A new report, ‘Navigating Volatility: Building Resilient Supply Chains in the Age of the Evolving Consumer’, paints a stark picture of the fashion industry in 2025. It highlights a market defined by rapid change, heightened consumer consciousness, and the urgent need for supply chain agility.

The report by Vector Consulting Group in partnership with NIQ (NielsenIQ), delves into the critical trends shaping the business world, with the fashion and apparel sector facing unique and formidable challenges. The message is clear: businesses must adapt or risk being left behind.

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The power of the personalized and the sustainable

The report's data-driven insights reveal a shift in consumer behavior. Personalization is no longer a luxury, but an expectation. Almost 20 per cent rise in demand for tailored products and services underscores the desire for individuality, particularly within the fashion realm.

E-commerce, unsurprisingly, continues its meteoric rise. A 35 per cent increase in online sales over the past two years, with apparel leading the charge, highlights the dominance of digital retail. But consumers aren't just buying online; they're buying consciously.

Sustainability has transcended the realm of niche markets, now a primary driver for 60 per cent of shoppers. The demand for eco-friendly fabrics and ethical production practices is reshaping the very fabric of the apparel industry. The fast fashion model, once a symbol of accessibility, is now under intense scrutiny.

A 15 per cent increase in online searches for ‘sustainable clothing’ and ‘ethical fashion’ signals a profound change in consumer values. Durability and longevity are eclipsing fleeting trends, forcing brands to rethink their production and marketing strategies.

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Supply chain under strain

The analysis reveals a 40 per cent increase in supply chain disruptions, a direct consequence of geopolitical instability and climate change. This volatility disproportionately impacts the complex, globally distributed fashion supply chain.

The report advocates for a paradigm shift from ‘push’ to ‘pull’ supply chains, driven by real-time consumer demand. This transition has proven particularly effective for fashion retailers grappling with volatile trends and overstocking, resulting in a 25 per cent reduction in inventory waste.

However, the report also highlights a 30 per cent increase in lead times due to raw material shortages and shipping delays, further emphasizing the need for robust and responsive supply chains.

Leading the charge

The report highlights two compelling case studies of Myntra and No Nasties. Myntra, the leading fashion e-commerce platform, is lauded for its successful implementation of AI-powered demand forecasting and agile supply chain strategies.

By leveraging NIQ's consumer insights, Myntra optimized inventory for seasonal collections, resulting in a 15 per cent reduction in stockouts and a 10 per cent boost in customer satisfaction. The platform's adoption of virtual try-on technology also led to a 20 per cent decrease in product returns, demonstrating the power of technology in enhancing customer experience and reducing waste.

No Nasties, the Indian sustainable fashion brand, is featured for its commitment to organic cotton sourcing and transparent supply chain practices. By partnering local suppliers and investing in renewable energy (RE), the brand achieved a 30 per cent reduction in carbon emissions while enhancing its market appeal among eco-conscious consumers. The implementation of blockchain technology to trace fabric origins further bolstered transparency and consumer trust.

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A roadmap for success

The report offers a clear roadmap for businesses navigating the dynamic landscape of 2025:

• Invest in AI-powered demand forecasting and virtual try-on technologies: Enhance supply chain agility and customer experience.
• Adopt sustainable and ethical sourcing practices: Align with the rising demand for environmentally responsible products.
• Leverage real-time consumer data: Optimize operations and mitigate supply chain risks.  
• Implement omnichannel strategies: Seamlessly integrate online and in-store shopping to meet evolving consumer preferences.

‘Navigating Volatility’ serves as a crucial guide for businesses, particularly in the fashion and apparel sector, striving to thrive in the complex and ever-changing marketplace of 2025. By embracing innovation, prioritizing sustainability, and understanding the evolving consumer, brands can not only survive but flourish in the years to come.

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Meta Description: Why do some celebrity fashion brands fail in India? Find out about the key challenges and the strategies needed for long-term success in the competitive apparel sector.

The allure of celebrity is undeniable. In India, where stars are practically deities, the idea of a fashion brand bearing their name seems like a guaranteed goldmine.

Yet, the reality paints a different picture. While global icons like Rihanna and Kylie Jenner have built formidable fashion empires, their Indian counterparts often struggle to achieve lasting success. Why does this star-studded venture so often lead to a dimming light in the Indian apparel sector?

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The short-term spark

The primary reason brands, or celebrities themselves, opt for this route is the promise of instant visibility. A famous face can catapult a product into the spotlight overnight, attracting attention that would otherwise take years to cultivate. This is particularly tempting in a fiercely competitive market.

Quick brand recognition: Celebrities bring a pre-existing fan-base and recognition, instantly lending credibility to a new venture.

Marketing leverage: Their social media presence and public appearances provide free and powerful marketing platforms.

