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India’sDigitalFashionDisruptors

Navigatingthefutureoffashion

ByRadhikaSridharan,PrashantSarin,andPrashanthAluru

BAIN&COMPANY○

Abouttheauthors

ThisreportwasspearheadedbyRadhikaSridharan,apartnerinBain&Company’sMumbaiofficeintheglobalCustomerStrategyandMarketingpractice;PrashantSarin,aseniorpartneratBain&

Company;andPrashanthAluru,CEOandcofounderofTMRW,ahouseofbrandswithintheAdityaBirlaGroup.ThereportwassupportedbyRachitJain,amanagerinBain&Company’sNewDelhioffice;NamrataLal,headofstrategyandchiefofstaffatTMRW;andPrashantSharma,chief

marketingofficeratTMRW.

Keycontacts

Bain:

RadhikaSridharan(radhika.sridharan@)

TMRW:

PrashantSharma(sharma.prashant@tmrw.in)

NamrataLal(namrata.lal@tmrw.in)

Formarketingqueries

SitaraAchreja(sitara.achreja@)

Acknowledgements

TheauthorsthankRiyaGoyal,AarushiGupta,MdMuazHyder,AtharvaMirajkar,andGokulMohanrajatBain&CompanyfortheircontributionstotheinsightsinthisreportandBain&Companyglobalpartnersfortheirexpertiseandinput.Theteamwouldliketothankallthecompanies,executives,employees,andexpertswhosharedtheirperspectivestodevelopthisreport.

Keysources

Thisreportisbasedonanextensiveanddata-basedanalysisoftheperformanceofbrandsinthe

fashionandlifestylespace.Analysiswasbasedonkeyoperationalmetricsofmorethan700digitaldisruptorbrands(includingfinancialdataformorethan150digitaldisruptorbrands)andmore

than100nationalbrands,traffic,socialmediaengagementmetricsacrossmorethan200brands;marketplaceproductdataacrossthreekeye-commerceplatforms;andinterviewswithapproximately1,100consumersintheonlinespaceandseveralfoundersandexpertsinthisspace.

Copyright©2023Bain&Company,Inc.Allrightsreserved.

TMRW|Bain&Company,Inc.

1

India’sDigitalFashionDisruptors

Executivesummary

Fashion:Achanginglandscape

ThefashionandlifestylespaceisIndia’ssecondlargestconsumercategory,valuedat$110billionwithapproximately10%onlineat$11billion.Theonlinefashionmarketoverallisexpectedtogrowtoapproximately$35billionbyfinancialyear2028(FY28)ata25%CAGR.Thismarkethasbeen

historicallyfragmentedintoseveralsmallbrandsandsellers.Thevibrantlocalmanufacturingecosystemandrichtraditionofnativefabricshaveledtoastructurallyunbrandedmarket

(particularlyincertaincategoriessuchasethnicwear).Venturecapital/privateequityfundinginthelifestylespacehashistoricallybeenrelativelymuted.However,thismarketisundergoingasignificantchange.

Consumerpreferencesareshifting,withanincreasingwillingnesstoexperimentwithnewbrandsandagrowingdesiretowearaspirationalbrands.E-commercehasdemocratizedaccesstofashion,includingfashionbrands.Thecategoryhasseenaround30%historicalgrowth,compoundedannually,since2019.Certainhistoricallyfragmentedsubcategories,suchasethnicwearandkidswear,are

alsoundergoingsignificanttransformationwiththegrowthandscalingofnewdigitallyledbrands.

