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Challenges for fashion retail in India


In the ever-growing globalised world, the Indian textiles and apparel industry is linked to both the Indian and global economy. The Indian economy is one of the fastest growing economies of the world and is witnessing major shifts in consumer preferences. With increasing disposable income, higher living standards, increasing brand consciousness, exposure to trends through media and internet, the Indian fashion industry is positioned to grow at a promising rate.

Despite the lucrativeness of the apparel industry, it is facing certain challenges as mentioned below:


11 Infrastructural Bottlenecks and Efficiency


Inadequate Infrastructure such as poor conditions of roads, highway, etc., is one of the challenges faced by Indian fashion retail industry resulting in major roadblock in its growth story. India to grow to its fullest potential would have to invest heavily in infrastructure such as proper connectivity of roads, inland waterways, etc.

However, certain steps have been taken to address the infrastructure issue. The implication of GST is expected to solve the hassle of documentation and long waiting queues at check posts for inter-state transport of goods. E-way bills are implemented for trial period, which can reduce wait time at checkpoints which is the main reason for delayed shipments. If implemented wisely, e-way bills have potential to reshape the Indian logistic industry and make transport of goods easier and faster.

1. Infrastructural Bottlenecks and Efficiency

22 Changing Consumer Behaviour

In the business environment, consumer is the king. With the increasing media and internet exposure, consumer is now well informed about fashion trends and demand. To ensure sustainable growth, it has become inevitable for the retailers to cater to the consumer as per their demand and preferences. Consumers have become more adaptable to changein fashion trends, thus it hasbecome challenging for retailers to stay upbeat with changing demands of customers.

2. Changing Consumer Behaviour

33 Fast Fashion

A few years ago, shopping of new clothes in India was majorly associated with major festivals or with family weddings. But times are changing rapidly, witnessing a generation of shoppers which are becoming part of the world of fast fashion. Fast fashion is a trend associated with the designs that move quickly from the catwalk to showroom for the consumers. The increasing disposable incomes coupled with consumer’s aspiration to follow global fashion have fuelled the growth of fast fashion stores in India. International brands offering fast fashion are forcing Indian brands to rethink seasonal offering to the consumers. Domestic brands are adapting their business model to compete with fast fashion trends and international brands. It is a challenge to stay upbeat with the growing demand of fast fashion among consumers and with the stiff competition by international brands in this trend.

3. Fast Fashion