In its latest knowledge report, “Indian Apparel Market Review: Dynamics & Direction (2020–25)” Wazir Advisors highlighted a five-year review of India’s organised apparel landscape, showing a clear shift toward affordability, even as discounting becomes a structural drag on profitability. The report stated that across formats, the next phase is being shaped by tighter inventory control, premiumisation where possible, and omnichannel execution, not just store-count growth.
Scope and Lens
The report benchmarked 70 apparel brands and retailers in India across FY20 to FY25, covering a combined FY25 revenue base of INR 1,34,500 Cr.
Players were grouped into nine segments: Value Fashion Retailers, Multi Brand Lifestyle Retailers, Department Stores, Innerwear & Loungewear, Global Brands/Retailers, Regional Retailers, Single Indian Lifestyle Brands/Retailers, Ethnic Brands/Retailers, and Startups.
Performance was assessed through a simple lens: Revenue, PAT margin (PAT%), and marketing spend as a percentage of revenue, alongside category-level operating themes such as discounting, distribution dynamics, and channel shifts.
Key Findings
- Value Fashion Retailers were the biggest share gainer, expanding from 18% of the sample revenue in FY20 to 29% in FY25, driven by price-sensitive demand and Tier 2/3 expansion.
- The market remains deeply fragmented: the organised apparel landscape includes ~5.2–5.5k players with revenue under Rs 100 Cr, compared to only 7–10 players above Rs 5,000 Cr.
- Discounting has structurally intensified: Myntra’s listed average discounts rose from 28% (2020) to 43% (2025), with mega-sale windows normalising 50–70% markdowns.
- In key online categories, a majority of styles were listed at 50%+ discount including 73% of women’s T-shirts, 72% of kurtas/tunics/tops, and 69% of dresses (based on Myntra listed products).
- Profitability is uneven and under pressure: the FY25 sample delivered an overall PAT margin of 5%, with a large share of companies clustered between 0% and 5% PAT.
- Value Retailers scaled while improving discipline, growing revenue from Rs 12,969 Cr (FY20) to Rs 37,838 Cr (FY25), with PAT% rising from -0.9% to 5.2% over the period.
- Innerwear & Loungewear saw competition intensify as D2C startups raised marketing and discount pressure; growth increasingly came from premiumisation, not distribution expansion.
- The sector continued to attract investor attention, with USD 959 Mn raised across 275 rounds since 2020.
Forward Implications
The five-year story is not simply ‘growth vs slowdown’, it is a reshaping of the organised apparel playbook. Affordability-led formats have expanded fastest, but the industry’s profit pool is increasingly constrained by discounting intensity and saturated distribution in multiple categories.
For operators and investors, the next phase will likely reward models that can grow without relying on event-led sales, while improving productivity per store and building stronger channel mix resilience.
- Category direction: The shift toward value retail is being treated as durable, with affordability and cluster-led expansion emerging as the clearest scaling engine.
- Profitability vs growth: Heavy discounting has conditioned consumers, making margin recovery dependent on assortment control, inventory discipline, and reduced reliance on mega-sale events.
- Operating model shifts: In several segments, distribution expansion is reaching saturation and future growth is increasingly tied to premiumisation, productivity improvement, and revenue per store, not footprint alone.
- Investor/operator lens: Startups are scaling, but the report flags a shift from hyper growth toward the need for omnichannel integration, CAC rationalisation, and sustainable margin architecture.
Closing Summary
India’s organised apparel market is entering a more demanding phase: growth is still available, but it is becoming harder-earned. Value formats have pulled ahead, premium players are maturing, and discounting has become a permanent feature, not a temporary tactic.
Across categories, the winners are increasingly defined by execution: disciplined inventory, sharper assortments, and operating models built for resilience, not just scale.
