India apparel retail sees shift in growth playbook

Wazir Advisors maps five-year trends across 70 brands.

Wazir Advisors has released its latest report, India Apparel Market Review: Dynamics and Direction 2020–2025, analysing 70 brands and retailers with a combined revenue of Rs 1,34,500 crore in FY25. The study tracks revenue growth, profitability and marketing intensity across segments, highlighting structural shifts reshaping organised fashion retail.

Value retail has emerged as the clear outperformer, clocking a 24 per cent CAGR between FY20 and FY25. Its share of the organised market rose from 18 per cent to 29 per cent, driven by rapid expansion into Tier 2 and Tier 3 cities, tighter inventory control and a consumer shift towards affordable fashion. The segment added around 2,500 stores during the period.

Discounting, however, has become entrenched. Average listed discounts on Myntra climbed from 28 per cent in 2020 to 43 per cent in 2025, with 60–73 per cent of high-volume styles sold at over 50 per cent markdown. This trend has significantly compressed margins across categories.

Meanwhile, store-led expansion is maturing in segments such as innerwear and global fashion, pushing brands to focus on premiumisation, higher revenue per store and omnichannel strategies. Ethnic retail remained resilient, sustaining PAT margins of around 10 per cent.

Startups recorded nearly ninefold revenue growth to Rs 1,868 crore in FY25 but remained loss-making, with PAT margins at minus 5.6 per cent.

“The India apparel market has grown meaningfully over the past five years, but growth has not translated proportionately into profitability,” said Rohit Bhatiani, Executive Director, Wazir Advisors.