Attract investment: Star power can attract investors and partners, boosting initial growth.

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However, this reliance on instant gratification often overshadows the crucial need for long-term brand building. In fact, the impact of celebrity endorsement is a double-edged sword. Brands like Rihanna's Fenty and Kylie Cosmetics demonstrate the power of authenticity and a strong product.

These celebrities didn't just lend their names; they were deeply involved in the creation and promotion, ensuring quality and relevance. These brands also focused on filling market gaps, offering inclusive ranges and innovative products that resonated with their target audiences.

Unsuccessful attempts in India

However, in India there a numerous cases of unsuccessful collaborations for example, Anushka Sharma’s Nush launched with much fanfare, Nush aimed to provide affordable and trendy clothing for young women.  However, the brand struggled to differentiate itself from established fast-fashion retailers.

Consumers criticized the lack of unique designs and perceived quality issues. This highlights the importance of creating a distinct brand identity and ensuring product quality.

Similarly, Deepika Padukone’s ‘All About You’ partnered and positioned itself as a comfortable and stylish brand for modern Indian women. Despite Padukone's popularity, the brand failed to make a significant impact in the crowded e-commerce market.

The brand lacked a strong USP, and was over shadowed by other e-commerce brands. This shows challenges of competing in a saturated market without a clear differentiator. Another example is Sonam Kapoor-Rhea Kapoor’s brand Rheson.

Designed to cater to modern women seeking sophistication, Rheson faced fierce competition from established fashion labels. While the brand had creative designs, it did not capture a large market share. This example shows how hard it is to penetrate an already well established market.

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The lack of design consistency and perceived quality issues eroded consumer trust. Overemphasis on the celebrity image, without a corresponding focus on product excellence, led to a disconnect with discerning consumers. And most importantly, the Indian market is very price sensitive, and if the product pricing does not match the product quality, customers will not buy.

The issue isn't necessarily the stars themselves, but rather the usage and positioning of their brands. Many Indian celebrity brands seem to lack a clear creative direction, resulting in generic designs and a diluted brand message.

Also, brands that fail to differentiate themselves from existing market players struggle to gain traction. Simply slapping a celebrity's name on a product is not enough. And brands must prioritize consumer needs and preferences, offering value beyond the celebrity's image.

Why stars keep shining

Despite the relatively low success rate, celebrities continue to be sought after for endorsements and brand collaborations. This is due to several factors:

The power of influence: Celebrities still hold immense sway over consumer behavior, particularly in India.

Social media dominance: Their online presence allows for direct engagement with millions of potential customers.

The pursuit of quick wins: Brands often prioritize short-term gains over long-term sustainability.

The aspirational value: Indian consumers still look up to celebrities and want to emulate their style.

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Therefore, for Indian celebrity fashion brands to achieve lasting success, they must establish a strong brand identity. Define a unique niche and offer products that resonate with a specific target audience. Invest in high-quality materials and craftsmanship, ensuring that products meet consumer expectations. And create a seamless and engaging customer journey, both online and offline.

They should move beyond short-term marketing gimmicks and build a sustainable brand with a clear vision. What’s more, consumers are mostly looking for authentic brands therefore, they want to see that the celebrity is truly involved in the brand.

While the allure of celebrity can provide a powerful launch-pad, it is not a substitute for solid business strategy and a genuine commitment to quality. By prioritizing these elements, Indian celebrity fashion brands can move beyond the fleeting spotlight and build lasting legacies in the competitive apparel sector.

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India's wedding industry, valued at almost $130 billion – nearly twice the size of the American market is a force to be reckoned with. With 8-10 million weddings taking place annually, it's no surprise that Indians are pulling out all the stops for their big day. As Jefferies investment bank reports, "In an otherwise value-conscious society, Indians love to spend on weddings, which could be disproportionate to their level of income or wealth."

This lavish spending creates a massive opportunity for various sectors, with fashion and apparel taking center stage. But just how big is this slice of the wedding pie, and who are the key players vying for a piece of the action?

Fashion's share of wedding industry

While precise figures on fashion's share within the Indian wedding market are hard to pin down, anecdotal evidence and expert opinions suggest it's significant. Consider this: a typical Indian wedding involves multiple events, each requiring a different outfit for the bride, groom, and close family members. From intricately embroidered lehengas and opulent sherwanis to dazzling saris and tailored suits, the demand for wedding attire is insatiable.

While the Ambanis and other ultra-rich families may set the bar with their multi-million dollar extravaganzas, the Jefferies report highlights a fascinating trend: Indians across all income levels prioritize wedding spending, often exceeding what might be considered proportionate to their wealth. The average luxury wedding can cost anywhere between $240,000 to $360,000, with the upper end of the spectrum soaring into millions . A significant chunk of this undoubtedly goes towards fashion.

