Apparel Industry in India 2025: Trends, Challenges, Growth Opportunities & Solutions

Nov 26, 2024 | E-commerce Industry

Home > Blog > Apparel Industry in India 2025: Trends, Challenges, Growth Opportunities & Solutions

The apparel industry in India is poised for substantial growth, with a projected revenue increase of 10.5% in FY26. This growth is primarily driven by the rise of fast fashion, shaped by social media trends and Gen Z’s demand for stylish, on-trend apparel. The growing popularity of ethnic wear and the luxury segment has also contributed to this positive trajectory. This expansion is fueled by a transformative approach, with a strong emphasis on innovation and scalable solutions to effectively meet evolving consumer needs. The industry is projected to reach US$710.60bn by 2029 with annual CAGR growth of 7.92%.

Apparel Industry in India

Indian e-commerce in the apparel industry is expected to reach US$ 63 billion by 2030 with (CAGR) of 24% from 2023 to 2030. With this remarkable growth, the sector presents immense opportunities for innovation and expansion.

The apparel industry is known for its ability to adapt to change, with new trends and styles emerging regularly. Change has always been the wardrobe essential of this industry, happening almost every quarter of each year. This constant need for adaptation also brings its own set of challenges for the industry.

Keeping up with the fast-paced nature of the industry can be difficult for brands and retailers, as they need to stay ahead of the latest trends and styles while also managing costs and maintaining profitability. With a rotational shift happening in the industry, Unicommerce decided to go ahead and curate e-commerce fashion trends, challenges, opportunities, and solutions that can help you manage and schedule your business action plan in 2025!

India Apparel Market Insights

India Apparel Market Size was valued at USD 115.70 Billion in 2024. The India Apparel market industry is projected to grow from USD 120.36 Billion in 2025 to USD 171.60 Billion by 2034, exhibiting a compound annual growth rate (CAGR) of 4% during the forecast period (2025 – 2034).

As per Statista

Revenue to hit $109.5B in 2025
Annual growth at 3.24% (2025-29)
Women’s Apparel leads at $53.13B
Market to reach 41.4B pieces by 2029
Volume growth of 3.6% in 2026
Avg. 24.9 pieces per person in 2025
98% sales from Non-Luxury by 2025

India’s apparel market is experiencing a surge in demand for sustainable and ethically produced clothing, driven by increasing consumer awareness and a shift towards conscious consumerism.

Let’s look at the growing trends, challenges, opportunities & solutions in the apparel industry.

Current Trends in Apparel Industry in India

The apparel industry is constantly evolving, with new trends emerging each season. Here are a few of the key trends to watch in the industry in the coming year:

1. Fashioning the Future With Sustainability

Consumers are becoming increasingly conscious of the environmental impact of the clothing they purchase. As a result, sustainable fashion, also known as eco-fashion or ethical fashion, is becoming an increasingly important trend in the industry.

Brands are increasingly using organic cotton, bamboo, and linen, which are grown without synthetic pesticides and fertilizers. Recycled materials, such as recycled polyester and nylon, are also becoming more popular as they help to reduce waste and pollution.

Another key aspect of sustainable fashion is the use of sustainable production methods. This includes reducing water and energy consumption, using low-impact dyes, and implementing fair labor practices. As consumers become more conscious about their purchasing power and environmental impact, it is expected that sustainable fashion production will become increasingly important.

2. Revolutionizing Fashion with Athleisure

Athleisure, a trend that combines athletic and leisure wear, has been revolutionizing the fashion industry in recent years. This trend has been driven by the increasing popularity of comfortable, functional clothing worn both in and out of the gym.

As per Statista:The sports and athleisure retail market in India was valued at 158 billion Indian rupees in the financial year 2021, and is estimated to grow to 402 billion rupees by the financial year 2025. Footwear made up the largest chunk of the market during the measured time period, amounting to about 90 billion rupees in 2021, and projected to grow by 21 percent by 2025.

