The future of fashion is digital

TMRW, Aditya Birla Group's portfolio of D2C brands, together with global consultancy giant Bain & Co., published a report titled 'Digital Fashion Disruptors: Navigating the Future of Fashion'

Consumers today demonstrate a remarkable willingness to explore new brands and trends. Since the advent of e-commerce, fashion has become more accessible than ever to Indians across ages and regions. It comes as no surprise, then, why digital disruptors stand to benefit the most. According to a recently released report by TMRW and Bain & Co. titled ‘Digital Fashion Disruptors: Navigating the Future of Fashion’, digital disruptor brands have a projected annual growth rate of 35%, and is expected to touch USD 10 billion by FY28.

This insightful report was authored by Ms Radhika Sridharan and Mr Prashant Sarin, two senior partners at Bain & Co., along with Mr Prashanth Aluru, CEO and co-founder of TMRW. TMRW is a ‘house of brands’ entity launched in June 2022 by Aditya Birla Group’s fashion powerhouse, Aditya Birla Fashion and Retail Limited (ABFRL), with the aim of leading the next phase of direct-to-consumer (D2C) growth in India. Since its inception, TMRW has gone on to partner with eight digital-first lifestyle brands, including Bewakoof, Veirdo, and Berrylush.

The report points to four primary factors driving the digital shift in India:

• Young consumer demographic: Gen Z and millennials already account for a significant portion of online fashion purchases. They are also the most likely to experiment with new brands.
• Niche market opportunities: Emerging brands have successfully identified underserved markets, creating niche offerings that appeal to a wider consumer base.
• Strategic marketing initiatives: Successful D2C brands are investing in building brand awareness among consumers, resulting in nonlinear returns on conversion and wallet share.
• Increased funding for apparel: As apparel brands scale further and demonstrate a clear path to profitability, they are poised to attract more funding from investors.

Making an extraordinary impact

The fashion and lifestyle segment has historically remained highly fragmented. Currently, over 700 brands share the space, with less than 10% of them managing to scale beyond Rs 50 crore. Yet, digital disruptors have succeeded in making a mark in those very segments where competition is fierce – accessories, expressive wear, kids wear, and ethnic wear. In fact, the various complexities inherent in these segments have presented disruptor brands with the ideal opportunity to shine!

Standing out with a unique value proposition

Consumers have grown to expect features such as comfort, fit, and aesthetic appeal as defaults. Therefore, successful brands, must position themselves beyond these basic criteria by offering consumers additional value, such as a sense of well-being, fun, confidence, and self-expression.

Going beyond the digital realm

Successful digital disruptor brands are also actively exploring offline expansion opportunities to enhance brand recognition and foster growth. The report suggests that most brands will eventually transition towards an omnichannel approach to maximise brand visibility, sales, and consumer engagement.

To download the full report, visit: https://www.tmrw.in/wp-content/uploads/2023/09/digital_first_brands_in_india_navigating_the_future.pdf