India’s western fashion market is seeing mixed results after the strong post-pandemic boom. While some global brands are struggling with slower demand, others are continuing to grow. Brands like Marks & Spencer, Benetton and Adidas are facing weak sales, while Uniqlo and Nike are expanding their footprint. At the same time, Zara’s growth has remained flat, and sales growth has slowed at Apparel Group, which operates Aldo and Charles & Keith in India. Experts said that this uneven performance suggests a structural shift in the fashion and lifestyle market, rather than just a short-term drop in demand, ET report. Devangshu Dutta, founder of retail consultancy Third Eyesight, said that consumers are moving towards more functional clothing. Trend-led brands still exist, but they are becoming smaller, and some labels are finding it difficult to set or follow trends. “This is especially true for Gen Z, which stays closely tuned to global trends and acts as the primary driver of fashion adoption,” said Dutta. “While older consumers may have greater spending power in absolute terms, it is younger shoppers who shape trends and influence product sales.” Growth slowed across most major retailers in FY24 as high inflation and stagnant incomes reduced discretionary spending. The trend continued into FY25 for many brands, though a few posted strong recoveries. Nike India reported a 14% rise in sales in FY25, compared with 4% growth in the previous year. Uniqlo’s growth also picked up sharply to 45% from 31% in FY24. Sales improved after the festive season. Lifestyle, India’s largest department store chain, grew 5% in the last fiscal year, recovering from a 4% decline in FY24. Uniqlo said that its India business is seeing steady momentum due to strong customer response, store expansion, rising brand awareness and a boost in ecommerce sales. “India is now among Uniqlo’s fastest-growing markets in Asia and plays a meaningful role in the region’s overall business,” Kenji Inoue, chief financial officer and chief operating officer of Uniqlo India, told ET. “The country’s young demographic, growing focus on quality, and increasing appreciation for functional everyday clothing have all contributed to this progress.” According to the Retailers Association of India, organised retail segments such as apparel, footwear, beauty and quick service restaurants recorded single-digit growth last fiscal year. However, sales picked up after the festive season, with double-digit growth returning. “Demand has improved, but it isn’t broad-based,” said Kumar Rajagopalan, chief executive at the Retailers Association of India. “With 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.” Company results highlight this divide. Apparel Group’s sales rose 25% in FY25, slower than the 37% growth seen a year earlier. Inditex Trent, which runs Zara in India, reported flat sales after growing 8% in FY24. Adidas saw its revenue growth slow to 5% from 20% in the previous year, while sales at Marks & Spencer and Benetton fell by 12% and 3%, respectively. India remains an attractive market for international fashion brands due to its large population and growing adoption of western-style clothing among young consumers. However, most global and premium brands are competing for a limited share of demand concentrated in major cities, making growth more challenging.