Get ready for a whirlwind ride through the fashion world’s crystal ball! In 2024, the fashion industry will don its shades—global uncertainty might loom, but guess who’ll shine as the silver lining? That’s right, India will be rocking it! Brands will act like chameleons, adapting and showing off their agility. Sustainability will emerge as the superhero, greenwashing will come under more scrutiny and personalisation will take centre stage to efficiently address customer needs. Bricks-and-mortar stores will be back like a boss, while AI is set to entrench itself even further within business operations. Let’s dive into the key trends set to define the fashion scene in 2024!
1. Focus on hyper-personalisation in retail
In 2024, personalisation will soar to new heights. Brands will renew their efforts to craft tailored shopping experiences, whether customers are shopping online or visiting stores, using AI and ML for e-purchases or in-store visits. As per a Deloitte report, 90 per cent of customers find personalised advertising attractive and 80 per cent are more likely to buy from a company providing personalised experiences.
The idea behind hyper-personalisation is to personalise every customer touch point, moving beyond remembering names or past transactions. Understanding and anticipating needs will take centre stage. The wealth of available data will enable this hyper-personalisation. To create detailed customer profiles, companies will employ advanced AI algorithms to study social media activity, tastes and preferences and lifestyle choices in addition to past purchases.
For instance, in online shopping, cart abandonment is a real headache. But hyper-personalisation can help here by reminding customers about their abandoned carts and sweetening the deal with personalised incentives. Loyalty programs too provide personalised rewards and discounts will be used by brands to solidify the bond between retailers and their customers.
The truth is that most customers in 2024 and going forward, expect a highly customised experience, whether they’re browsing in-store or online.
2. India – the silver lining in the cloud
According to a report by McKinsey & Company, in 2024, the most prominent sentiment among fashion industry leaders is uncertainty, which stems from the expectation of slow economic growth, ongoing inflation and low consumer confidence. According to the International Monetary Fund (IMF), global growth is expected to decline to 2.9 per cent in 2024 compared to 3 per cent in 2023. This marks one of the lowest growth rates in decades. Advanced economies are expected to experience a decline, dropping from 2.6 per cent growth in 2022 to 1.5 per cent in 2023 and 1.4 per cent in 2024.
However, the report states that amidst global challenges, India, where consumer confidence hit a four-year high in September 2023, brings in a ray of hope. As per McKinsey’s Global Economics Intelligence survey, around 85 per cent of executives from India stated that things have got better in the last six months.
As demand from the United States and Europe stagnates, Indian garment exporters will look to explore domestic markets for new sales. The potential for growth in the domestic sector is immense.
India has emerged as a vibrant hub for the fashion industry due to its rapidly expanding middle class, robust economic fundamentals, rising disposable income, growing manufacturing sector, rising tech-savvy population and strong government support. Brands are poised to direct their attention towards India increasingly.
India’s nominal GDP, measured in USD terms, is projected to escalate from US $ 3.5 trillion in 2022 to US $ 7.3 trillion by 2030. This rapid economic growth trajectory would result in the size of the Indian GDP exceeding the Japanese GDP by 2030, positioning India as the second-largest economy in the Asia-Pacific region.
As per the 2023 Wealth Report by Knight Frank, India is expected to witness a significant rise of 58.4 per cent in ultra-high-net-worth individuals (UHNWIs) – individuals with a net worth exceeding US $ 30 million – within the next five years, reaching an estimated count of 19,119 by 2027. This presents substantial opportunities for both local and global brands to capitalise on this growing market.
Meanwhile, the domestic apparel market in India is forecasted to hit US $ 100 billion by 2025. This surge in demand presents a golden opportunity for global and local apparel brands to amplify their market presence in India.
India’s fashion landscape is already witnessing a remarkable rise in homegrown labels and brands that embrace design, art and size inclusivity while staying true to their roots. Over the last decade, Indian consumers have noticeably shifted towards supporting local enterprises and embracing their cultural heritage.
