The electronic lifestyle sector, which includes fashionThe beauty and personal care sectors are projected to experience even more dramatic growth, rising from $16-17 billion in 2023 to $40-45 billion in 2028.
In an interview with CNBC-TV18, Shyam Unnikrishnan, Partner, Bain & Company, highlighted three key factors driving the boom in the e-lifestyle market in India. Firstly, favourable macroeconomic factors are expected to play a crucial role.
As India moves towards becoming the world’s third-largest economy, a rise in discretionary income will likely lead to increased spending on lifestyle categories. Secondly, the changing consumer base, particularly the emergence of fashion-conscious Gen Z shoppers, is reshaping preferences.
This demographic is inclined towards organised retail channels and fast, trend-driven shopping experiences. Third, supply-side innovations – such as trend-first fashion, technology-enhanced discovery and accelerated delivery – are expected to bolster the overall consumer value proposition, making online shopping increasingly attractive, Unnikrishnan said.
He pointed out that lifestyle Lifestyle products are often a gateway to online shopping. According to the study, 40% to 45% of first-time online shoppers buy a lifestyle product, Unnikrishnan said.
These consumers tend to browse extensively, examining an average of 25 to 30 products before making a decision. Influencer content and high-quality images are key to converting these visitors into buyers, he added.
Interestingly, while average transaction sizes may be smaller, frequency and conversion rates are increasing, particularly among Gen Z shoppers, who are expected to increase their spending power as they advance in their careers.
Nandita Sinha, CEO of Myntra, highlighted the rapid evolution of the Indian e-lifestyle market, largely driven by the rise of Gen Z shoppers. Sinha emphasised that this demographic, which now constitutes 60 million e-lifestyle shoppers, is notably inclined towards digital-first brands. About 25% of these shoppers buy from insurgent or digital-first brands, and make as many as nine purchases, compared to their millennial counterparts.
Sinha notes that both demand and supply are converging towards a preference for trend-first fashion and a broader assortment, driven by a desire for faster upgrade cycles and innovative product offerings.
Please watch the attached video for the full discussion.
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