Premium fashion in India continues to command strong aspirational appeal, but its definition is undergoing a significant transformation, according to a recent Deloitte India report.
The study finds that premium is no longer determined solely by higher price points; instead, consumers increasingly associate premium value with quality, authenticity, longevity and ethical production
Superior fabrics, improved fit, thoughtful design and responsible sourcing are now central to purchase decisions.
The report identifies mid-premium apparel, typically priced between ₹3,500 and ₹7,000 (US$38–76), as one of the fastest-growing segments in the Indian fashion market
Deloitte estimates this category will expand at a compound annual growth rate (CAGR) of around 25%, supported by rising disposable incomes and a growing preference for quality-led fashion choices over mass consumption.
Growth in the premium apparel segment is expected to be even stronger, with a projected CAGR exceeding 45%. This acceleration is being driven by heightened consumer aspirations, increased exposure to global fashion trends and a rising willingness to invest in fewer, higher-quality purchases.
Importantly, demand for premium fashion is no longer limited to metropolitan centres. Tier-2 and Tier-3 cities are emerging as key growth contributors, reflecting broader access to brands, digital influence and evolving lifestyle aspirations beyond major urban hubs.
Also Read : 360 TSL and Bangladesh Textile Industry’s Green Building Shift
At the same time, the report highlights a cautious but considered spending approach among Indian consumers. Most premium fashion purchases are strategically timed around discounts, festive periods or special occasions, indicating that higher prices are justified only when supported by tangible value
This behaviour underscores a shift away from impulse buying or trend-driven consumption towards more deliberate, value-based decision-making.
Another notable trend is the growing openness to brand experimentation. Nearly 40% of consumers surveyed reported trying a new fashion brand in the past year, driven by trusted recommendations, peer influence and accessible pricing.
Also Read : Better Cotton Initiative Hosts Large Farm Symposium
Deloitte notes that these factors help reduce the perceived risk of engaging with unfamiliar labels.Younger and urban consumers, in particular, are gravitating towards emerging and mid-premium brands that offer differentiation without steep price escalation.
Social media, influencer marketing and digital storytelling have accelerated brand discovery, enabling fashion brands to build credibility and emotional connections more rapidly than before.
Beyond product and price, experience is becoming a decisive factor in purchase decisions. Despite rapid growth in digital discovery and e-commerce, physical retail remains influential, with around 30% of shoppers citing sensory engagement and in-store experience as key drivers of premium fashion purchases.
Commenting on the findings, Anand Ramanathan, Partner and Consumer Industry Leader at Deloitte India, said Indian fashion consumption is entering a more confident and discerning phase. He noted that consumers are no longer chasing volume or visibility but are seeking meaning, durability and confidence by evaluating a brand’s purpose and promise.
As aspirations rise, trust, transparency and accessibility will become increasingly important, positioning brands that balance premium perception with relevance and affordability to shape the next phase of India’s fashion market growth.