Brands are now offering a wider range of options, from performance-focused gear to more casual and street-style pieces. This has led to the creation of new styles, such as the fusion of athletic wear with formal wear, and has opened up new possibilities for fashion designers.

Another aspect of athleisure is the use of technology, such as moisture-wicking fabric and UV protection, to enhance the functionality of athletic wear. Apparel businesses are investing in research and development to create new fabrics and technologies that can improve the performance of athletic wear.

Overall, athleisure has been a game-changer in the fashion industry, with its versatility and functionality driving the demand for athletic wear. As the trend continues to evolve, it’s likely that we’ll see more innovations in the design, materials, and technology of athletic wear, making it even more appealing to consumers.

3. Market Growth Headed by Women and Kids Wear

The shift in lifestyle and priorities of modern women is leading to a greater focus on self-awareness and appearance, driving growth in the women’s apparel market. As they are becoming more conscious of their fashion choices, the demand for trendy and fashionable clothing is increasing.

The market for kids’ wear is driven by factors such as the increasing number of working mothers and the growing trend of parents investing in high-quality clothing for their children. According to a recent report by Wazir Advisors, India’s kids’ wear market in the urban market is expected to reach INR 1,57,000 Crores by 2025, growing at a CAGR of 13%.

In terms of product segments, the market for women’s wear is segmented into ethnic wear, western wear, and lingerie. Western wear is expected to be the most lucrative segment in the women’s wear market, driven by the increasing demand for casual and formal wear. With the growth of e-commerce, the market is expected to continue growing, providing opportunities for fashion retailers and manufacturers.

4. Regional brands Scaling to National Level

Regional brands are expanding to the national level through strategic shifts, leveraging their deep connections with local vendors to enhance supply chain flexibility and reduce production costs. This enables them to offer competitive pricing on a national scale. As these brands grow, their commitment to quality products allows them to refine supply chain efficiency further, meeting the demands of consumers across a broader geographic area.

Additionally, regional brands have a deep understanding of local tastes and preferences, allowing them to develop products that resonate with specific demographics. This insight enables them to meet the demands of their target audience on a national scale, ensuring they stay competitive as they scale.

5. Style and Functionality are Key to Modern Consumer’s Wardrobe

When it comes to fashion, modern consumers are looking for clothing that not only looks good but also serves a purpose. The combination of style and functionality is becoming increasingly important in today’s wardrobe. Consumers are looking for comfortable, durable, and versatile clothing that can be worn for different occasions and meet different needs.

Functionality is especially important for activewear and athleisure, as consumers seek clothing that can keep up with their busy lifestyles and support their physical activities. Fashion, on the other hand, fashion is essential in creating a unique and personal style. Consumers are looking for clothing that reflects their personal tastes and preferences and makes them stand out.

Brands are responding to this by offering a wide range of options, from classic and timeless styles to trendy and fashion-forward pieces. As lifestyles and fashion preferences evolve, brands and retailers that understand and respond to these needs will be well-positioned to succeed in the market.

6. The Growing Era of Digital First Brands

The apparel industry is currently experiencing a shift towards digital-first brands. These brands prioritize online sales and digital marketing over traditional brick-and-mortar retail and are utilizing technology to create a seamless and personalized shopping experience for consumers.

One of the biggest advantages of digital-first brands is their ability to reach a global audience through e-commerce. These brands can sell directly to consumers, bypassing traditional retail channels and cutting down on costs. This allows them to offer a wide range of products at competitive prices.

With the advancement in technology and more people turning to the internet for fashion inspiration and shopping, digital-first brands will have a significant opportunity to thrive in the industry.

7. Apparel Industry & Quick Commerce

The apparel industry is rapidly adapting to the demand for quick delivery, either through quick commerce (Q-commerce) platforms or by launching its own versions of such services. Following this trend, essential items like white shirts and solid-color T-shirts are now being stocked in dark stores on quick-commerce platforms. Activewear is also becoming part of this offering, as seen with Decathlon’s partnership with Zepto.

