Home / Knowledge / News / Fashion / McKinsey sees India's ascent in fashion industry in 2019

McKinsey sees India's ascent in fashion industry in 2019

13
Feb '19
India’s ascent is one of ten trends the fashion industry should watch in 2019, according to McKinsey’s latest State of Fashion report, prepared in partnership with the Business of Fashion (BoF). India is increasingly becoming a focal point for the fashion industry, reflecting a rapidly growing middle class and an increasingly powerful manufacturing sector, it says.

These forces, together with strong economic fundamentals and growing tech savvy, make India too important for international brands to ignore, a press release from the company said citing the report.

India’s apparel market will be worth $59.3 billion in 2022, making it the sixth largest in the world, comparable to the United Kingdom’s ($65 billion) and Germany’s ($63.1 billion), according to data from McKinsey’s FashionScope.

The aggregate income of the addressable population (individuals with more than $9,500 in annual income) is expected to triple between now and 2025.

Economic expansion is happening across Asia, but McKinsey expects 2019 to be the year when India takes centre stage. The country is being propelled by strong macroeconomic tailwinds, and its gross domestic product (GDP) is predicted to grow 8 per cent a year between 2018 and 2022, the report said.

India’s middle class is forecast to expand by 1.4 percent a year over the same period, outpacing China, Mexico, and Brazil. As a result, India is set to evolve from an increasingly important sourcing hub into one of the most attractive consumer markets outside the Western world, says the report.

More than 300 international fashion brands are expected to open stores in India in the next two years. But India remains a complex market that presents challenges as well as opportunities.

The apparel business is still largely unorganized, with formal retail accounting for just 35 per cent of sales in 2016. Its share is likely to reach around 45 per cent by 2025—still a relatively low proportion, says the report.

The growth in the apparel sector is also being driven by increasing tech savviness among consumers. E-commerce leaders are moving to solutions based on artificial intelligence. The supply side of the industry is equally robust, and the growth of textile and apparel exports is expected to accelerate, the report adds. (DS)

Fibre2Fashion News Desk – India


Interviews View All

Milind Khandwe, Hindoostan Innovation Centre

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Dinaz Madhukar, DLF Emporio and DLF Promenade

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Software Firms, Head honchos

Software Firms
Head honchos

Blockchain technology will shorten lead times

Verena Ruckh,

Verena Ruckh

Brückner Trockentechnik develops, manufactures and supplies textile...

Ravi Raj Desai,

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Simon Daplyn,

Simon Daplyn

Switzerland-based Sensient Imaging Technologies is a pioneer with a global ...

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search