Digital retail and quick commerce fueling India's fashion market expansion

The Indian apparel and footwear sector has emerged as a primary driver of global growth, ranking fifth worldwide with a 3.70 percent increase in 2025. According to market intelligence company Euromonitor International, the domestic sportswear segment is significantly outperforming the broader market, fueled by a young, tech-savvy population and a burgeoning urban middle class.

In 2025, sportswear sales in India rose by 11 percent to reach 9.50 billion dollars. This trajectory is expected to maintain a compound annual growth rate (CAGR) of 10 percent through 2030. The shift is largely attributed to longevity and wellness becoming new status symbols among Indian consumers, particularly Gen Z, who are increasingly prioritising fitness-oriented lifestyles.

Digital infrastructure and quick commerce accelerate expansion

The rapid expansion of the Indian market is being supported by modern retail infrastructure and the rise of digital retail platforms. Influencer-led commerce and personalisation are driving engagement, while the emergence of quick commerce platforms has provided a new distribution channel for value fashion offerings from established companies.

According to Euromonitor senior global insight manager for fashion, Marguerite Le Rolland, the definition of value is shifting in the region. Le Rolland stated: “Value now extends beyond price and intrinsic product features to include durability, versatility and emotional connection.” Brands that align with these shifting priorities are finding significant growth opportunities within the Indian landscape.

Asia Pacific maintains global dominance

While India shows the most aggressive growth trajectory, the wider Asia Pacific region remains the largest for apparel and footwear, valued at 641 billion dollars. China continues to hold its position as the second largest sportswear market globally, valued at 61 billion dollars. However, the Indian market’s potential for further penetration remains high due to rising demand for comfortable and versatile clothing.

E-commerce continues to be a dominant force, representing 32.40 percent of total apparel and footwear sales in 2025. In India, where mobile-first consumption is the norm, the integration of generative AI (GenAI) and agentic AI is expected to reshape how consumers interact with brands. These technologies are increasingly being used to offer the convenience and trust that modern shoppers expect.

As fashion remains an emotional investment, successful retailers in the Indian market will likely be those that use AI to enhance convenience without replacing the human touch. Building brand loyalty through community-led and culturally relevant initiatives remains a critical strategy for executives navigating this fast-evolving market.