Industry
Fashion is going green, but the journey is slow
Summary
- With the fast fashion industry poised to touch $50 billion by FY31, the shift to sustainable clothing is likely to be full of hurdles.
As consumers realize the grave impact of fast fashion on the environment, a host of sustainable clothing brands like Virgio, Nicobar, and No Nasties have emerged in the last few years, aiming to influence users to opt for upcycled and climate-friendly clothing.
Consumers across age groups, including Gen Z and young millennials, are now increasingly opting for environmentally sustainable T-shirts, jeans and even accessories like belts and bags, offering up-and-coming startups a new opportunity to capitalize on.
Vijay, a 29-year-old advertising executive based in Mumbai, recently purchased a linen shirt from the brand Creatures of Habit after coming across multiple advertisements on Instagram. “The material is soft and lightweight. It’s unlike any other shirt I have bought before. I hope this lasts me many years," Vijay quipped.
The trend has reached older users, too. Kavya, a 42-year-old homemaker in Chennai, recently bought a saree dyed with plant-based colours from an online store, intending to try out new styles other than the usual silk.
Investors are looking at the space closely, too. Bengaluru-based Un Denim and Goa-based No Nasties are in talks with early-stage backers for seed funding, two people in the know told Mint.
Un Denim’s founder Joono Simon confirmed the development, noting that it recently closed a pre-seed round and is actively looking to raise seed money. No Nasties’ founder Apurva Mehta denied the development stating that the brand will continue to be “organically funded".
According to market intelligence platform Tracxn, there are more than 900 startups building in the segment.
However, the shift from fast fashion to sustainable clothing is expected to be slow and marred with hurdles, industry experts told Mint, especially with fast fashion having made such a deep impact in the minds and pockets of consumers.
And even though many consumers like Vijay and Kavya are showing interest in long-lasting clothing, it doesn’t mean they are ditching fast fashion brands like H&M and Zara. They will continue to buy from those brands while showing willingness to give other brands a try.
Sustainability not enough
The fast fashion industry is projected to touch a whopping $50 billion by FY31 from the current $10 billion, as per estimates by Redseer Strategy Consultants. In FY24 alone, the sector grew by 30-40% year-on-year, driven by affordability and growing access to trendy styles.
“Despite a year of sluggish consumption, fast fashion stood out as one of the few thriving sectors in India’s retail market," Kushal Bhatnagar, associate partner at Redseer, said.
“Fashion is the second most polluting industry after automobiles. It always flew under the radar because of the glitz and glamour associated with it. But today the consumers and policymakers are looking at it differently. The new consumer is making choices which are more climate friendly and regulators across the world are pushing the industry to clean up," said Joono Simon, founder of Un Denim, a Bengaluru-based apparel brand that sells upcycled denim products.
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Amar Nagaram, founder of Virgio which recently pivoted from fast fashion to circular fashion, shares a similar sentiment. “Consumerism in the last 10-15 years has gone from being need based to convenience based. When we started our journey, we started asking ourselves if the world needs another cheap, fast fashion brand. With more Gen Z population coming in, conscious consumerism will thrive," the former Myntra chief noted.
However, the pitch of eco-friendliness alone will not be enough to attract customers towards sustainable clothing, according to Zoeb Ali Khan, investor at early-stage venture capital firm Sauce.vc.
“Brands will have to focus on product differentiation and competitive pricing to power repeat purchases," Khan told Mint. Moreover, fast fashion is working well because it keeps up with rapidly changing trends at dirt cheap prices, helping bring back customers over and over again.
Virgio rolls out 35-40 styles every 15 days, in line with emerging trends. “At this point there is a limitation in the supply chain which we are working on. As the supply chain grows, we will be able to expand the width without any impact on inventory levels. That’s our secret sauce on how we will make it work," Nagaram said.
Un Denim’s Simon added that it will focus on the mid-premium segment with denim jeans prices starting at ₹2,999 and accessories in the range of ₹1,400-5,000. “We want to make sustainable products mainstream. Currently, this category has a premium and ultra-premium tag. We want to make it more accessible," he added.
In the end, not every consumer is idealistic which will mean there’s a long way to go until fast fashion is no longer the norm, according to Sauce.vc’s Khan. “Not all consumers are fully into the values of sustainability that they will quit buying from fast-moving apparel brands. Instead, we can expect them to choose a balance of both for the near term till such time eco-friendly clothing can be made more affordable and mainstream," he added.