3. Emerging dominance of e-textiles in smart wearables
Smart Textiles include such textiles and their ensembles which are always responsive and adaptive at times. However, the current market trend is towards the adoption of e-textiles. Their widespread applications can be found in the health and wellness sector followed by sports and leisure. Furthermore, within e-textiles, development is ongoing for making textiles that get rid of any hard goods (metals/alloys/plastics/etc.). One can find increasing usage of conductive fibres and yarns over conductive inks and polymers. The lab scale research in the area of textile-based batteries is expected to be adapted by the e-textile ensembles conventionally powered by external batteries. On the other hand, amalgamation of diverse materials in such smart wearables draws critical attention to their end-of-life steps (recycling, disposal, etc.), when it comes to addressing the Sustainable Development Goals.
4. Embracing sustainability, rental emphasis and greenwashing scrutiny
In 2024, sustainable fashion will continue to evolve. Fuelled by increasing consumer interest in transparency, additional legislations around the world are being introduced to hold major fashion companies accountable for their environmental and social impacts and thus the fashion dynamics are undergoing noticeable changes.
This awakening isn’t just a fleeting trend; it’s a steadfast movement set to gather even more momentum in the coming years. The focus of brands will be on 7Rs — Reduce, Reuse, Recycle, Research, Repurpose, Repair and Rent — to promote responsible consumption and production practices.
There has been an increase in demand for eco-friendly fabrics, rental options, upcycling and vintage fashion. A study by trend forecasting company WGSN identifies major activities happening by the year 2024-25 such as lower-impact circular synthetic fills, certified ethical down and feathers, alternatives to animal wool and insulations derived from plant-based fibres.
The availability of rental options is also expanding fast as consumers become increasingly mindful of their decisions. There’s been significant growth, particularly during wedding or festive seasons. The digital revolution and the rise of e-commerce have made rentals easily accessible.
With abundant raw materials available, there’s also immense potential for the growth of upcycling in the next five years. Brands like Doodlage, RaasLeela, The Second Life and Patch over Patch are leading this fashion movement. Upcycling isn’t merely a trend—it’s endorsed by the EU as one of the most efficient and cost-effective methods for businesses committed to sustainable fashion.
Innovations like 3D knitting machines, which significantly minimise fabric waste and blockchain technology which ensures supply chain transparency, will see widespread adoption.
In 2024, there will be increased scrutiny on greenwashing practices – a practice where companies give a false impression of their environmental impacts or benefits. A recent report by the European Commission revealed that after screening sustainability claims in the textile, garment and shoe sectors, around 39 per cent of such claims stand a chance of being proved as false or deceptive.
As we gaze into the future of the fashion industry, one thing is clear—sustainability remains a key focus of the fashion landscape in 2024.
5. Colours that will dominate the fashion scene – Barbie the influencer
The upcoming trend in the fashion industry for 2024 is the prominent use of vibrant and daring colours. Hues such as fuchsia, yellow and emerald green are expected to maintain their popularity amongst fashion-conscious consumers. Furthermore, the trend of monochromatic outfits, featuring a single, impactful colour, is expected to gain traction. Opting for a clean and modern aesthetic remains a favourable choice.
In the world of fashion, colour transcends its aesthetic function; it possesses the ability to communicate emotions and set moods, underscoring its significance within the industry.
For 2024, Pantone has named ‘Peach Fuzz’ as the colour of the year, describing it as a soft and subtle peachy hue. This selection goes beyond aesthetics, as Pantone attributes the choice to the colour’s ‘all-embracing spirit that enriches mind, body and soul’. In acknowledging the prevalent challenges and turmoil in many people’s lives, ‘Peach Fuzz’ is characterised as a hue that embodies a ‘heartfelt kindness’.
For apparel and fashion accessories, the peach hue conveys a message of tactility and will work well with suede, velvet, quilted and furry textures, as the colour has the ability to be ‘luxuriously soothing and soft to the touch’.
‘Peach Fuzz’ adds a comforting presence and aims to bring ‘a feeling of tenderness and communicating a message of caring and sharing, community and collaboration’.
While talking about colours, it is pertinent to mention the impact the colour pink has had on the fashion industry. So, listen up all fashion enthusiasts, business owners and aficionados!
Who could have predicted the global pink phenomenon that ensued after the official release of the Barbie movie in July 2023? It seems pink has made a triumphant comeback—or perhaps it never really left!