Thisreportfocusesonunderstandingthehistoricalgrowthpatternsintheonlinefashionandlifestylemarket,especiallyfordigitaldisruptorbrands.Thereportaimstodothefollowing:

•Identifykeyfactorsthatwilldrivegrowthfordigitaldisruptors

•Identifyshiftsinconsumerbehavioraffectingdigitalgrowth

•Decodethepathtoprofitabilitybasislearningsfrombrandsinthisspace

•Crystallizethegrowthplaybookfordigitaldisruptorbrandsinthenextphaseofmarketevolution

Market“brand-ification”

Theonlinefashionmarketisapproximately$11billionandhasgrownataround30%peryearsince2019,ledbyfourcategoriesofplayers:nationalbrands,privatelabels,digitaldisruptorbrands,andunbrandedsellers.Nationalbrandsarehistoricallyestablishedandbeganlargelyoffline.These

includebrandssuchasLouisPhilippe,Puma,andBiba.PrivatelabelssuchasAvaasafromAJIO

havebeencreatedandscaledbyonlineretailerstoexpandassortmentandfillpricegaps.Digital

disruptorbrands,suchasTheSouledStoreandBewakoof,werebornonlineandhavetakenaradicallydifferentdirect-to-consumer(D2C)approachtoscalingthebusiness.Finally,thefashionmarkethasalwayshadalongtailofunbrandedsellerswithanattractiveprice-ledvalueproposition.

2

India’sDigitalFashionDisruptors

Theseplayershaveseendifferenttrajectoriesoverthepastfouryears:

•Nationalbrandshaveturbochargedtheironlinebusinesses,doublingonlineshare,andnow

constitute$2.5billiononlineinFY23,havinggrownat34%between2019and2023.However,

mostnationalbrandsexpecttoseeamorebalancedgrowthpatternwithofflinechannelsastheimpactofthepandemicwanes.

•Privatelabelshavescaledtoaddressunderservedcategoriesandpricepoints,therebyexpandingthetargetconsumerbaseforbrandedproducts.

•Digitaldisruptorshavegrown,especiallyincertainfragmentedcategories,to$2.4billion,with33%growthyearlysince2019.Thesenewbrandshavefocusedonunderservedpartsofthe

marketandcreatednewofferingsthatindexonvalue,designaesthetics,speedtomarketwithnewtrends,orcommunityengagement.Theirdigital-firstoperatingmodelenablesspeedanddata-leddecisionmaking.

Bainresearchsuggeststhatthedigitaldisruptorsegmentwillgrowrapidly.Withalargecurrentmarketsizeofapproximately$2.4billionandaprojectedannualgrowthrateofaround35%,

digitaldisruptorshavethepotentialtoreachavalueof$10billionbyFY28.Fourmajorfactorswillunderpinthisshift:

•Youngaudienceshaveagreaterpropensitytotrytobuyfromnewbrands.Astheyconstituteagrowingshareofonlinefashionpurchases,themarketfordigitaldisruptorswillgrow.

•Certaincategorieswithunderservednichesandbrandfragmentation,suchasexpressivewear,ethnicwear,andfashionjewelry,allowdigitaldisruptorstocreatenew-scalebrands.

•Brandsthathaveinvestedincreatinggreaterawarenessarealreadyseeingnonlinearreturnsonconversionandshareofwallet(SoW).Increasingly,thiswillsupportreturnstoscalefor

suchbrandstoachievesignificantleadershippositions.

•Overthelastfiveyears,beautyandpersonalcare(BPC)($950million)attractedmorefundingthanapparel($430million),excludingthetoptwooutliersineachcategory.However,as

brandsdemonstratetheirscalingplaybook,apparelisexpectedtoattractmoremoney.

TMRW|Bain&Company,Inc.

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India’sDigitalFashionDisruptors

Disruptorgrowthandpathtoprofitability

Fashion—apparel,inparticular—hasrelativelylowbarrierstoentry.Nimbledigitaldisruptorswithadeepconsumerunderstandingandafocusednichehaveenteredthemarketinlargenumbers.Over700brandsexisttodaythathavecreatedahigh-qualityproduct,haveinvestedincustomeren-gagement,andoftenhaveadirect-to-customerrelationshiponsocialmediaorviatheirsite.

However,Bainanalysissuggeststhat,currently,lessthan10%ofthesebrandshavescaledbeyondINR50crore.