Additionally, Myntra has introduced its own quick-commerce service, M-now, and is piloting a two-hour delivery service in select areas of Bengaluru. This shift highlights how the industry is evolving to meet the growing consumer demand for faster delivery times and more immediate access to products.

Top 10 leading Apparel Brands in India

Leading brands in India combine tradition, innovation, and style to cater to the diverse preferences of Indian consumers. Here is a list of the top 10 leading apparel brands in India.

BIBA – Biba, founded in 1988 by Meena Bindra, started as a homegrown boutique specializing in salwar kameez and dupattas. It offers a diverse range of ethnic wear, from traditional kurtas for women and suits to contemporary designs that blend modern style with classic elegance.
Trent Limited – Trent Limited, owned by the Tata Group based in Mumbai, was founded in 1988 and has since become one of India’s leading fashion brands in India.
Aurelia – Aurelia, established in 2009 by TCNS Clothing Co. Ltd., has rapidly emerged as one of India’s leading brands, offering modern and stylish ethnic wear for women.
Manyavar – Manyavar is a leading brand renowned for its Sherwanis, elegant Indo-Western designs, royal Bandhgalas, trendy Kurta jackets, and matching accessories for life’s special moments.
W for Woman – W for Women offers a wide range of stylish and comfortable clothing that seamlessly blends traditional Indian wear with modern Western styles.
Snitch – Snitch is a D2C brand known for its innovative designs, affordable prices, and strong commitment to sustainability and social responsibility.
Louis Philippe – Louis Philippe, a subsidiary of Madura Fashion & Lifestyle, offers a wide range of suits, blazers, shirts, t-shirts, denim, and chinos, perfect for everyday wear.
Flying Machine – Flying Machine is an iconic Indian denim brand known for its coolest collection of jeans, jackets, t-shirts, sweatshirts, hoodies, and watches.
Mufti – Mufti is a popular men’s fashion brand known for its wide range of products, including stylish shirts, tees, polo shirts, jeans, cargo pants, trousers, chinos, shorts, and more.
Raymond – Founded in 1925, Raymond offers premium styling, quality, and value to its customers with formal blazers, jackets, trousers, denim, and shirts, all crafted using state-of-the-art manufacturing techniques.

Opportunities in the Apparel & Fashion Industry

The Indian textile and apparel market has significant growth potential, with the industry projected to reach $190 billion by 2025-26. To reach this target and establish a sustainable textile industry, Indian businesses must take advantage of government support schemes, meet global buyer sustainability demands, and prioritize supply chain traceability.

Government policies and regulations have directed their focus on this industry. Mr. Piyush Goyal, the Minister of Textiles, announced that the Indian government plans to create 75 textile hubs across the country. Not to mention the government has also reduced the custom duty rates on caprolactam, nylon chips, and nylon fiber and yarn to 5%. These regulations have created plenty of opportunities for the Textile and Apparel Industry in the e-commerce sector.

With lined-up opportunities, there come several challenges for simplified apparel e-commerce.

Current & Future Challenges and Problems in the Apparel Industry

The apparel industry is characterized by high width and low depth, requiring a broad range of products across various styles, sizes, and categories but with lower production volumes for each. This creates several challenges for sellers in aligning supply chain efficiency with evolving trends, shifting consumer habits, and market dynamics.

Difficulty in managing customized order allocation and inventory sync
Counterfeit returns lead to financial losses and inventory discrepancies
Accurate inventory tracking across various product ranges (color, size, design, category)
Unable to align warehouse operations manually
The impact of COVID-19 and the need to adapt to the changing retail landscape and consumer behavior
Inability to manage deliveries, leading to a higher % of Customer Initiated Returns (CIR)
Hard to align multiple sales channels and offline stores alongside
Back-breaking for e-commerce platforms to manage multiple vendors
Untimely and inefficient delivery of products
No stock rotation leading to outdated stock
The increased cost of Reverse Logistics
The need to navigate the complex and ever-changing regulations and compliance requirements
Poor management of returns and cancellations
Difficulty in predicting and managing demand, inventory, and logistics

Evolving Practices as a Solution to Challenges in the Apparel Industry

Starting up your own fashion e-commerce business has never been easier, especially post the pandemic. Right from managing the inventory and warehouse operations to timely updating the digital attire of an e-commerce store, the aspects are many. But with the advancement of technology, it has become important to adopt some upcoming practices, aligning the sales with your operations.

