According to data from RedSeer Strategy Consultants, in FY2024, the fast fashion sector (currently valued at $10 billion) is expected to see a significant growth rate of 30-40 per cent in the country.

In contrast, the broader fashion sector in India saw a modest 6 percent (y-o-y) growth.

The fast fashion sector offers affordability with constant access to trendy styles, making it a game-changing experience.

"Despite a year of sluggish consumption, fast fashion stands out as one of the few thriving segments in India's retail market," said Kushal Bhatnagar, Associate Partner, RedSeer.

However, India's fast fashion market, though substantial, is small compared to global giants like Shein, which is 3 times larger.

Based on price point the industry can be classified into three segments: ultra-value, mid-value and premium. Each segment requires different business model strengths.

According to the report, the mid-price brand segment will see maximum penetration of brands, leveraging low-entry barriers and experimental consumer behavior to drive growth.

Additionally, brands with unique and value-add positioning are expected to appeal strongly to customers, the report noted.