Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
Spanish retail giant Inditex, which already operates over 50 Zara clothing stores in India, recently announced plans to launch Bershka, a youth apparel brand, alongside Zara Home in the country. This move reflects a growing trend of fashion brands recognizing the vast potential of the Indian home decor market, estimated to be worth over USD 20 billion.
The success of established fast-fashion brands like Zara and H&M, with over 50 and 40 stores respectively in India, demonstrates the strong consumer demand for trendy and affordable clothing. Now, these brands are looking to extend that success into the home, capitalising on the rising disposable income (projected to reach USD 4 trillion by 2025) and growing aspirations of Indian consumers, especially in tier-2 and tier-3 cities with a combined population of over 500 million.
India's home decor market is booming, driven by factors like increasing urbanisation (projected to reach 40% by 2040), a growing middle class (expected to reach 500 million by 2025), and a shift towards modern living. This presents a significant opportunity for fashion brands, who already have a strong understanding of design trends and customer preferences.
Inditex isn't the only fashion player eyeing the Indian home decor market. Several Indian fashion designers and lifestyle brands have already established a presence in this space. Established retailers like Westside (over 130 stores) and Lifestyle (over 80 stores) have dedicated sections for home decor products, offering a wider variety of options for budget-conscious consumers.
This trend of fashion brands entering the home decor market has interesting implications for the Indian real estate sector, valued at an estimated USD 120 billion. As people aspire for more stylish and functional living spaces, the demand for homes with modern layouts and features that can accommodate these new home decor products is likely to increase. Developers may need to consider incorporating features like dedicated storage spaces (closets exceeding 10 ft. linear ft. on average), versatile lighting options (dimmable switches and track lighting), and open floor plans to cater to this evolving consumer preference.
The entry of fashion brands into home decor presents a win-win situation for both consumers and developers. Consumers benefit from a wider variety of stylish and affordable home decor options, allowing them to personalise their living spaces for under INR 10,000. Developers can attract tenants and buyers seeking modern living spaces that can be easily customised with these trendy products.
Inditex's Zara Home isn't the only international player entering the Indian home decor arena. Established furniture giants like Pottery Barn and West Elm are also making their presence felt. These brands offer a curated selection of furniture and homeware, often at a premium price point. For instance, a dining table at Pottery Barn India starts at INR 1 lakh, reflecting their focus on high-quality materials and design. While Zara Home might leverage its fashion brand recognition and churn out trendy collections at accessible prices (think throw pillows starting at INR 1,500), Pottery Barn and West Elm boast established expertise in furniture and homeware, potentially offering wider product ranges and a more comprehensive design aesthetic.
Alongside international brands, prominent Indian luxury players like Good Earth and The Address are well-positioned to cater to a discerning clientele. These brands offer handcrafted pieces, often made with sustainable materials, with price points typically starting from INR 50,000 for a sofa. Their focus on heritage, intricate design, and bespoke touches differentiates them from mass-produced furniture. For example, Good Earth offers a hand-embroidered silk cushion cover for INR 12,000, a unique statement piece for the living room.
The recent entry of Ikea, a global furniture giant known for its affordable, ready-to-assemble furniture, has further made it interesting. Their rapid store expansion, with three stores opening in the last year alone, signifies the immense potential of the Indian market. Ikea's average sofa, priced around INR 20,000, positions them directly against established Indian brands like Urban Ladder and Pepperfry, both of which also have a strong online presence. Urban Ladder, for instance, offers a mid-range fabric sofa starting at INR 30,000, catering to a segment seeking a balance between affordability and design.
The Indian home decor market is set for continued growth, exceeding USD 20 billion. This growth is fueled by a diverse set of consumers with varying budgets and preferences. Fashion brands like Zara Home offer trendy collections at accessible prices, while established furniture brands like Pottery Barn and West Elm cater to those seeking a more curated and design-centric aesthetic. Indian luxury brands like Good Earth fill the niche for handcrafted pieces steeped in tradition. Finally, Ikea provides a solution for budget-conscious buyers who prioritise functionality and affordability, while Urban Ladder bridges the gap between affordability and design for the modern Indian consumer.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
