India is set to “take center stage” in 2019, according to McKinsey’s State of Fashion Report. Traditionally, the country was a sourcing destination, more than a popular consumer market. Interestingly enough, their growing middle class is outpacing the rest of Asia. Also, the population is becoming increasingly tech-savvy. Along with an “increasingly powerful manufacturing sector,” India is the next one to watch.
India’s apparel sector growth
By 2022, India’s apparel industry will reach $59.3 billion, according to McKinsey. Moreover, it will be the “sixth largest in the world.” They added that “41 percent of procurement officers expect to increase their sourcing share from India.” Besides, many firms have been diversifying their supply chains to avoid Chinese tariffs. Due to a lower labor cost and abundance of “cotton, wool, silk, and jute, “India is an alluring alternative.
A shift in consumption
A 2018 CNBC report stated that “Indians are learning to consume more and more. Every new generation of Indians has consumed more than its predecessors.” This new shift has led to the concept of the “Gold Collar” worker. McKinsey defined them as “the well paid, highly paid professionals, who are happy to look good, happy to feel good and are expanding the consumption of today.”
This newfound disposable income sets the stage for the projected 300 international apparel brands poised to open in India in the next two years. CNBC shared that brick-and-mortar is snowballing; e-commerce isn’t at the same rate. However, as more consumers in India get online, it will catch up.
Brands are learning how to market to India by mixing both the traditional and modern sensibilities. It turns out, in 2017 traditional clothing made up “70 percent” of women’s clothing purchases. Although, the country has embraced a technology-fueled shopping experience. Virtual dressing rooms, digital displays, and expansion of entertainment and restaurants have taken over malls.
Connect with India at Apparel Textile Sourcing Canada
This time is an exciting one to watch as India further makes its impact on the global apparel industry. Also, it’s stepping up to the plate as a desirable consumer market. At ATSC 2019 India has a larger-than-ever Indian Pavillion. Now, attendees can source products, raw materials, and manufacturers that can accommodate both large and small purchase orders. You don’t want to miss this! Register for free here, and we’ll see you August 19th-21st in Toronto.