Fashionbrandsfacefourcommonchallengesontheirscalingjourneys:

•Managingassortmentcomplexity:Relativetobeautyandpersonalcarewhere12%ofstockkeepingunits(SKUs)drivemostsales,fashionhasalongtailwherethetop20%ofSKUsdrivelessthan50%ofsales.

•Newcategoryexpansion:FollowingthecustomerwouldhelptoidentifyadjacentcategoriesandexpandtheSoW.However,customersoftenbuyonlytwosubcategoriesfromafashion

brand.

•Investinginbuildingthebrand:Thereisaneedtobalancethetrade-offbetweenimmediatecustomeracquisitionspendingandmedium-termbrandinvestmentsthathaveathree-to-four-yearpayoff.

•Runningefficientoperations:Managinginventoryandreturnsandrunningagiledata-ledpricingandmarkdownoptimizationcanbechallengingbutiscritical.

Learningsfrombrandsthathavebrokenthroughtheinitialscalethresholdsuggestfourclearpatterns:

•Infashion,thethresholdscaleforhittingprofitabilityislow.BrandscanbeprofitableevenatINR100crorewhileretainingenoughfirepowerforgrowth.Usingoutsourcedproduction,

ridingonmarketplaceinfrastructure(physicalanddigital),andachievinghealthygrossmarginsinthecategoryenablethis.HousesofBrandsfurthercreatesignificantleveragethroughsharedhorizontalinvestmentsandcapabilities(includingintechnologyanddatascience).

•Brandsneedtoaddressunderlyinginefficienciesduringthegrowthphase.Duringthefirstthreetofouryearsofexplosivegrowth,whilecustomeracquisitioncostsareelevated,it’softenpossibleforbrandstolosesightofothercoremetricssuchasgrossmarginandrealizedprice.

Irrespectiveofbrandstageortype,disciplineinrangeiscriticaltosustainedeconomics.

4

•Whatyouplanisnotwhatyouget.Thecomplexityofassortmentmanagementforfashioncanaffectpricerealization,inventory,andreturns,witha4to5percentagepoint(pp)impactonearningsbeforeinterest,tax,depreciation,andamortization(EBITDA).

•Brands,notplatforms.Well-developede-commerceinfrastructureenablesbrandstorunveryleanoperations.However,somebrandsthathaveattemptedtobuildtheirowninfrastructurehaveincurredhighoverheads,whichcanchangeEBITDAtotheextentof5to10pp.

Thenextwaveofwinningbrandswillnotfollowthe

platformplaybookbutwillbetruefashionbrands,builtondifferentiatedpropositions,memorablebranding,asharp

understandingofassortment,andtightdata-ledoperations.

5

Lifestylemarketandbranddynamics

Market“brand-ification”

Onlinefashionisasignificant$11billioncategoryinFY23,growingat30%perannum

historicallysince2019.Growthintheonlinefashionspace,whichwaspreviouslylargelyunbranded,isnowdrivenbybrandsatvariouspricepoints.

Overthepastfouryears,theonlineshareofnationalbrandshasmorethandoubled,with

leadingIndianpublicbrandsexperiencingmorethanfivetimesthegrowthinscalecomparedtopre-Covidlevels.Strengthenedonlinedistribution,increasedmarketingefforts,andhigherinvestmentsinco-creationwithe-commerceplatformshavedriventhis.

Privatelabelshavealsoplayedamaterialroleindrivingonlinegrowth,expandingintokeycatego-ryandpricepointgaps.

Digitaldisruptorsareprojectedtooutpacetheoverallmarketgrowthwith35%annualgrowth,

reaching$10billionbyFY28fromthecurrentsizeof$2.4billion(seeFigure1).TheexpectationisthatthenumberofbrandsexceedingINR250croreinrevenuewilljumpfivetimesbyFY28,with

categoriessuchasexpressivewear,ethnicwear,andjewelryhavingmultiplescalebrands,whilecategoriessuchasathleisure/activewearwillseeasmallerbutequallyscalednumberofbrands.