Following are some of the upcoming e-commerce practices that act as a solution to the challenges you are witnessing during these tough times.

1. Delivering Omnichannel Experiences

It has become imperative to provide customers with a seamless experience at all touchpoints. Integrating and aligning offline and online channels together helps both businesses and customers develop better relationships. Omnichannel retail offers unhindered shopping experiences to customers and helps keep the inventory and stock levels uniform. With its advanced Omnichannel solution, Unicommerce has enabled effortless business operations & tremendous growth for Iconic Fashion India.

2. Serving Directly With the D2C Business Model

D2C is quite a recent approach wherein brands deal with customers directly, eliminating intermediaries. While many new brands are adopting this strategy, some established brands are switching from traditional business models to D2C models. According to Unicommerce’s e-commerce Q3 2022 trends report, the e-commerce industry witnessed robust order volume growth of 48.3% through the brand websites, while marketplaces recorded a 21.5% order volume growth.

But the question is, what makes it so different that almost all the new brands are swearing by this approach? Well, the biggest advantage for a D2C brand is that they can shorten the time to sell the products, giving their customers a better price while earning a higher margin. Direct to Consumer (D2C) e-commerce allows the original brand voice to come in front, giving brands better engagement with their customers. Moreover, the new-age solutions of Unicommerce are made specifically for D2C brands like Enamor, Chumbak, etc., to scale on higher revenues.

Why Unicommerce?

Unicommerce, the #1 cloud-based e-commerce solution, is focused on changing the face of Indian Fashion retail. It is on a mission to automate the largely scattered apparel industry to make it technology-driven. Its Order and Warehouse Management solutions help to automate clients’ supply chain operations for both online and offline businesses (B2B and B2C). Moreover, Unicommerce comes with 260+ integrations; Cart, Marketplaces, Logistics, ERP, and POS systems to manage the needs of Wholesalers, Distributors, Retail Chains, Individual Store owners, and e-commerce sellers to increase revenue and save operations costs.

Unicommerce’s robust supply chain technology solutions have resulted in exponential business growth, & improved unit economics for over 20,000+ global marketplaces & brands across India, the Middle East, the Philippines, and Southeast Asia. Some of the notable clientele of Unicommerce in the fashion and apparel industry include TCNS Clothing Co. LTD. (W, Aurelia, Elleven), Oryvo, Bestseller (Vero Moda, Jack & Jones, Only), Being Human, GAP, GANT, Crocs, etc.

Below is a quick brief about Unicommerce’s offerings:

