A recent report by Bain & Company and Myntra predicts that India’s online lifestyle market will expand significantly, from the current $16-17 billion to reach $40-45 billion by 2028. This growth will be driven by increasing online penetration, which is expected to rise from 13% to 18-22%, primarily driven by demand from tier 2 and above cities.
Myntra CEO Nandita Sinha highlighted the untapped potential of the online fashion sector, saying it is “just scratching the surface.” She stressed the importance of attracting new customers and encouraging frequent purchases across categories, suggesting there is a lot of room for growth in the market.
Currently, there are around 175 million online lifestyle shoppers in India, who purchase around 6-7 times per year. Gen-Z shoppers, especially those born between 1997 and 2012, are leading this trend, purchasing 8-9 times per year and preferring new and emerging brands. These brands currently account for 26-27 percent of their shopping basket.
Global brands are also eyeing the Indian market, with 90% of the world’s top 50 brands already present in India. More than half of these brands have annual revenues of over US$30 million in India, and 60% of them have launched in India through online platforms.
Shyam Unnikrishnan, partner at Bain & Company, highlighted the importance of a relevant and value-sensitive assortment for global brands, with efficient sourcing and strong brand-building efforts, especially through social media, being crucial.
Both executives stressed the importance of an omnichannel strategy, where online and offline presence complement each other: offline stores provide credibility and recognition, while online platforms provide wider access to fashion trends and a wider customer reach.
This symbiotic relationship is crucial to the continued expansion of India’s online lifestyle market.
