India retail data: 90% Global brands active in India; Lifestyle market pegged at 130Bn$

Big ideas from Bain's report on India's retail market.

India is emerging as a significant hub for global lifestyle brands, with 90% of the top 50 global brands active in the country.

Here are the big ideas from a recent report by Bain and Myntra on how consumers shop, search vs browsing behavior and how tier-2/3 is driving the next growth.

• India’s lifestyle market is pegged at $130Bn and 80% of it is fashion!

• 90% of the top 50 global brands are active in the country.

• Revenue Growth: Approximately 50% of these global brands have more than USD 30 million in revenue from India.

Market Growth:

• Brand Expansion: Over the past year, more than 60 varied lifestyle brands have either launched or planned to launch in India. This includes large-scale brands with global revenues of over USD 1 billion, mid-scale brands, luxury brands, and specialized East Asian brands.

• Online Sales: The online channel is the preferred entry point for global brands in India, offering access to 175 million e-lifestyle shoppers, granular customer insights, and comprehensive operational support.

• Tier-2 City Penetration: Brands like H&M and Mango have successfully used online platforms to expand their reach into tier-2 cities, overcoming operational challenges in the Indian market.

Market Composition:

• E-Lifestyle Market: India’s e-lifestyle market has matured, with a diverse shopper base:

  • 2 in 3 online shoppers are from cities beyond the top 50.

  • 1 in 2 are from non-affluent segments.

  • 1 in 3 are Gen-Z shoppers.

Future Growth Projections:

• Market Size: India’s lifestyle market is currently valued at USD 130 billion, with fashion accounting for nearly 80% of it.

• CAGR: The market is expected to grow at a compound annual growth rate (CAGR) of 10-12%, reaching USD 210 billion in the next five years.

Key Drivers:

• Income Growth: Rising income levels and a growing fashion-forward, digital-native Gen-Z shopper base are key factors driving demand.

• Organized/Branded Products: There is an increasing demand for organized and branded lifestyle products, contributing to market growth.

• Easing Inflation: The growth in e-lifestyle will be further supported by the easing of short-term inflationary pressures.

How do they shop

Browse or search?

This report highlights India’s growing significance as a major destination for global lifestyle brands, with strong online sales and a diverse, expanding consumer base driving market growth.