low single-digit growth. McKinsey highlights that Indias economic growth, fuelled by its expanding middle class and digitisation, positions it to become the worlds third-largest consumer market by 2027. Despite challenges in quality control, where India recorded the highest percentage of apparel failures in 2023, the governments USD 2.5 billion investment in production-linked incentives and quality reforms is expected to address these issues. Foreign investment has surged threefold since 2019, further bolstering Indias appeal as a manufacturing and sourcing hub. India's burgeoning middle class, estimated at 430 million people—larger than the combined middle classes of the U.S. and Western Europe—will fuel demand for non-luxury fashion. Digitisation and a youthful demographic, with 66 percent of the population under 35, are driving the countrys growing fashion consumption. The luxury market is also set to grow, with Indias population of ultra-high-net-worth individuals expected to rise by 50 percent from 2023 to 2028. In addition to India, other emerging Asian markets like Japan are also highlighted as key opportunities in McKinseys report. (KNN Bureau) 39955 https://knnindia.co.in/news/newsdetails/sectors/india-emerges-as-key-growth-market-for-high-street-fashion-manufacturers-mckinsey-report 2024-11-18 17:05:01 knnindia.co.in India Emerges as Key Growth Market for High Street Fashion Manufacturers: McKinsey Report