From pink shoes to bags, swimsuits and umbrellas, the world has been immersed in a sea of pink. People donned shades of pink to watch the movie and the upcoming year is poised to be painted in various hues of this vibrant colour.
The Barbie trend has not only met expectations but has transcended the confines of the fashion industry. Thanks to Barbie’s substantial marketing budget, the iconic brand has forged impressive collaborations even outside the realm of fashion. More than six months post-release of the movie, the allure of pink remains strong and shows no signs of slowing down!
6. Seizing opportunities in Adaptive clothing, Toys and Sneakers
The World Health Organization (WHO) reports that there are presently more than 1 billion individuals globally living with various forms of disability. This figure is expected to rise in the future due to factors like aging population and the increasing impact of chronic illnesses. Moreover, according to the United Nations, the worldwide population aged 60 years or older is estimated to reach 2.1 billion by 2050. The market for adaptive clothing is therefore huge.
Talking about India, the Registrar General and Census Commissioner of India (RG & CCI), in the 2011 census, reported that out of India’s 1.21 billion population, approximately 2.68 crore individuals were identified as ‘disabled’, constituting about 2.21 percent of the total population. By 2022, this number is estimated to have risen to approximately 3.49 crore.
In India, millions of individuals who cope with disabilities face a range of physical, sensory and cognitive obstacles. They encounter challenges in finding apparel that meets their specific needs. Even though this population is huge, the brands or retailers catering to this population are very less. The global market for adaptive clothing which is forecast to be worth US $ 400 billion by 2026 offers plenty of opportunities.
Similarly, India also boasts huge potential in both toy production and consumption with a population exceeding 1.4 billion, where 27 per cent are under the age of 14. According to reports, there are more than 9,600 registered MSME toy manufacturing units and 8 GI (geographical indication) toy clusters in the country. Some of the subsidies and concessions offered by the government to the toy manufacturers in these clusters are: a 30 per cent capital subsidy on fixed asset investment, a 5 per cent interest rate subsidy on loans up to Rs. 75 million, 100 per cent stamp duty and land conversion charge waivers, Rs. 2 per unit electricity tariff subsidy, 50 per cent rent subsidies at SEZs and freight subsidies for road and rail transportation.
In India, millions of individuals who cope with disabilities face a range of physical, sensory and cognitive obstacles. They encounter challenges in finding apparel that meets their specific needs. Even though this population is huge, the brands or retailers catering to this population are very less.
In the toy sector, there’s ample space for innovation, particularly in making electronic toys that enhance the learning experience of school children in Math and Science. India’s strong IT and education sectors provide a perfect platform to harness expertise and develop unique, interactive products tailored for this specific audience.
Similarly, over the past 4-5 years, sneakers have emerged as the most appealing non-apparel lifestyle product category amongst the youth. According to various international research reports, the worldwide sneaker market value is US $ 86.86 billion, and with around a CAGR of 6.8 per cent, it is expected to reach US $ 139.8 billion by 2032. With regard to India, revenue in the sneakers segment amounts to US $ 3.01 billion in 2023. The market is expected to grow annually by 5.88 per cent CAGR during 2023-27. Compared to the Western world, sneaker culture arrived a bit late in India, but now it’s on an upward trajectory.
7. Bricks-and-mortar retailing is back on track
In just three years of almost losing the battle to e-commerce players and the pandemic, physical retailers in India are making a strong comeback.
As per the findings of a report by Deloitte India and the Shopping Centre Association of India (SCAI), the organised bricks-and-mortar retail sector in India is expected to register a Compound Annual Growth Rate (CAGR) of 17 per cent between the years 2022 and 2028. This robust growth trajectory is propelled by various factors, including the increasing levels of disposable incomes among consumers, the ongoing trend of urbanisation and an escalating demand for both convenience and enhanced shopping experiences.
According to reports, Reliance Retail is gearing up to launch Fashion World by Trends, a value apparel retail chain, in Tier-2, Tier-3 and smaller towns. This will mark Reliance’s debut into rural and small-town markets. This expansion will primarily rely on the franchise model, with aim to set up more than 500 stores, positioning themselves in direct competition with established rural-focused chains such as V-Mart Retail.
