BENGALURU: Driven by millennials and Gen Z population, the Indian fast fashion industry is projected to reach a massive $50 billion market by FY31, a report showed on Tuesday.

In FY24, the fast fashion sector (currently valued at $10 billion) saw a remarkable growth rate of 30-40 per cent in the country, according to data from Redseer Strategy Consultants.

In contrast, the broader fashion sector in India saw a modest 6 per cent (year-on-year) growth.

The fast fashion sector provides affordability, combined with constant access to trendy styles, making it a game-changing experience.

“Despite a year of sluggish consumption, fast fashion stood out as one of the few thriving sectors in India’s retail market, ” said Kushal Bhatnagar, Associate Partner, Redseer.

However, India’s fast fashion market, while substantial, remains comparably smaller than global giants like Shein, which is 3 times larger.

The industry can be classified into three segments based on price point: ultra-value, mid-value and premium. Each segment requires distinct business model strengths.

According to the report, the mid-value brands segment will see the maximum proliferation of brands, leveraging low-entry barriers and experimental consumer behaviour to drive growth.

Further, brands with unique and value-adding positioning are expected to appeal strongly to customers, the report mentioned.