India Emerges as Prime Destination for Global Lifestyle Brands: 90% of Top 50 Now Active
News Mania Desk/Agnibeena Ghosh/7th August 2024
India is rapidly establishing itself as a pivotal market for global lifestyle brands, with a remarkable 90% of the world’s top 50 brands now operational in the country. This surge in activity is driven by the expanding e-lifestyle sector and robust online sales channels, as highlighted by a recent study from global consultancy Bain & Company and lifestyle e-commerce platform Myntra. The comprehensive analysis, based on Bain’s research, secondary data, and industry insights, underscores India’s burgeoning role as a key player in the global lifestyle arena.
The study reveals that a significant portion of these global brands—approximately 50%—report revenues exceeding USD 30 million within India. This impressive performance is reflected in a 20% annual growth rate for major fashion brands in India from 2018 to 2023. This growth trajectory indicates a strong and expanding market for international lifestyle brands, as they increasingly tap into India’s vast consumer base.
Over the past year, more than 60 diverse lifestyle brands have either launched or planned their entry into the Indian market. These include major global players with revenues surpassing USD 1 billion, as well as mid-scale and luxury brands. Additionally, new-age and specialized East Asian brands are also making their mark, contributing to the dynamic and competitive landscape of India’s lifestyle sector.
One of the key findings of the study is the dominant role of online channels in facilitating global brands’ entry into India. The e-lifestyle market has become a preferred avenue for these brands due to its extensive reach and the valuable insights it provides into consumer behavior. With approximately 175 million e-lifestyle shoppers in India, online platforms offer brands an opportunity to access a broad customer base and gather granular insights for more effective market strategies.
Brands like H&M and Mango have successfully leveraged online sales to enhance their presence in tier-2 cities and manage operational challenges in the Indian market. This digital approach has allowed them to navigate the complexities of a new market while achieving significant reach and growth.
The study also highlights the evolving nature of India’s e-lifestyle market. Over two-thirds of online shoppers are from cities beyond the top 50, with a substantial portion coming from non-affluent segments and Gen-Z consumers. This diverse shopper base represents a significant opportunity for brands to expand their reach and cater to a wide range of consumer preferences.
India’s lifestyle market, valued at USD 130 billion with fashion comprising nearly 80% of this total, is poised for continued growth. The market is expected to expand at a compound annual growth rate (CAGR) of 10-12% over the next five years, reaching USD 210 billion. This growth is anticipated to be driven by factors such as easing inflationary pressures, rising incomes, and the increasing influence of digital-native Gen-Z shoppers.
In summary, India is solidifying its position as a key destination for global lifestyle brands, driven by a thriving e-lifestyle sector and a large, diverse consumer base. The country’s appeal is further enhanced by its robust online sales channels, which are crucial for brands looking to tap into this dynamic and rapidly growing market.
