For ultra-value brands like Zudio, supply chain agility is crucial. These brands can launch low-priced products profitably by operating on a large scale, which helps offset certain costs. Consequently, building a scalable brand in this segment will necessitate substantial investments, likely spearheaded by larger conglomerates, as per Redseer.
For premium brands such as Zara, brand recall and customer loyalty serve as their greatest strengths. As India’s premiumisation trend gains momentum among affluent consumers, this segment is expected to attract a healthy influx of both global and Indian designer brands.
The mid-value segment, featuring brands like H&M and Snitch, is witnessing a high proliferation of digital-first brands. With low entry barriers, this segment attracts experimental customers, making it highly competitive. Brands with unique and value-adding propositions are likely to resonate strongly with consumers.
Regardless of their segment, fast fashion brands in India share a common core driver: the ability to identify and capitalise on new and viral fashion trends.
In men's fast fashion for FY24, trends included oversized T-shirts, graphic tees, printed shirts, trousers, and cargo pants. The next major trend is expected to be co-ords and summer/all-time jackets. For women's fast fashion, dresses, wide-legged trousers, and co-ords dominated the buying choices. The next big disruptors in this category are anticipated to be occasional wear and shapewear.
