Fueling the Flame
This shift is driven by rising incomes, digital connectivity, and soaring aspirations. According to CRISIL, the Tier II and III apparel market, valued at $30 billion in 2021, is projected to soar to $74 billion by 2025, with a remarkable CAGR of 20.4%. In contrast, metros lag with a growth rate of only 8-10%.
Beyond Saris and Kurtas
Gone are the stereotypes of sari-clad women and kurta-clad men. Consumers in these towns are embracing diverse styles, with a growing appetite for fusion wear and Western trends. The premium segment is leading the charge, expected to grow by 22%, closely followed by the mid-price segment at 18%.
Even menswear, traditionally stagnant, is experiencing a 19% CAGR surge, driven by increased disposable incomes and social mobility.
Success Stories
Domestic brands are tapping into this potential. Ethnic wear giant BIBA, with its stylish yet affordable options, has built a loyal fan base in smaller towns. Founder Meena Agarwal sums it up perfectly: “We speak their language, literally and figuratively.” Online platforms like Myntra and Nykaa are bridging the gap, while hyperlocal brands catering to local tastes and offering personalized experiences are poised to thrive.
More Than Trends, a Cultural Shift
The fashion revolution in Tier II and III cities is not just about market growth; it’s about a cultural shift. As aspirations soar and technology connects these towns to the global fashion scene, consumers are no longer satisfied with hand-me-downs. They are discerning, demanding, and eager to embrace the latest trends.
The Future Lies Beyond Metros
The future of Indian fashion is not confined to glitzy metros. It’s about the quiet boom happening in smaller towns, where consumers are ready to rewrite the rules of style. Brands that recognize this potential and cater to their unique needs stand to reap the rewards of this burgeoning market.