India, China to emerge as biggest markets for sustainable fashion by 2030
India and China, the two most populated countries in the world, are going to be the most coveted markets by 2030. As the current global economic trend moves towards the next decade, it is clear that the US will be replaced by China as the world’s biggest apparel market and India will not be far behind
India and China, the two most populated countries in the world, are going to be the most coveted markets by 2030. As the current global economic trend moves towards the next decade, it is clear that the US will be replaced by China as the world’s biggest apparel market and India will not be far behind.
Though China’s economy has slowed in recent years India China to emerge biggest markets for sustainable fashion creating a disparity in supply-demand but the overall market sentiment remain positive with high consumer confidence. According to a study by Fung Global Retail & Technology, consumer spending trend remains high for kids’ wear and casual wear categories. Meanwhile, recent reports by Nielsen Global Survey of Consumer Confidence showed India’s confidence is up three points from the previous quarter. “The Union Budget revealed the government’s commitment to fiscal consolidation which will pave the way for sustained and inclusive growth. In following months an improvement in various macroeconomic indicators was evident, and the government seems to be on its way to achieving its objectives of low inflation, low interest rates and high GDP growth—a scenario optimal for improved consumer spending” says Roosevelt D’Souza, MD, Nielsen India.
Changing retail landscape to create future opportunity
China’s positive economic outlook might result from its “One Belt, One Road” initiative, an economic and diplomatic program that calls for major investment in the region’s trade routes. In a recent McKinsey podcast, senior partner Kevin Sneader explained “There are two parts to this: the belt and the road,” he said. “The belt is the physical road, which takes one from here all the way through Europe to somewhere up north in Scandinavia. What they call the road is actually the maritime Silk Road, in other words, shipping lanes, essentially from here to Venice. Therefore it’s very ambitious, covering about 65 per cent of the world’s population, about one-third of the world’s GDP, and about a quarter of all the goods and services the world moves.”The $100 billion initiative would help fuel growth for China after its economy has seen a period of slowing down. In another positive trend, China’s apparel market is becoming more organised as the top 10 brands in activewear, jeanswear and casualwear, have been increasing their market share significantly. Thus, making the market more competitive and quality driven.
India on the other hand witnessed significant growth in organised retail driven by increasing consumer preference for specialty, department, and hypermarkets and increasing lifestyle spend. Over the last decade, almost all global brands have made a beeline for India market changing the retail landscape of the country.
Sustainable fashion emerges strong
An in depth analysis of both China and India reveals consumer’s changing perception and increasing awareness for sustainable fashion and natural fibres. According to Indian Consumer Survey Fully 73 % say they “could spend the rest of their life” in the fibre. Additionally, 7 in 10 Indian shoppers say they would be more likely to shop at a store offering clothes made from more sustainable materials, and nearly 8 in 10 (79 percent) say they put effort into finding sustainable apparel. As more manmade fibres have entered India’s market, businesses that promote natural fibres stand to be noticed. And 76 % of shoppers are more loyal to brands offering natural fibres like cotton. In China, 68 % of consumers are willing to pay more to keep clothing cotton-rich, according to the CCI and Cotton Incorporated Chinese Consumer Survey. Cotton Incorporated and CCI has initiated a promotion programme “Mian is…” (MI) in China for a decade, reminding consumers about the benefits of cotton and educating them on the fibre via digital and social media campaigns. “In 2015, with the theme of ‘Cotton, more than looking good,’ the campaign promoted cotton’s fashionability and other benefits,” says Cotton Incorporated’s Angela Chen, Manager, and Public Relations China. She emphasizes the depth of MI’s digital dive. “One of the MI musical and dance videos reached 16 million viewers. The program also has more than 60000 Weibo fans and more than 10000 fans on Wechat, just joined last June.”