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India’sDigitalFashionDisruptors

Figure1:At$2.4billion,digitaldisruptorsaccountforapproximately20%oftheIndianonlinefashionmarketandareexpectedtogrow

Digitaldisruptors,privatelabels,andnationalbrandsgrowingonline

Onlinefashionandlifestylemarket(in$B)

Digitaldisruptorstogrowfastinthenextfiveyears;growthtofavorscale

Digitaldisruptorsmarketbybrandsize(in$B)

CAGR

(FY19–23)

~$4B

~$11B

~$10B

~$2.4B

~30%

Unbranded(45%)

54%

Nationalbrands(22%)

PLs1(12%)

Digitaldisruptors2(21%)

23%

34%

37%

33%

(34%)~10brands

(41%)~55brands

(12%)~70brands

(14%)~140brands

(43%)~650brands

(32%)~1500brands

(19%)

(9%)

(9%)~15brands

(13%)~40brands

(18%)

FY19FY23FY23FY28

CAGR

(FY23–28)

~35%

>200Cr.

100–200Cr.

50–100Cr.

<50Cr.

1)Privatelabels(PLs)aremarketplace-ownedbrands;2)Digitaldisruptorshavesignificantonlinerevenue;3)BrandsizeismeasuredbytherevenueofthebrandinINRCrore;totalrevenueofallbrandsconvertedtoUSDBillionforoverallmarketsize

Sources:MCAfilings;VCCEdgeanalysis;SimilarWebanalysis;Bainanalysis

Disruptors:Drivenbyyoungcustomersinfragmentedcategories

ThegrowthofdigitaldisruptorswillbeprimarilydrivenbyGenZandmillennials,whohaveahighpropensitytobuyfashiononline.Websiteandappdataanalysisshowsthat70%to80%ofthetraffictodigitaldisruptorsoriginatesfromthesesegments,withGenZaccountingfor30%to35%

andmillennialsfor40%to45%ofthetotaltraffic.Consumerspendinganalysisshowsthat24%of18-to-24-year-oldsbuyfromdigitaldisruptorbrands,comparedtojust13%of45-year-oldsandolder.GenZandmillennialswillaccountforapproximately75%ofspendingondisruptorsbyFY28,upfromapproximately70%today.

Digitaldisruptorsarealsoaddressingyoungercustomersthroughrelevantassociations,forexample,stayingcurrentthroughmerchandisingbasedonthelatestpopculturethemesorcollaboratingwithenduserstoco-create“designsoftheweek”thattalktousersdirectly(seeFigure2).

TMRW|Bain&Company,Inc.

7

andhighquality

Purpose-drivenIspurpose-driven,eco-friendly,andmadeinIndiaMadeinINEco-friendly

SocialengagementAllowsself-expression1

ProductexcellenceHasaestheticappealandprovidesvariety

Variety

KeyspikesforGenZ

FunctionalReducescomplexity,iscomfortable/fit,valueformoney,

InternalmotivationEnsureswell-being3

India’sDigitalFashionDisruptors

Figure2:GenZcareaboutconfidence,fun,andwell-being,whilemillennialscaremoreabouteco-friendlyandself-expressivebrands

Youngcustomercohortsspikeonclearlydifferentneeds

KeyAssociationsKeyAttributesLeastimportantMostimportant

ExternalsignalingBoostsconfidence2

FunHelpstohavefun

Aesthetics

45+agegroupMillennialsGenZ

Notes:Axisrepresentsestimatedrankbasis0-10ratingforeachassociationandareaveragedacrossassociationgroups;Alsotestedfor:1)community;2)statussymbol;3)motivation,reducedanxiety

Source:Bainconsumerresearch(N=1101)

Digitaldisruptorshavemadetheirpresencefeltmoreincategoriesthatarefragmentedandhavealongtailofsellers.Itisherethattheiragilebusinessmodelshaveprovidedthesebrandswithanedge(seeFigure3).

