{"id":6857,"date":"2026-01-15T10:37:00","date_gmt":"2026-01-15T05:07:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=6857"},"modified":"2026-01-20T10:45:56","modified_gmt":"2026-01-20T05:15:56","slug":"foreign-fashion-labels-fade-functional-clothing-the-fad","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/foreign-fashion-labels-fade-functional-clothing-the-fad\/","title":{"rendered":"Foreign fashion labels fade, functional clothing the fad"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Sagar Malviya, ET Bureau <br>Mumbai, 15 January 2026 <\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s mostly a tale of two halves for top western fashion labels in India after the runaway sales and retail expansion in the years soon after the pandemic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While Marks &amp; Spencer, Benetton, and Adidas are battling waning demand, Uniqlo and Nike are gaining fresh ground, reflecting wider choices and increasingly discerning buyers in one of the world\u2019s fastest-growing consumer economies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Spanish brand Zara is facing stagnant growth while it tapered off at Apparel Group, which sells Aldo, and Charles &amp; Keith brands in India. Experts termed the divergent sales performance as a potential structural shift instead of demand slowdown in India&#8217;s fashion and lifestyle market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Devangshu Dutta, founder of retail consulting firm Third Eyesight, said consumers have clearly shifted towards function, even as trend-led brands continue to exist though they tend to be comparatively smaller. Some brands are also finding it harder to set or even follow trends the way they once did.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cThis is especially true for Gen Z, which stays closely tuned to global trends and acts as the primary driver of fashion adoption,\u201d said Dutta. \u201cWhile older consumers may have greater spending power in absolute terms, it is younger shoppers who shape trends and influence product sales.\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Growth slowed across most leading retailers and fast-fashion brands in the country in FY24 as high inflation and stagnant incomes crimped discretionary spending.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"426\" height=\"320\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2026\/01\/india-fashion-brands-FY2025-1.png\" alt=\"\" class=\"wp-image-6859 lazyload\" data-srcset=\"https:\/\/myechoproject.com\/TES\/wp-content\/uploads\/2026\/01\/india-fashion-brands-FY2025-1.png 426w, https:\/\/myechoproject.com\/TES\/wp-content\/uploads\/2026\/01\/india-fashion-brands-FY2025-1-300x225.png 300w\" data-sizes=\"(max-width: 426px) 100vw, 426px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 426px; --smush-placeholder-aspect-ratio: 426\/320;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">While the trend remained the same for many even in FY25, select brands staged a strong rebound. For instance, Nike India\u2019s sales rose 14% in FY25, up from a 4% increase in the previous year, while Uniqlo accelerated growth to 45%, from 31% in FY24.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Revival after Festive Season<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even Lifestyle, India&#8217;s biggest department store chain, grew 5% last fiscal, rebounding from a 4% decline in FY24.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Uniqlo said it continues to see steady momentum in India, supported by strong customer response, retail expansion, rising brand awareness, and a strong ecommerce uplift. \u201cIndia is now among Uniqlo\u2019s fastest-growing markets in Asia and plays a meaningful role in the region\u2019s overall business,\u201d Kenji Inoue, chief financial officer and chief operating officer, Uniqlo India told ET. \u201cThe country\u2019s young demographic, growing focus on quality, and increasing appreciation for functional everyday clothing have all contributed to this progress.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Retailers Association of India (RAI), sales growth in organised retail segments such as apparel, footwear, beauty and quick service restaurants (QSR) saw single-digit sales growth last fiscal year but the market has recovered after the festive season with double-digit sales performance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cDemand has improved, but it isn\u2019t broad-based,\u201d said Kumar Rajagopalan, chief executive at RAI which represents organised retailers. \u201cWith more fashion options available, Indian consumers are becoming more selective, and growth is coming to brands that offer a strong value proposition and not the cheapest products, but those where prices are justified by innovation, design and quality.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In FY25, Apparel Group recorded a 25% sales growth, slowing from a 37% increase a year ago. Inditex Trent, which sells Zara in India, saw flat sales compared with an 8% growth in FY24.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Adidas too saw its revenue growth rate slowing to 5% from 20% in the previous fiscal. Sales of M&amp;S and Benetton fell 12% and 3% each, respectively.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Being the world\u2019s most populous nation, India is an attractive market for apparel brands, especially with youngsters increasingly embracing western-style clothing. However, most international and premium brands have been competing for a relatively narrow slice of the sales pie in large urban centres.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(Published in <a href=\"https:\/\/economictimes.indiatimes.com\/industry\/cons-products\/fashion-\/-cosmetics-\/-jewellery\/foreign-fashion-labels-fade-functional-clothing-the-fad\/articleshow\/126533287.cms\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Economic Times<\/a>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sagar Malviya, ET Bureau Mumbai, 15 January 2026 It\u2019s mostly a tale of two halves for top western fashion labels in India after the runaway sales and retail expansion in the years soon after the pandemic. While Marks &amp; Spencer, Benetton, and Adidas are battling waning demand, Uniqlo and Nike are gaining fresh ground, reflecting [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6860,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[25,27,212,249,33,60,36,37,3,131,43,44,46,48],"tags":[134,963,26,140,52,964,32,239,145,55,836,267,59,191,69,61,164,147,241,192,115,82,119,120,153,166,154,70,632,63,662,159,673,67],"class_list":["post-6857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-apparel","category-branding","category-consumer","category-e-commerce","category-footwear","category-india","category-lifestyle-fashion","category-marketing","category-press-quotes","category-product-development-and-design","category-retail","category-soft-goods","category-strategy","category-textiles","tag-adidas","tag-aldo","tag-apparel","tag-benetton","tag-branding","tag-charles-keith","tag-fashion","tag-fashion-lifestyle","tag-fashion-brands","tag-fast-fashion","tag-gen-z","tag-growth","tag-india","tag-indian-market","tag-indian-retail-sector","tag-inditex","tag-international-brand","tag-international-brands","tag-international-fashion-brand","tag-international-fashion-brands","tag-lifestyle","tag-lifestyle-fashion","tag-market-segments","tag-marketing","tag-marks-spencer","tag-modern-retail","tag-nike","tag-organised-retail","tag-premium-brands","tag-product-development","tag-tata-group","tag-trent","tag-uniqlo","tag-zara"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Foreign fashion labels fade, functional clothing the fad - Third Eyesight<\/title>\n<meta name=\"description\" content=\"Indian fashion retail sees a split. 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