Advanced Warehouse Management System – Unicommerce helps track inventory counts and manage dispatched and allocated orders, making the flow of operations simpler and more efficient. Moreover, you get a real-time update on the entire warehouse operations across multiple locations.
Omnichannel Retail Solution – Unicommerce’s omnichannel solution allows you to manage orders by syncing online stores with offline channels. This enables customers to have orders delivered from nearby stores if the product is unavailable in the online store. Additionally, if a customer prefers to check out a product physically, they can visit a nearby store where the item is available, offering greater flexibility and convenience.
ERP/ POS Management – All the current ERP/POS systems (Tally, Base, Oracle, Navision, SAP, etc.) get effortlessly integrated into our omnichannel software product.
Bundle Management – Unicommerce has a Bundle Management feature that lets you create combo packs while updating combo product SKUs in real-time across multiple sales channels.
Logistics Integration – Unicommerce helps brands reduce cancellations and returns as it automates the whole process, ensuring the right product gets shipped to the customers.
Unified Vendor Panels – With the Vendor Management solution, e-commerce fashion retailers can seamlessly manage suppliers via centralized login.
Unified Inventory Management – Unified inventory management is critical in the apparel industry, where a broad range of products exists across various sizes, colors, and categories. Efficient tracking of products across these variables is essential to prevent overstocking and understocking. This approach improves inventory management efficiency, reduces costs, minimizes the risk of holding excess or outdated stock, and ensures optimal product availability. By streamlining inventory, businesses can enhance operational efficiency and reduce the risk of overselling.
QC at the Packaging Stage – Unicommerce facilitates quality checks at the packaging stage, ensuring the correct product is packed and delivered to the consumer. This process helps minimize return rates and enhances customer satisfaction.
Myntra Tagloop Implementation – To address the issue of counterfeit returns, Myntra introduced the Myntra Tagloop concept. This involves attaching a unique tag to each product, which, if removed, prevents sellers from returning the item. If the product is returned with the tag intact, it is easily identified as the original item, helping to prevent counterfeit returns.
Analytics & Reports – Unicommerce allows you to analyze and monitor your daily operations through its Dashboard. You can track key metrics such as orders fulfilled, sales achieved, returns processed, channel-wise sales performance and more. Inventory level updates across various marketplaces keep you informed, enabling you to view all critical data in one centralized platform for better decision-making and efficiency.
E-commerce Returns Management – Managing RTO and CIR are not difficult anymore. Unicommerce offers a comprehensive returns management solution through a centralized panel to manage returns across all sales channels, amplifying your overall sales profits.
Marketplace Integration – With 140+ marketplaces and website integration, Unicommerce lets you sell efficiently across multiple sales channels such as Amazon, Myntra, Flipkart, etc.
Simplified Fulfillment – Unicommerce streamlines the fulfillment process with efficient picking, packing, and invoicing. It also supports bulk order processing and offers optimal routing capabilities, especially when managing multiple warehouses, ensuring smooth and timely order fulfillment.

To coincide, e-commerce brands in the fashion and apparel industry are rising. The Apparel industry is entering a phase where the opportunities are endless, provided the sector is getting constant assistance and support from the government. New and updated practices are required to address the rising challenges. However, online fashion brands must reorganize their business model to cater to the evolving demands of the competitive business environment.

Frequently Asked Questions (FAQ)

1. What is the size of the India Apparel market?
In 2023, the India Apparel market size was valued at USD 111.23 Billion & USD 115.70 Billion in 2024.

2. How fast is the India Apparel market growing?
The India Apparel market is projected to grow at a CAGR of 4% during the forecast period, 2023-2034.

3. Who are the major players in the India Apparel sector?
The key players in the India Apparel market are Welspun Group, Vardhman Group, Alok Industries Limited, Raymond Limited, Bombay Dyeing, Garden Silk Mills Limited.

4. Which raw material dominates the India Apparel market?
The natural fibers category dominated the market (in 2023).

5. Which product type holds the largest market share in the India Apparel industry?
The fabric category had the largest share of the India Apparel market.

6. Which is the largest apparel company in the world?
Louis Vuitton is the world’s largest apparel company by market cap at $392.66 billion, ranking 22nd globally. Hermès and Inditex (Zara’s parent) follow in second and third place.

7. Which country has the world’s largest apparel market?
The U.S. has the world’s largest apparel market ($365.7B), followed by China ($313.8B) and India ($101.4B). The average U.S. household spends $162 monthly on apparel.

8. Who is the biggest apparel manufacturer in India?
Some of the biggest players of apparel manufacturers in India are – NoName, Shahi Exports, Orient Craft, Bombay Rayon Fashion Ltd (BRFL), Pearl Global Industries Ltd (PGIL), Men Rocks Pvt Ltd, Vishvas International pvt ltd, Goodwill Fabrics Private Limited, Ahill Apparel Exports Private Limited, Indo Slate.

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