Madame, a womenswear brand under Amar Clothing Pvt. Ltd., aims to solidify its retail presence by adding 30 new stores across India by 2024. Meanwhile, the direct-to-consumer (D2C) menswear brand, DaMENSCH, plans to inaugurate 100 stores by the end of 2024.
Lifestyle, part of the Landmark Group, intends to expand by opening approximately 50 new stores in India within the next three to four years. Devarajan Iyer, Executive Director and CEO of Lifestyle, stated that smaller markets offer substantial growth opportunities for the brand.
Grasim Industries’ textile division plans an expansion in smaller cities and towns, aiming to establish around 100-120 retail stores in the next couple of years. American retailer Gap, in partnership with Reliance Retail, is set to introduce over 100 stores across India.
Aditya Birla Fashion and Retail Ltd. (ABFRL) is also reportedly planning to launch the stores of the French luxury retailer Galeries Lafayette in India. ABFRL plans to open two flagship stores – one in Mumbai by 2024 and another in New Delhi a year later – housing over 200 luxury and designer brands.
As per KPMG report, ‘Customer Experience – key to sustained value creation’, the main motive behind customers shopping in bricks-and-mortar stores is the chance to touch, feel and experience the products personally before purchasing them.
In the fiercely competitive retail industry, it is tough to stand out online. However, a bricks-and-mortar store provides retailers with the opportunity to create a highly engaging brand experience It’s clear that despite the surge in e-commerce, brands are set to prioritise brick-and-mortar stores in 2024 and beyond.
8. Key Consumer Drivers in 2024: Travel, Outdoors, Influencers
The consumer landscape is witnessing a massive resurgence in travel, marking the most significant uptick since pre-pandemic times. However, alongside this excitement, there is a notable shift in consumer values that are directly altering their expectations.
Despite an enduring focus on shopping, consumers now prioritise experiences over possessions. For instance, LVMH recently purchased luxury travel company Belmond with plans to make traditional luxury travel less about opulent hotels and accommodations and more about one-of-a-kind experiences since today’s consumers care more about creating an Instagram-able memory than purchasing the hottest new product.
Malls, for instance, are bidding adieu to the conventional product-centric retail model and transforming into experiential centres. Designers such as Anita Dongre are pioneering this shift by establishing showrooms where customers can immerse themselves in the product, complete with apparel, footwear, jewellery and other accessories giving a perfect look, in order to create memories and make a purchase if they choose.
Many malls across India including DLF, Palladium and Ambience, incorporate ‘betterment zones’ that prioritise relaxation and mindfulness over a continuous shopping atmosphere. This shift reflects a broader trend towards blending commerce with immersive and enriching experiences in various industry landscapes. Brands and retailers must adapt to this new reality by revisiting their distribution and category strategies, aligning them with the emerging consumer dynamics.
Evolution of Influencer Dynamics: The face of influence is undergoing a transformative shift, urging brand marketers to revisit and update their influencer engagement strategies. A fresh cohort of creative personalities is capturing the attention of audiences and in order to navigate this landscape in 2024, brands need to forge different types of partnerships with influencers, placing a heightened emphasis on video based content.
In addition to this, a willingness to relinquish some creative control will be essential for brands aiming to authentically connect with their target audience through influencers.
Redefining Outdoor Lifestyles: The demand for technical outdoor clothing and the rise of the ‘gorpcore’ trend (in which outerwear typically designed for outdoor recreation is worn as streetwear) signify a broader consumer mindset for embracing a healthier lifestyle. The trend gained momentum due to the pandemic. Once lockdowns began easing, people worldwide eagerly sought outdoor experiences, wanting an escape from the restrictions. The element of functionality fused with the desire to look cool and effortless drives the popularity of this trend.
In the coming year, one can expect a surge in outdoor brands launching lifestyle collections to cater to this evolving preference. Simultaneously, lifestyle brands are expected to incorporate technical elements into their collections, blurring the traditional boundaries between functionality and style.
The collaboration between The North Face and Gucci marked a significant milestone as one of the initial major partnerships blending lifestyle and outdoor aesthetics. Since then, a trend of collaborations influenced by performance footwear have emerged, featuring notable pairings such as On and Loewe, Hoka and Moncler and the collaboration between Vibram, known for barefoot shoes, and Balenciaga.
