India's digital fashion landscape is undergoing a significant transformation, with a promising future ahead. A recent report titled "Digital Fashion Disruptors: Navigating the Future of Fashion" sheds light on this evolving trend.‍

Key Insights from the Report:

• By FY28, around 50 digital-first fashion brands are projected to surpass Rs 250 crore in revenue.
• Currently, India boasts nearly 700 online-first brands. However, less than 10% have managed to exceed Rs 50 crore in terms of revenue.
• The digital-first fashion market is anticipated to expand by 35%, reaching a $10 billion valuation by FY28, up from its present $2.4 billion.
• These brands are set to capture a 29% slice of the online fashion pie, which is predicted to swell to an impressive $35 billion by FY28.

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Radhika Sridharan, a partner at Bain & Company, shared her insights with YourStory. She highlighted that digital disruptors who cater to specific niches, like expressive wear, ethnic wear, and kids wear, have successfully established themselves as market leaders. The growth trajectory for these digital-first brands is largely fueled by GenZ and millennial consumers, who increasingly prefer online shopping for these categories.

However, the digital fashion realm isn't without its challenges. Prashanth Aluru, CEO and Co-founder of TMRW, emphasized the importance of innovation, not just in branding but also in supply chain management. He mentioned the need for agile supply chains and tech-driven innovation to meet consumer demands for fresh and new products. Brands must be prepared to invest in backend operations to stay ahead.

Interestingly, while beauty and personal care brands have attracted investments totaling $950 million over the past five years, apparel brands have garnered $430 million. But the tide seems to be turning, with apparel brands expected to draw more investments as they scale beyond the Rs 100 crore threshold.

For a deeper dive into the report and more insights, visit YourStory.

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