INDIA APPAREL MARKET WAZIR ADVISORS APPAREL MARKET REVIEW 2020–2025 FASHION RETAIL VALUE FASHION DISCOUNTING ORGANIZED RETAIL TIER 2 AND TIER 3 CITIES PROFITABILITY STORE EXPANSION E-COMMERCE PREMIUMIZATION ETHNIC WEAR STARTUP BRANDS MARKE NATIONAL
NEW DELHI, INDIA
By IFAB MEDIA - NEWS BUREAU - March 2, 2026 | 72 1 minute read
The report, based on a study of 70 brands and retailers with combined revenues of INR 1,34,500 crore in FY25, tracks five years of performance across nine retail categories. Among the key findings:
- Value fashion has been the standout winner of the past five years, growing at a 24% CAGR and nearly doubling its market share.
- Structural discounting: with 60-75% of styles listed at 50%+ markdown - is compressing margins across most segments.
- Distribution-led growth is saturating in several categories; the next growth lever will have to be premiumization and store productivity.
- Ethnic retail remains the most consistently profitable format, while startups continue to scale at the cost of profitability.