In apparel industry, Jil Sander and Arc’teryx collaborated on a collection, infusing sportswear elements into mountain gear. Additionally, Adidas and Moncler joined forces to create a capsule collection comprising puffers and track jackets. These partnerships have propelled the gorpcore trend, gaining traction with celebrities like Kendall Jenner and Bella Hadid who stylishly combine high-end luxury fashion with outdoorwear and hiking shoes.
This trend is not limited to high-end brands, with mid-market labels also embracing the outdoors. H&M’s summer 2023 ‘Move’ collection featured water-repellent parkas and convertible hiking trousers. Inditex’s brand Oysho, specialising in loungewear and activewear, incorporated hiking boots into its permanent range and introduced a dedicated hiking collection for women.
The outdoors are being reinvented as a lifestyle choice and brands should proactively respond by including technical and stylish elements into their product offerings to align with this growing consumer trend.
9. Fashion brands to woo Gen Z and Gen Alpha
Gen Z, the age group born between approximately 1996 and 2012, is on track to become the fastest-growing generation in terms of spending power. It’s evident that the industry has taken notice, with Gen Z becoming one of the main points of discussion in corporate boardrooms.
There are more than 116 million Gen Z consumers in India, stated the Market Research Society of India (MRSI), referring to data from research firm Kantar in June 2023. “This population is high on individualism, low on regrets and more self-appreciating. They are also known to give significantly higher importance to their personal appearance, as compared to other age cohorts,” said MRSI.
Last year, Walmart-owned online retailer Myntra introduced FWD, an immersive fashion experience tailored for Gen Z on its platform. A top company executive mentioned that the objective is to target the demographic cohort succeeding Millennials and attract 10 million new Gen Z customers within the next two years.
Skechers, a sneaker brand targeted at Gen Z and youth, saw India emerge as the ‘highest earner in terms of sales’ in Asia-Pacific in the April-June 2023 quarter.
In 2024, the focus of fashion brands is poised to expand beyond just targeting Gen Z to also encompass Generation Alpha, those born from 2010 to 2024. While Gen Z remains a significant demographic in terms of spending power, the upcoming Gen Alpha cohort presents a new avenue for brands.
The Gen Alpha identity is strongly linked to technology, a connection that accelerated during the pandemic, seamlessly integrating tech into nearly every facet of their lives. According to a study by marketing transformation agency Razorfish, over 40 per cent of Generation Alphas have embraced tablets before reaching the age of six years and more than half have engaged with video game consoles by the age of seven. The percentage of Gen Alphas prioritising the latest technology is over double than that of Gen Z, standing at 63 per cent compared to 31 per cent, respectively.
Moreover, with increased internet access, Gen Alpha tends to favour brands typically aimed at adults rather than those considered more ‘kiddie’, a trend observed even before they enter their teen years. Sociologist Mark McCrindle, known for coining the term ‘Alphas’, projects that approximately 2.5 million Alphas are born worldwide each week, estimating their population to reach 2 billion by 2025. Their market potential is immense. For instance, the childrenswear market is already huge, reaching US $ 260.6 billion in 2021, according to IMARC Group.
10. AI will continue to shape the fashion world
In 2024, AI will continue to define how we create, design and consume fashion. Some of the ways in which AI is expected to transform the fashion industry is through demand forecasting, trend forecasting, personalised sizing recommendations, virtual try-ons, fit predictions, supply chain management and enhanced inventory management. AI-powered virtual styling tools and image consulting have emerged as revolutionary solutions, helping customers make informed decisions and boosting e-commerce sales significantly.
AI will also aid in outfit designing, a creative process. AI can help expedite the design process and make it more effective and efficient. AI algorithms can analyse massive amounts of data from various virtual sources and can even autonomously generate new designs, amplifying creativity and expediting the design phase. Moreover, AI can help identify suitable influencers for fashion brands by analysing social media data, follower demographics, engagement rates and content relevance. With AI algorithms, brands can pinpoint influencers aligned with their target audience, fostering more impactful influencer collaborations for effective marketing campaigns.
Overall, brands will continue to harness the power of AI to streamline operations, foster innovation and create personalised experiences, benefiting both businesses and consumers.
(With exclusive inputs by Anjori Grover Vasesi)
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