India’s lifestyle market to hit USD 210 billion by 2028 with 22 pc online penetration

New Delhi [India], August 7 (ANI): The Indian lifestyle market is expected to grow at a 10 to 12 per cent CAGR to reach USD 210 billion over the next five years, according to a joint report by Bain & Company and Myntra.

The organised segment will play a significant role in the growth of the lifestyle market where the fashion segment will account for almost 80 per cent and the rest of beauty and personal care (BPC), is expected to grow at a 10 to 12 Compound Annual Growth Rate (CAGR), as per the report.

Anticipating the growth, the report anticipated that India’s e-lifestyle market will grow from USD 16 USD 17 billion in 2023 to USD 40- USD 45 billion in 2028.

Factors such as the easing of short-term inflationary pressures, combined with structural and favourable demand shifts, such as rises in income, the growth of fashion-forward, digital native Gen-Z shopper bases, and an increase in demand for organized and branded products will play a significant role in the growth of the lifestyle segment, as observed in the report.

Additional tailwinds come from superior customer value propositions of trendy selection, faster delivery, easier returns, a tech-enabled purchase journey, social media-powered discovery, and omni-access.

This will bridge the massive penetration headroom versus global markets such as the US, China, and Germany, which are at 35 per cent+ e-lifestyle penetration; as such lifestyle penetration in India will grow from 13 per cent to 18-22 per cent over 2023-28, as per the report.

Currently, e-lifestyle is dominated by fashion, comprising 75 per cent of the market, and accessories and women’s apparel are expected to grow faster than other fashion segments. Beauty and personal care (BPC) has become more mainstream, with 16 per cent penetration in 2023 and is expected to grow slightly faster over the next 5 years.

The report said that another prominent trend driven by online platforms is the rise of the trend-first fashion market in India.

With a large assortment and faster refresh cycles, this online trend-first market is expected to grow eightfold, reaching USD 4-5 billion by 2028. Consequently, the online share of trend-first fashion is projected to increase to 50-55 per cent, up from the current 30-35 per cent.

In 2023, more than 175 million customers across India shopped for lifestyle online, transacting 6-7 times annually on average. For 40-45 per cent of first-time e-commerce shoppers, lifestyle is their first purchase, thus becoming a key gateway category for e-retail. These online shoppers are visiting more platforms and visiting them more often, the report added.

India is a core market for top global brands–90 per cent of the top 50 global brands are already present in India, and half of these brands have over USD 30 million in revenue from India operations, as per the report. The confidence in India as a key lifestyle market is underscored by the launch or planned launch of over 60 global brands in the last 12 months. These span scale, niche, luxury, and new-age brands across fashion and beauty.