The designer vs. branded conundrum
The Indian wedding wardrobe is a playground for both designer and branded garments. Designer wear, with its bespoke creations and intricate craftsmanship, caters to the affluent segment willing to splurge on exclusivity. Branded garments, on the other hand, offer a blend of style and affordability, making them accessible to a wider audience. Both segments present lucrative opportunities, with the choice often dictated by budget and individual preferences.

Ethnic wear commands a lion's share of the market, estimated to be upwards of 80 per cent. While western wear has made inroads, particularly for pre-wedding events, ethnic attire remains the heart and soul of Indian wedding fashion.

Metros lead, Tier II cities catching up
Metros like Delhi, Mumbai, Bangalore etc are home to a large concentration of high-net-worth individuals and are major drivers of luxury spending in the wedding industry. Designer boutiques and flagship stores of leading brands thrive in these cities.

Tier II cities like Chandigarh, Jaipur, Lucknow among others too are witnessing a rapid rise in disposable incomes and a growing aspiration for upscale weddings. This presents a significant opportunity for both designer wear and branded garment players to expand their reach and cater to this emerging market. While weddings in smaller towns and rural areas may be more budget-conscious, there's still a strong emphasis on traditional attire and festive dressing. This segment is primarily catered to by local artisans, smaller boutiques, and regional brands.

Despite the booming market, the Indian wedding fashion industry faces many challenges. Since the market is highly fragmented with a mix of established players, emerging designers, and local artisans competition is tough among them. While Indians are willing to spend on weddings, price remains an important consideration, especially for budget-conscious consumers. What’s more now there's growing awareness of the environmental impact of fast fashion, prompting a shift towards sustainable and ethical practices in the wedding industry.

However, the fact is, Indian wedding industry is a goldmine for the fashion and apparel sector. With its sheer size and growth potential, it presents a unique opportunity for designers, brands, and retailers to cater to a diverse and aspirational market. As Indians continue to splurge on their big day, the wedding fashion scene is poised for even greater heights.

Sabyasachi Mukherjee's statement, "India can become the champion of the global luxury market," may not be hyperbole. The Indian luxury market is experiencing a period of remarkable growth, driven by a booming economy and changing consumer preferences. A closer look at the stats, trends, and challenges reveals a market brimming with potential.

Numbers reflect the growth story

Indeed, Mukherjee's comments are backed by figures. India’s luxury market was valued at approximately $8.5 billion in 2023. The market is expected to grow at a robust compound annual growth rate (CAGR) of around 15-20 per cent over the next few years. And by 2027, it is projected to reach $18.3 billion, making it one of the fastest-growing luxury markets globally. Fashion and lifestyle segments are expected to lead growth, driven by increasing disposable incomes, changing consumer preferences, and a growing appetite for premium brands.

And what is boosting this growth is India’s thriving economy. It serves as a powerful catalyst for the luxury market's growth. A growing middle class with higher disposable incomes is pushing up demand for luxury goods and experiences. And India's young population is more receptive to global trends and aspirational brands, further helping the market to grow. This coupled with rapid urbanization is creating new hubs of luxury consumption, expanding the market's reach. And increased internet access and e-commerce platforms are making luxury products more accessible to a wider audience.

Fashion, lifestyle leading growth drivers
Fashion and lifestyle segment, particularly high-end apparel, accessories, and footwear, is leading the luxury market's growth. And consumers are increasingly seeking unique and personalized experiences, driving growth in luxury travel, hospitality, and fine dining. In all this, e-commerce and social media are playing a pivotal role in expanding the reach of luxury brands and influencing consumer choices. What’s more the aspiration for luxury is spreading beyond metros, creating opportunities in Tier II, III cities.

In terms of sectors, domestic or homegrown luxury brands are gaining prominence, catering to the growing demand for products that blend tradition with contemporary design. Bespoke luxury is also gaining traction as consumers are seeking unique and personalized products, creating. And with increasing awareness of ethical and sustainable practices, demand for luxury brands that prioritize eco-friendliness is also on the rise.

However, steep import duties make luxury goods expensive, limiting accessibility for a wider consumer base. And the prevalence of counterfeit products and poses a challenge to genuine luxury brands. The lack of adequate luxury retail infrastructure in smaller cities can is another bug bear that effects market growth.

Despite challenges, the Indian luxury market presents immense opportunities for both domestic and international brands. As the economy continues to grow and consumer preferences evolve, India has the potential to become a major player in the global luxury landscape. The key to success lies in understanding the unique dynamics of the Indian market and adapting strategies accordingly. Indeed, Mukherjee's vision of India as a "champion of the global luxury market" is not far-fetched. The current trajectory suggests a promising future. With a thriving economy, a young population, and a growing appetite for luxury, India is well-positioned to take center stage in the global luxury arena.