Forexample,fashionaccessorieshashistoricallybeenafragmentedcategorywithfewnationalbrands.Thiscategorydemandsaverywiderange,whichcanbehardtomanage.Disruptorjewelrybrands

haveredefinedthebusinessmodelhere.Onerapidlyscalingbrandhaspositioneditselfasa“fastfashiondestination”forgoldjewelry.Withover17,000designs(andanincrementalapproximate1,000addedeveryquarter),thebrandstillrunsonclosetozerofinishedinventory.Reconfiguringthesupplymodelwithtechnologyhasmadethispossible.

Kidswearisanotherfragmentedcategorywithcomplexityarisingfromthenumberofoccasionstobeserved,multiplesizes,andtheneedtoprovidequalityproductsinacategorywithverylimitedwillingnesstopayapremium.Aleadingbrandinthisspacehasturnedthesechallengesintoanadvantage,creatingakidsweardestinationservingalloccasions.Depthincoreproductsenables

sharppricingalongwithgrossmarginmanagement.Atthesametime,full-funnelcustomerintentdataenablesflexibleinventorymanagement,thuskeepingturnsashighassixorseven,evenwithmorethan12,000products.Finally,thefullownershipofthecustomerjourneyenablestruecustomerlifetimevaluemaximization.

TMRW|Bain&Company,Inc.

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India’sDigitalFashionDisruptors

Figure3:Fewcategorieshavebeenabletodrivehighdigitaldisruptorshareofwalletowingtolowpresenceofnationalbrands

Shareofwalletfromdigitaldisruptors,ofdigitaldisruptorbuyers(%)

75%

55%

50%

40%

35%

35%

30%

30%

25%

Accessories

Expressive

Kidswear

Ethnic

Casual

Innerwear

Activewear

Formal

Footwear

~34%

~30%

~35%

~22%

~42%

~57%

~61%

~61%

~73%

<Shareofnationalbrandsandprivatelabels(%)

Note:AnalysisdoneforMyntra,Flipkart,Amazon,Ajio,TataCliq;Shareofwalletcalculatedbyaddingshareofwalletwithinasubcategoryacrossdigitaldisruptorbrandsforeachconsumerandaveragingresponsesacrossconsumersbysubcategory(N=1101)

Sources:Webscrapeanalysis;Bainconsumerdata

Unlockingthepotentialofdigitaldisruptors

Inrecentyears,favorablemacroeconomicconditionshavepropelledthescalingofmultipledigitaldisruptors.TheinitialgrowthphaseuptoINR50croreprimarilyrevolvesaroundestablishinga

product–marketfitanddevelopingastandoutproducttogenerategrowthmomentum.

Subsequently,brandsexperienceabreakoutphase,usuallybetweenINR50croreandINR100crore,facilitatedbyfundingthatenablesinvestmentsinassortmentexpansion,marketing,andchannel

expansion.

However,asbrandssurpasstheINR100croremark,theyoftenencounterchallengesin

sustaininggrowth.Thesechallengesariseduetounrelatedproductproliferationandinefficientmarketing,resultinginoperationalcomplexities.

BrandsthatsuccessfullybreakoutandachievemorethanINR200croreexhibitdisciplinedproductexpansion,structuredchannels,marketstrategies,andinnovativesupplychainmanagement.

CrossingthecomplexitybarrierbetweenINR100croreandINR200croreoftenleadstoacceleratedgrowthforthesebrands(seeFigure4).

Fashiondemandsaheightenedlevelofdisciplineduetotheeaseofenteringsubcategoriesthroughoutsourcedproduction,coupledwiththeinherentdifficultyinscalingwithinnewsubcategories.

Brandsoftenlosesightofsustainablegrowthandprofitabilitybyattemptingtobuildtechnology

9

India’sDigitalFashionDisruptors

Figure4:BrandsthatcanbreakthecomplexitybarrieratINR100–200croretypicallyseehighgrowthafterthat

Year-on-yeargrowthbydigitaldisruptorsize(FY19–FY23)

60%

55%

35%

30%

>200Cr.100–200Cr.50–100Cr.<50Cr.

