While China's economic growth slows, international fashion brands are setting their sights on new Asian markets. India and Japan, with their unique strengths and growing economies, are poised to become major players in the global fashion scene.
India: The mid-market's new darling
India's rapid economic growth and burgeoning middle class are making it a focal point for fashion brands, particularly in the mid-market segment. With a projected growth rate of 12 to 17 percent in 2025, India's fashion market is set to outpace the global average significantly.
"India is a unique country which has both sourcing as well as consumption capacity," says Nandita Sinha, CEO of Myntra, India's leading fashion e-commerce platform. "This is where the value for international brands becomes extremely lucrative, where they can reach out to this large base of customers in a manner that taps into the supply potential of the country as well."
However, entering the Indian market requires careful consideration. International brands must overcome infrastructure challenges, navigate complex regulations, and adapt to local consumer preferences, which often favour traditional wear and fusion styles.
Japan: The luxury market's shining star
Japan's luxury fashion market is experiencing a remarkable boom, fuelled by a weak yen and a surge in tourism. In the first half of 2024, the market grew by 25 to 30 percent, attracting luxury shoppers from around the world.
"The crucial point here is we try to find the customers again and again that fit our model," says Michael Kliger, CEO of Mytheresa, a leading online luxury retailer. "In-person events for top customers are one of Mytheresa's primary sales drivers."
With tourism spending expected to reach almost $100 billion by 2030, Japan's luxury market is set for continued growth. However, brands must adapt to local preferences for personalized services and curated experiences to fully capitalize on this opportunity.
|
Retail Sales Growth |
India |
Japan |
US |
Europe |
China |
|
Non-luxury |
12 to 17% |
3 to 4% |
2 to 4% |
2 to 4% |
|
|
Luxury |
15 to 20% |
8 to 12% |
3 to 5% |
1 to 3% |
-3 to 0% |
A new era for fashion in Asia
As India and Japan take centrestage, the fashion industry must rethink its approach to these dynamic markets. Localizing go-to-market strategies, building robust omnichannel capabilities, and understanding the nuances of each market will be crucial for success.
The rise of India and Japan presents a unique opportunity for the global fashion industry. By embracing these Asian growth engines, brands can unlock new avenues for growth and innovation, shaping the future of fashion in Asia and beyond.
