Indian apparel industry crafts a remarkable story of resilience in 2024

As we conclude another year, it is essential to reflect on the key developments, challenges, and achievements that have shaped different sectors throughout the past 12 months. The year 2024 has been marked by dynamic shifts, rapid innovation, and the continued adaptation to both external factors and emerging trends.

Adgully’s annual feature – REWIND – revisits different sectors and identifies the key developments as well gauges the long-term impacts of those developments. We speak to a cross-section of industry leaders to bring a 360-degree view of the industry landscape, the growth trends, financial performance, disruptions, innovations, challenges and more.

In this REWIND 2024 article, Sidhant Keshwani, Founder & CEO, Libas, speaks about the resilience shown by the Indian apparel industry in 2024, the key trends that shaped this industry, growth and expansion strategies of Libas during the year, as well as outlook for the apparel industry in 2025.

A story of resilience

As we approach the end of 2024, the Indian economy continues to demonstrate remarkable resilience in the face of various global challenges. Despite geopolitical tensions and fluctuating demand, India’s apparel industry has shown signs of recovery. This sector remains a crucial contributor to India’s GDP, accounting for approximately 2.3%, and directly employing around 45 million people, with many more in allied sectors. The domestic textile market is expected to grow at a compound annual growth rate (CAGR) of 10%, reaching $350 billion by 2030. This growth is driven by government initiatives and an increase in domestic consumption, underscoring the sector’s potential for expansion.

Key trends that shaped the apparel industry in 2024

Digital Transformation and E-Commerce Growth: The apparel industry in India has embraced digital transformation at an accelerated pace, particularly in the aftermath of the pandemic. Brands have increasingly focused on enhancing their online presence and direct-to-consumer strategies to cater to shifting consumer behaviours. Omnichannel retailing has become a priority, with brands striving to offer a seamless shopping experience across both online and offline platforms.
Innovations in Textiles: The year 2024 has seen significant advancements in textile innovations, with the development of smart textiles and technical fabrics that meet both functional and aesthetic demands. These innovations are not only enhancing the overall customer experience, but are also expanding the scope of apparel design, offering new opportunities for growth and differentiation within the market.
Focus on Local Production: A shift towards local sourcing and manufacturing has become increasingly evident across the apparel sector. Companies are focusing on strengthening their supply chains by reducing dependency on imports, which helps mitigate risks associated with global disruptions. This shift has contributed to the industry's resilience, particularly in light of ongoing supply chain challenges.

Libas’ remarkable growth in 2024

As a prominent player in the Indian apparel market, Libas has experienced significant growth in 2024. We are proud to report a 100% year-on-year growth, with a revenue of Rs 500 crore in FY24. This achievement is a testament to our commitment to innovation, strategic expansion, and operational excellence.

Our first-ever funding of Rs 150 crore from ICICI Venture has provided a strong financial foundation, enabling us to further accelerate our growth initiatives. A key focus for the year has been omnichannel expansion, particularly strengthening our retail footprint through technology-driven activations. We have also fostered collaborations across various platforms to enhance our market presence and reach new customer segments.

In line with our growth, we have appointed Nisha Khatri as our Head of Marketing and Arun AB as Vice President - EBOs. Their leadership and expertise have significantly enhanced our strategic capabilities and operational efficiency, positioning Libas for long-term success.

Growth strategies

Libas has been proactive in expanding our brand presence, and in 2024, we appointed Bollywood actress Kiara Advani as our brand ambassador, further solidifying our appeal among consumers. Additionally, we launched our largest Bridal Flagship store to date in Lajpat Nagar, which has garnered significant attention and enhanced our visibility.

Our product portfolio has expanded to cater to diverse occasions, and our marketing campaigns have resonated deeply with our core audience. By leveraging a strategic mix of online sales channels and influencer collaborations, we have seen a substantial increase in sales, reinforcing Libas’ growing dominance in the apparel sector.

Outlook for 2025: Trends and Expectations

Personalization and AI-Driven Shopping Experiences: As we look towards 2025, enhanced personalization is expected to be one of the key drivers in the apparel sector. Brands are investing in AI-driven technologies that will allow them to tailor shopping experiences based on individual customer preferences, making the shopping journey more engaging and efficient.

International Expansion: With international markets recovering, Indian apparel brands like Libas are increasingly seeking opportunities to expand abroad. High-quality Indian textiles are gaining recognition globally, and there is a growing demand for premium apparel in markets outside India.

Expectations: At Libas, our aspirations for 2025 are ambitious. Currently, we operate 18 Exclusive Brand Outlets (EBOs), and we plan to expand our retail footprint by opening 100 additional EBOs by the end of FY 2026. Our goal is to strengthen relationships with our loyal customers and position Libas as a global brand, with plans to establish an international presence in key markets.

Challenges and Opportunities

The apparel industry in 2025 will face a mix of challenges and opportunities. Economic uncertainty stemming from global fluctuations could impact consumer spending patterns, particularly in the mid-to-premium segments. Moreover, geopolitical tensions may continue to disrupt supply chains, affecting production timelines and costs.

However, the domestic market presents significant opportunities. Rising disposable incomes and a burgeoning middle class are expected to sustain demand for apparel, particularly in urban areas. Government initiatives, such as the Production Linked Incentive (PLI) scheme, will also play a pivotal role in boosting manufacturing capabilities and enhancing export potential.

In conclusion, as we reflect on the developments of 2024, adaptability and innovation will be key to success in the Indian apparel sector in 2025. Libas, with its unwavering commitment to customer-centricity and operational excellence, is well-positioned to thrive in the dynamic and evolving market landscape. The coming year holds significant promise for both the industry and our brand, and we are excited to continue our journey toward becoming a globally recognized leader in the apparel space.

Also Read: Indian apparel market to touch $135 bn by 2025