The Indian fashion landscape has undergone a seismic shift, moving beyond mere utility to become a core pillar of personal identity. Fashion is projected to drive 20% of the total growth in the Indian retail sector in the next decade. To capture this value, brands must pivot from viewing the ‘Indian Consumer’ as a monolith to addressing a collection of distinct, evolving cohorts.
In his keynote address at India Fashion Forum 2026, Praveen Govindu, Partner, Deloitte talked about this new India identity—how the rise of fast and affordable premium fashion is not just a shift in shopping habits, but a fundamental transformation of the Indian consumer from a monolith into a collection of distinct, evolving identities that prioritise aspiration, accessibility, and cultural resonance.
WATCH VIDEO: VIEW THE FULL KEYNOTE ADDRESS HERE
The Four Faces of the Indian Fashion Consumer
Deloitte’s latest research identifies four primary consumer cohorts shaping the market. Understanding these segments is critical for targeted brand positioning:
| Cohort | Market Share | Key Characteristics |
| The Minimalists | 34% | Prioritize functionality, quality, and durability over trends. |
| The Premium Seekers | 31% | Primarily Gen X; focused on quality upgrades and luxury status. |
| The Trend-Firsts | 21% | Primarily Gen Z; driven by speed-to-market and affordable upgrades. |
| Culture Enthusiasts | 14% | Seek “India-centric” designs and cultural resonance in their wardrobe. |
The Dual Revolution: Influence & Access
Govindu said that the fashion industry is undergoing a dual revolution, driven by shifting consumer aspirations and evolving access models.
On the demand side, a massive influencer ecosystem is redefining intent, turning aspiration into a primary driver for commerce. Simultaneously, the channels of access are transforming:
- Quick Commerce: Platforms are prioritising reach and convenience, dramatically shortening the delivery window.
- Agentic AI: Technologies like Google’s UCP protocol are integrating AI directly into the buying journey. Consumers now use tools like ChatGPT to curate options, moving seamlessly from a conversational prompt to a product detail page (PDP) with only the final payment remaining.
- Circular Economy: Consumer behavior is shifting from permanent ownership toward ‘rotation-based’ models, including rentals, resale, and ‘second-love’ marketplaces.
Govindu explained that this convergence of influencer-led desire, AI-integrated logistics, and flexible ownership models is fundamentally altering how fashion is consumed.
The Fashion Index: Cautious Optimism
The Deloitte Fashion Index—unveiled at India Fashion Forum 2026’s inaugural session—revealed a consumer base that is cautiously optimistic. The idea of coming up with this index is also to see where the consumer is today and what do we expect in terms of their behavior going forward, Govindu explains.
- Quality over Quantity: Consumers are buying less but prioritising premium products and trusted brands.
- Low Engagement ROI: Despite heavy investment in capturing consumer attention across offline and online channels, engagement is lagging. Consumers notice the brands but are not feeling inspired or driven to interact.
- Satisfaction Gap: On a scale of 0–100, brand perception indices for both mass and premium markets show significant room for improvement in assortment, experience, and value.
The Way Forward: A Strategic Roadmap for Fashion & Retail
To bridge the gap between consumer presence and actual engagement, the Index suggested that brands should focus on four key pillars:
- Leveraging Creator Commerce
The future of brand performance in fashion will be dictated by how effectively companies integrate with the creator economy to drive authentic commerce.
- Reimagining Processes with AI
Brands must move beyond surface-level tech and use AI and Agentic workflows to overhaul core business processes, specifically:
- Merchandising & Assortment Planning: Data-driven curation to reduce waste.
- Store Layouts: Optimizing physical spaces for better flow and conversion.
- Profitability Focus: Every tech intervention must be viewed through the lens of profitable growth.
- Occasion-Based Selling
Shift the sales strategy from selling ‘categories’ to selling ‘wardrobes or occasions.’
- The Global Model: Following successful retail patterns (e.g., Japan), brands should organize offerings by lifestyle—such as sportswear, party wear, or hiking—rather than just product types.
- Sustainability & Tech Accountability
- Sustainability as a USP: Move sustainability from a corporate checklist to a primary selling point that resonates with the conscious consumer.
- Technology ROI: Stop investing in tech for tech’s sake. Ensure every implementation has ‘skin in the game,’ making technology accountable for specific, measurable business outcomes.