Note:Cr.=INRcrore

Sources:VCCEdge;MinistryofCorporateAffairs;CapIQ;AnnualReport;SecondaryResearch

infrastructureforscalingorpursuingexpansionsintounrelatedcategoriesrequiringsubstantial

upfrontinvestments.Brandscanscalewhentheyprioritizeastrongfocusonproductdevelopmentandcustomer-centricstrategiesratherthanpursuingblanketchannelandbusinessexpansions.

Fundingtoshifttowardapparel

Inthelastfiveyears,thehighestinvestorinterestintermsofthenumberofcompaniesinvestedinandfundvaluewasobservedintheBPCsector,followedbyapparel(seeFigure5).However,itislikelyfundingwillshifttowardapparelbrandsasmorefashionbrandsdemonstrateapathtoprofit-abilityorscaledgrowth.

10

TMRW|Bain&Company,Inc.

India’sDigitalFashionDisruptors

Figure5:UnlikeinBPC,thelongtailofcompaniesinfashionstruggledtoattractsubstantialinvestment

BPCleadsinattractingfundingandhighinvestorinterestacrossmultiplecompanies

~100

Numberofcompaniesreceivingfunding

since2018

~80

~40

~25

~15

BPC

Apparel

AccessoriesandJewelry

Home/Home

Furnishing

Footwear

Totalfunding($B),

withouttop2

$0.95B

$0.43B

$0.15B

$0.07B

$0.02B

Toptwofunded

MyGlamm

Firstcry

Lenskart

Wakefit

Neeman’s

companies

Mamaearth

Virgio

Melorra

TheSleepCompany

Plaeto

Totalfunding

($B)

$1.35B

$1.37B

$1.73B

$0.20B

$0.04B

Note:ThedisclosedfundingdataconsideredwasreceivedbetweenJanuary2018andMay2023

Sources:Tracxn;Bainanalysis

11

Brandlearnings

Brandarchetypes

Analysisofthefinancialandoperationalmetricsofover150digitaldisruptorfashionandlifestylebrandsrevealsfivedistinctgrowthpatterns(seeFigure6).Thesearchetypesaredefinedbasedonrevenue,growth,profitability,marketing,andchannelfocusofbrands:

•Nichebrands:TypicallyuptoINR50croreinrevenue,andwith20%to50%growthdespitetheirlowbases.Manyofthesebrandshavenarrowproductrangesandveryfocusedmarketinginvestments.Approximately50%ofbrandsarenotfunded.

•Capital-efficientgrowthhackers:Approximately50%ofthesebrandsarealsonotfunded.

However,theyhavescaledtoapproximatelyINR100croreinrevenueandgrowfast,oftenat70%yearonyear(YoY),despitelimitedbuteffectivemarketingspending.Thesebrandsusuallyhaveafocusedproductrangewithsharpvalue-ledpricingandleanoperations.

•Investingforgrowth:Somebrandsprioritizerapidgrowth,typicallyabove70%YoYfromtheoutset,andoftenspendupto50%oftheirrevenueonmarketingandbrandawareness.Forthesebrands,it’scrucialtoachieveprofitabilitywithinadefinedtimeframebyreducingmarketing

investmentsasorganicgrowthgainsmomentum.

•Stars:TypicallybrandsthathavescaledprofitablytomorethanINR300crorewithgrowthabove50%YoYandpositiveEBITDAbetween5%and20%.Theirhistoricinvestmentsinasharpbrandandproductenabledthresholdscale.Thebrandtypicallyownsthecustomerviaastrongdirect-to-consumer(D2C)channel,whilefocusedtechnologyinvestmentsenablesmartpricing,rangeandinventorymanagement,andleanoperations.

