India: A growing hub for global lifestyle brands

India is rapidly becoming a crucial destination for global lifestyle brands seeking to expand their reach. According to a recent study, 90% of the top 50 global brands are already active in the Indian market, with many more preparing to enter. This trend is driven by the robust online sales environment and the expanding e-lifestyle market in the country.

The study, conducted by Bain & Company and Myntra, provides valuable insights into why India is emerging as a hotspot for global lifestyle brands. By analyzing extensive data, interviewing industry experts, and studying market trends, the study highlights India’s significance for these brands.

Growth and Opportunities for Global Lifestyle Brands

The findings reveal that India holds substantial economic potential for global lifestyle brands. More than half of the top 50 global brands generate over USD 30 million in revenue from their Indian operations. From 2018 to 2023, major fashion brands in India experienced an impressive annual sales growth of 20%.

The study, titled “E-Styling India: Decoding India’s Online Fashion and Lifestyle Shopping Trends,” reports that over the past year, more than 60 lifestyle brands have either launched or are preparing to launch in India. This influx includes a diverse range of brands—from those earning over USD 1 billion globally to mid-sized, luxury, new-age, and special East Asian brands.

The online market has become the preferred channel for global lifestyle brands entering India. This platform offers numerous advantages, such as access to a vast customer base and valuable market insights. Online sales play a pivotal role for top global brands in India, providing access to a broad customer pool of 175 million e-lifestyle shoppers. Additionally, it offers detailed customer data and support for managing online operations.

Brands like H&M and Mango have leveraged online platforms to extend their reach into smaller cities and navigate the challenges of entering a new market. India’s e-lifestyle sector has witnessed significant growth in recent years, with a diverse shopper base. Notably, two out of three online shoppers come from cities outside the top 50, half of the shoppers belong to less affluent segments, and one-third are Gen-Z consumers.

Shyam Unnikrishnan, a partner at Bain & Company, emphasizes the continued expansion of India’s e-lifestyle market. He notes that one in every five dollars spent on lifestyle products is now online. The Indian lifestyle market, valued at USD 130 billion, is projected to grow at an annual rate of 10-12%, reaching USD 210 billion in the next five years. Fashion constitutes nearly 80% of this market, with beauty and personal care making up the remainder.

Future Prospects for Global Lifestyle Brands in India

The anticipated growth in the e-lifestyle market is supported by several factors, including reduced short-term inflation, rising incomes, and an increasing number of fashion-forward, digital-native Gen-Z shoppers. Additionally, there is a growing demand for organized and branded products, further fueling the expansion of global lifestyle brands in India.

India’s diverse customer base and burgeoning online sales environment present numerous opportunities for global lifestyle brands. The country’s expanding e-lifestyle market, coupled with its strong digital infrastructure, offers a fertile ground for brands looking to grow and succeed. As global brands continue to explore and capitalize on these opportunities, India’s role as a key player in the global lifestyle industry is set to become even more prominent.

With its combination of a large and varied customer base, robust online sales, and significant market potential, India stands out as a prime destination for global lifestyle brands aiming to enhance their presence and performance in the international market.

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