While the global fashion industry faced numerous challenges in 2025, including economic slowdowns and shifting consumer preferences, certain regions presented opportunities for growth. Notably, Asia, particularly India, emerged as a key market for fashion brands seeking new avenues for expansion. The McKinsey Global Fashion Index predicted that non-luxury brands would drive economic profit in 2024, indicating a shift in consumer spending towards more affordable options. This trend aligns with the rising popularity of value-driven fashion in India, where consumers are increasingly discerning about quality and price.
Fashion executives recognized the need to adapt their strategies to cater to these evolving consumer demands. Localization of go-to-market models, broader price ranges, and a strong emphasis on brand positioning were identified as crucial for capturing the attention of value-conscious shoppers.
In addition to value, the shopping experience itself played a significant role in influencing consumer behavior. As shoppers returned to physical stores at pre-pandemic levels, retailers needed to elevate the in-store experience to entice customers. Well-trained staff, personalized service, and engaging store environments were essential for creating a positive and memorable shopping journey. This renewed focus on brick-and-mortar retail presented an opportunity for fashion brands in India to connect with consumers on a deeper level.
E-commerce also underwent a transformation, with smart players focusing on innovative product discovery methods. AI-powered curation, engaging content, and enhanced search functionalities were employed to help customers navigate the vast online marketplace and discover products more effectively. This trend resonated with the Indian market, where the rapid growth of e-commerce necessitated a more personalized and intuitive online shopping experience.
Demographic shifts also presented new opportunities for fashion brands. The growing “silver generation” of over-50 consumers, with their increasing purchasing power, became a significant target audience. Brands recognized the potential of catering to this often-overlooked demographic, offering styles and designs that resonated with their preferences and lifestyles. This trend was particularly relevant in India, where the aging population represented a significant untapped market for fashion brands.
Challenger brands, often unburdened by traditional approaches, gained traction by offering innovative products and experiences. This was particularly evident in the sportswear category, where smaller, more agile players captured market share by catering to niche consumer demands. The Indian fashion market witnessed a similar rise of homegrown brands that challenged established players with their unique offerings and localized strategies.
Finally, sustainability remained a critical consideration for the fashion industry. While consumers might not always be willing to pay a premium for eco-friendly products, the long-term benefits of sustainable practices were undeniable. Brands that prioritized sustainability gained a competitive advantage by appealing to environmentally conscious consumers and reducing their environmental footprint. This resonated with the growing awareness of sustainability in India, where consumers were increasingly seeking ethical and environmentally responsible fashion choices.
