The secret to success in India's multibillion-dollar fashion industry

For a country like India, fashion exists in a starkly different way. And it exists in a starkly different way from city to city, town to town. At the heart of Indian consciousness lies a sense of frugality. So, how can an international fashion brand make the best debut in a multiverse of fashion? And, how can it make the most of its investments from the Indian fashion industry? Read on:

Going Glocal

Traversing through trends in India, one can instantly realise why the country stands apart- a single peak reveals diversity in fashion owing to diversity in communities. For a space that breathes heritage and contemporariness alike, it can be a tricky business to weave a collection that resonates with many, if not all. 

Louboutin’s collaboration with Sabyasachi was a hit. (Source: https://www.instagram.com/cosmoindia/)

The perfect incarnation of the ‘going glocal’ strategy can be seen in the Christian Louboutin x Sabyasachi capsule collection launched a few years ago. Essentially seen as an amalgamation of art, it can also be inspected as an effective business strategy. Louboutin’s signature shoe making merged with Sabyasachi’s stunning interpretation of Indian heritage, resulting in a limited collection that cast a stunning spell on India’s affluent consumers.

The Indian Consumer Psychology

Another feature that is difficult to track is the people’s mind-set. Consumers here are highly sentiment-driven, when it comes to the cluster that engages in conscious shopping. For most, luxury is seen from the eyes of investment, ensuring strong returns, and not something to be fiddled with and forgotten.

Studies conducted on consumer psychology in India point out that luxury is highly associated with status symbol. Added to this is the mentality to purchase goods that are value for money. Putting two and two together, stepping into the country’s luxury waters would mean deriving a plan that focuses aggressively on price: nailing that precious spot where the consumers are incited to shop, while ensuring stable, if not profitable returns to the international brand.

The perfect breakthrough

Tapping into one of the fastest growing economies in Asia isn’t quite as easy as it looks. A quick look at the dynamics tells us that luxury is no longer chased by the elite alone. A surge in the desire to purchase luxury apparels has been observed among people falling in upper middle class groups. Last year, McKinsey’s report titled The State of Fashion predicted an overwhelming growth of India’s middle class by 1.4%.

Some brands mark their debut owing to the prospect of a heightened demand in the future. Some stride in because of a pre-existing rallying cry for novelty or change among Indian consumers. Either way, to succeed in India’s fashion market, one needs to hit the right spot for everything- store locations, collection aesthetics, business costs etc.

Canali has partnered with Reliance Brands Limited in India. (Source: https://www.canali.com/en_lu/store_finder/new-delhi-emporio-mall-canali-boutique.html)

Take a cue from luxury fashion labels like Burberry and Canali, which have partnered with Reliance Brands Limited (RBL), one of the frontrunners in India’s retail scenario. RBL has a strong insight of India’s fashion market parameters, and has helped global fashion brands in attaining long-term goals. It seems to have cracked the code to the perfect mix of logistics, operations and human resources. Thus, the secret to success in India’s multibillion-dollar fashion industry rests in a well-known, yet difficult-to-achieve amalgamation: Pragmatic efforts by international brands coupled with impeccable indigenous knowledge can help leverage the best of Indian fashion market.

Things to note

Current predictions indicate that accessories are set to have a greater demand, compared to garments. For luxury fashion brands planning to strengthen their hold, or even retain their presence, this is a key drawing to dwell upon.

Apart from a few blips that can be dismissed, the fashion sector in India is faced with the looming spell of the pandemic. But perhaps fashion markets everywhere are precarious. Some forecasts point to a plummeting trajectory, while others are optimistic of a speedy recovery of the country’s economy and people’s willingness to spend on high fashion. They might initially direct their earnings towards more essential goods, but online luxury sales might rise soon enough. International fashion labels planning to step into the country or start afresh must take into account the current trends and be prepared to slog hard.