Decathlon, Guess Jeans and Sandro are just some of the fashion companies taking advantage of India’s growth opportunities. The South Asian country is becoming increasingly important for the fashion industry. According to statistics platform Statista, the Indian fashion market is expected to grow by 9.02 percent per year between 2025 and 2029. This growth creates great opportunities for fashion companies in India, a country that, in addition to financial benefits, also offers opportunities to promote a socially responsible fashion industry.
Young consumers
Above all, India’s demographics with a large number of young consumers make it an important market for fashion companies. According to the marketing agency WARC, Generation Alpha (born between 2010 and 2024) and their parents together form an influential consumer group. Generation Alpha is actively involved in influencing purchasing decisions within the family.
Additionally, Gen Alphas are digital pioneers who grew up with technology and social media. They prefer personalized, immersive and interactive experiences, which offers fashion companies the opportunity to develop innovative and digital strategies that meet their expectations.
Local skilled workers and cost efficiency
India has traditionally been known for its local skilled workers and cost efficiency. By producing in India, companies can reduce costs, reduce their environmental footprint and respond more quickly to the demands of the local market.
More and more fashion companies now seem to be increasing their investments in the country. This is also the case with French fashion giant Decathlon, which recently announced that it would provide 100 million euros for its growth plans in India over the next five years. The company also aims to produce 85 percent of its products locally in India by 2026.
The US fashion company Guess Jeans also recently announced that it wanted to invest in the South Asian country. In an official press release, Guess Jeans said the brand will enter the Indian market and benefit from the “local market knowledge and strong infrastructure” of Tata CLiQ, a subsidiary of Indian conglomerate Tata Group. India has made significant investments in recent years to improve its infrastructure, including ports, roads and logistics networks, according to a Reuters study.
Most recently, Parisian fashion house Sandro announced the opening of its first store in India in Mumbai in collaboration with Reliance Brands Limited. The 150 square meter boutique offers exclusive clothing and accessories for men and women. This move is part of a broader strategy to expand the brand in South Asia, with Reliance Brands, a subsidiary of Reliance Industries, as a partner given its successful experience in the region. Reliance Brands has partnerships with fashion brands such as Burberry, Coach and Tiffany & Co., expanding the presence of premium and luxury products in the Indian market through both brick-and-mortar stores and online sales.
CSR opportunities
Although India offers significant advantages for fashion companies due to its young population and improved local production capabilities, the country is also known for its poor working conditions, social inequality and corruption. Working in India is therefore associated with challenges, but also with opportunities for CSR (Corporate Social Responsibility), as O My Bag CEO and founder Paulien Wesselink explained in an interview with FashionUnited.
O My Bag has been consciously investing in India since its inception in 2011 with the aim of addressing these issues and contributing to positive change at social and economic levels. In addition, Wesselink stated that since 2020, the company has been paying a “living wage premium” to its manufacturing operations in India, which is above the minimum wage and enables families to actually earn a living.
“Brands often invest a lot of money in setting fair wages and working conditions. For companies that produce worldwide, this means that they have to adhere to different standards and legal minimum wages at each location. The UN (United Nations) and local authorities each set different standards, making it difficult to find a universal approach. That’s why we work with local NGOs (non-governmental organizations) to ensure that this bounty is used effectively. We also offer training on fair wage and payout systems so that factory owners can implement them effectively. This also includes training for local teams on the importance of a living wage and financial literacy so that workers learn to manage their income well and save for their families,” explains Wesselink.
This article previously appeared on FashionUnited.nl and was created using digital tools translated.
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