•Questionable:Severalbrands,particularlythosegeneratingrevenuebetweenINR100croreandINR400crore,facestagnationorhighlossesintheirbusiness.Historicinvestmentsareinthe

sharpbrandandproduct-building-enabledthresholdscale.However,poorexecution(inefficientmarketingandlackofproductdiscipline)hashamperedprofitability.Thisfurtherhamperstheabilitytocontinuetoinvestincustomeracquisition.

TMRW|Bain&Company,Inc.

12

India’sDigitalFashionDisruptors

Figure6:Corecustomerandoperatingmetricsdiffersubstantiallyacrossarchetypes

Brandarchetypesdifferacrossmarketingandoperatingmetrics

Percentageof

digitaldisruptormarketshare

Niche

(6%)

Capital-efficientgrowthhackers

(6%)

Investingforgrowth

(16%)

Stars

(59%)

Questionable

(13%)

Marketingmetrics

UniqueVisitorsGrowth

Awareness

Conversion

Shareof

wallet(SoW)

Keytakeaways

15–20%

40

–45%

1

0–15%

1

0–15%

Smallbrandswithlimitedawareness;

thisdriveslowtrialsandshareofwallet

20–25%

45–50%

15–20%

~20%

Efficientlyconvertvisitstotrafficand

driveSoW;lessspendonnewacquisition

55–60%

45–50%

15–20%

15–20%

Advertisingledpushoncustomer

acquisition;yettoimproveconversion,SoW

35–40%

55

–60%

25–

30%

2

5–30%

Highbrandrecallandstrongcustomermetricsdownthefunnel,addressingmultipleoccasionstodriveSoW

20–25%

50–55%

15–20%

15–20%

Highawarenessdrivenbyhistoricbrandinginvestment,butunabletoconvertandretaineffectively;lessspendonnewacquisition

HigherthanaverageBelowaverageMedian

Sources:MCAfilings;VCCEdge;Tracxn;SimilarWeb;Bainconsumersurvey(N=1101);Bainanalysis

Fivekeytraitsofwinningbrandscanbesummarizedasfollows:

1.Sharpvalueproposition:Functionalexcellenceishygiene;winningbrandsneedtospikeonatleastonemoredimension

Inrecentyears,rapidlygrowingnewagebrandsacrosscategorieshavedevelopeddistinct

valuepropositions.Atthesametime,functionalaspects,suchasprice,comfort,andfit,aswellasproductexcellencefactors,suchasaestheticappealandvariety,havebecomehygienecustomerexpectations.

Forexample,arapidlygrowingwomen’sactivewearbrandemphasizesbodypositivityandconfidencethroughinclusivesizingandrelevantfitsforIndians.Baincustomerdatasuggeststhattheirspikesonwell-being,fun,andcomfortmirrortheexpectationsofcustomersfromthatcategory(seeFigure7).Thebrandcarriesthisforwardintomarketingchoicesbyeschewingbigcelebritiesinfavorof

relatablepeoplelikegyminstructors.Thethemeofmentalwell-beingisreinforcedbyfunuser-generatedcontentthathashighengagementonsocialmedia.

Anotherrapidlygrowingexpressivewearbrandanchorsonfunmemesbygivingexpressiontothemintrendingproducts.Thisbrandhasalsosuccessfullydrivenpremiumizationbytappingintothe

latestmediacontenttocreatebrandedmerchandisethatenablesyoungcustomerstoexpressthemselvesandtheiraffiliations.Analysisoftheirsocialmediatrafficsuggeststhatrelevant

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13

Apparel

Accessories

India’sDigitalFashionDisruptors

Figure7:Beyondhygieneneeds,brandsshouldfocusonafewspikeswhilecraftingtheirvalueproposition

Hygiene

needs

Self-related

needs

Community-

relatedneeds

Subcategory

Functional

Product

External

Inner

Fun

Social

Purpose-

excellence

excellence

signaling

motivation

Engegement

driven

Keysub

Quality/Price,

Variety,

Confidence,

Well-being,

Fun

Self-

MadeinIndia,

associations

Comfort/Size