Some 20 brands launched in the past five years and aimed squarely at the social media generation — from Freakins and Bonkers Corner to Urbanic and Newme— are already nibbling into the sales of established rivals such as Zara and H&M in India.
Gen Z, the largest consumer cohort, isn’t brand conscious or loyal either, which is hurting global labels. Its members, between the ages of 13 and 28 years, frequently experiment with attire, from head to toe. Also, money isn’t a factor as most of these upcoming brands have price tags of Rs 500-800, almost half that of their rivals.
“Gen Z wears clothes to express themselves. The same consumer is wearing three different outfits on the same day. They go for aesthetically driven clothes which are statement pieces,” said Sumeet Jasoria, cofounder of Newme, a Gen Z-focused fashion brand.
With the generation joining the workforce in larger numbers and having money to spend, how they dress and where they shop for clothes is creating big shifts in the apparel and fashion industry.
International brands, generally priced at Rs 1,200-1,500 and above on average, are losing steam.
For instance, sales growth slowed for top retailers and fast fashion brands, including Marks & Spencer, Zara, H&M, Levi’s, Uniqlo and Benetton in FY24. Sales growth at H&M and Zara fell from 40% in FY23 to 11% and 8%, respectively. Levi’s slumped to 4% from 54% in FY23. Uniqlo’s sales expansion rate halved to 31% from 60%.Retailers such as Myntra, Tata’s Zudio and even ABFRL’s Pantaloons are focusing on affordable fashion. But Gen Z’s brand selection is not just driven by price.
Changing Market
“Brands that cater to the ongoing trends such as Freakins, BonkersCorner and Slyck continue to witness strong traction, resonating with this fashion-forward cohort,” said a spokesperson at Myntra, which launched FWD in May 2023, a Gen Z-focused brand within its app.
“Gen Z today accounts for one in every three e-lifestyle shoppers in the country and Myntra has witnessed a remarkable 100% year-on-year user growth in this cohort on our platform-—rising to 16 million Gen Z shoppers at the end of Q3 last year.”
These youngster’s choices are valuedriven, with the current average selling price (ASP) on FWD hovering at around Rs 500, the spokesperson added.
According to a recent report by Deloitte, Gen Z now comprises a cohort of 377 million, surpassing the total millennial population of 356 million in 2024. It’s already influencing nearly $40-45 billion worth of apparel and footwear purchase choices in India, the report said.
FREE SIZE Gen Z also is the first generation raised with the body positivity movement. The fit and design of clothes have nothing to do with size. Whether its crop tops, or ripped denims, Gen Z consumers want size inclusivity across the board.
“For the longest time, sizing in India for apparel was limited to S, M and L,” said Vinay Singh, founding partner of Fireside Ventures. “This has now officially extended to include XS, XL and XXL with Gen Z shoppers taking over the market.”
Unisex clothes are the go-to preference of these consumers. The men-versus-women’s clothing difference is blurring in a lot of apparel categories such as shirts, pants, jackets and even shoes, say brands.
In fact, the more unique the brand and the design, the more likely they are to be attracted to it. Instagram brands, while still small in India, are the go-to option of Gen Z shoppers.
“Gen Z shops online. At least 70% of their shopping is online, especially for clothes. What they want to buy is driven by Instagram and global trends,” said Anand Ramanathan, partner, consumer, at Deloitte India. “Most of these Instagram brands are not agile and could burn out as well. They are currently being run by design, customisation and investor money.”
