current
Asia’s Shifting Growth
China's economic slowdown is prompting fashion brands to explore new growth engines in other Asian markets, particularly India and Japan.
Timeframe
near-term
Subcategories
Impact areas
Detailed Analysis
While China remains a significant market, its economic deceleration and changing consumer preferences are creating challenges for international brands. "China’s economic deceleration, changing consumer preferences and the return of international travel are making growth in the country highly challenging, leading international fashion brands to look to other Asian markets." This is leading brands to diversify their focus within Asia. India, with its rapidly growing middle class and increasing disposable income, is emerging as a key market, particularly for high-street players. "India’s strong growth is rendering it a key global fashion market, particularly in the mid-market segment, which is expected to grow around 12 to 17 percent in 2025 compared to the projected low single-digit growth of the global fashion market." Japan's luxury market continues to boom, driven by tourism and a weak yen. "Japan’s luxury market grew 25 to 30 percent in the first half of 2024, driven by ongoing currency weakness and a surge in tourism."
Context Signals
China's GDP growth slowing
India's middle class expansion
Japan's tourism boom
Edge
Southeast Asian markets like Indonesia and Thailand could become the next frontier for fashion brands.
Localized omnichannel strategies will be crucial for success in diverse Asian markets.
Brands may leverage social commerce and influencer marketing to connect with younger consumers in India and Southeast Asia.
