Written By: Bandana Gupta

Thinking of starting a fashion business? India’s clothing market is growing fast, with the fashion industry expected to rise by 3.34% between 2024 and 2027. With strong demand and a booming retail sector, now is a great time to explore profitable fashion franchise opportunities across the country.

Indian Fashion Industry: Trends, Challenges, and Opportunities 

The Indian fashion industry is becoming well-known globally for its unique designs, variety, and focus on eco-friendly fashion. According to a report, the Indian fashion market is expected to grow by 11–12% annually and could reach ₹9.5 to ₹10.5 lakh crore by 2025. But along with this growth, the industry also faces some challenges like rising competition, changing customer tastes, and new technology. So, there are both big opportunities and tough challenges ahead.

Latest Trends in Indian Fashion

1. Sustainable Fashion is Growing More Indian brands are now using eco-friendly materials, cutting down on waste, and treating workers fairly. This is because more people want clothes that are good for the planet and the people who make them.
2. Online Shopping is the New Normal After COVID-19, fashion brands in India have gone more digital. They’re selling through websites, using social media, and even offering virtual try-on tools. This online trend is only getting bigger, helping brands reach more customers easily.
3. Fashion for Everyone Indian fashion is becoming more open and inclusive. Brands are now designing 

clothes for plus-size people, the transgender community, and those with disabilities. This shift is making fashion more welcoming for all kinds of people.

Challenges in the Indian Fashion Industry

1. Tough Competition Many Indian and international fashion brands are fighting for customers. To stand out, brands must offer something new, keep their quality high, and treat customers well.

 2. Supply Problems The COVID-19 pandemic caused delays in getting materials, making products, and  delivering them. Now, brands need stronger supply systems to avoid such problems in the future. 3. Lack of Skilled Workers There aren’t enough trained people in areas like fashion design, stitching, and marketing. This makes it hard for brands to grow and expand their business.

Big Opportunities in Indian Fashion

1. Export Growth Indian fashion has a strong chance to grow globally. Our traditional designs, skilled artisans, and eco-friendly fashion are loved worldwide. By focusing on quality and sustainability, Indian brands can succeed in international markets.
2. Booming Online Market Online shopping in India is growing fast. This gives fashion brands a great chance to reach more customers. Investing in a strong e-commerce setup can lead to big rewards.
3. Need for Strong Fashion Laws Clear laws are needed to protect fashion designs, stop fake products, and help brands follow the rules. A better legal system will make it easier for businesses to grow and feel secure.

Fashion is More Than Style — It’s a Business of Expression and Opportunity

Fashion isn’t just about following trends. It’s a powerful way to show your personality, taste, and mood. If you’re passionate about fashion or love curating stylish looks, there are plenty of business opportunities waiting for you.

And fashion isn’t just about clothing. You can build a successful business in many areas — from footwear, bags, and accessories to sunglasses and more. 

Top fashion business ideas and franchise opportunities:

BIBA—A Top Ethnic Wear Brand

BIBA, started in 1988 by Meena Bindra, is a leading ethnic fashion brand loved for its bright colors, simple designs, and comfort. With over 100 franchise stores in India and abroad, it’s popular even in small cities. Biba is a trusted and profitable fashion brand, making it a smart choice for investment.

• Investment: 30-50 lakhs
• Unit Area: 1000-1200 sq. ft
• Royalty fee: 5%

Raymond—A Trusted Franchise Choice

Raymond, established in 1925, is a leading men’s fashion brand, well-known for its high-quality shirts and suits. With hundreds of outlets and strong brand value, it offers full support to franchise partners, making it a reliable and profitable investment.

Investment Details:

• Initial Investment: 25-50 lakhs
• Area required: 600- 1200 sq.ft
• Royalty fee:20%

Siyaram—A Trusted Fashion Brand

Siyaram is one of India’s top fashion brands, with a strong presence of over 1 lakh retail stores across the country. Franchisees with a passion for fashion can earn back 30% of their investment in 3–5 years, making it a smart and rewarding business choice.

• Initial Investment: 20-30 lakhs
• Area required: 500-1500 sq.ft
• Royalty fee: 5%

Ajmera Trends—A Great Clothing Franchise Opportunity

Ajmera Trends provides one of the top franchise opportunities in women’s, men’s, and kids’ fashion. With a trusted brand name and a wide range of products like sarees, kurtis, dresses, lehengas, and more, it’s a profitable business that keeps customers happy.

• Investment: 12-25 lakhs

Jockey—A Top Fashion Franchise in India

Jockey is a famous innerwear brand known worldwide since 1876. It sells products for both men and women and is loved for its quality, comfort, and new designs.The brand supports its franchise partners with store design and training and helps them earn good profits.

• Investment : 40-50 lakhs
• Shop area : 1000-1200 sq.ft
• Franchise fee: 5-10 lakhs

Peachmode – Modern Indian Wear with Style and Quality

Peachmode is a popular fashion brand known for its stylish and modern take on traditional Indian clothing. It offers a wide variety of high-quality apparel, including sarees, salwar suits, lehengas, kurtis, and more. The brand focuses on trendy designs, vibrant colors, and fine fabrics that appeal to today’s fashion-conscious customers. With its strong online presence and focus on customer satisfaction, Peachmode is a trusted name for ethnic wear across India.

• Investment:  35-50 lakhs

Rupa & Company—A Leading Innerwear Franchise

Established in Kolkata in 1968, Rupa is a leading brand in Indian knitwear, manufacturing around 7 lakh garments every day. It offers a 52% ROI in just 1.6 years, with an ideal store size of 500 sq. ft. in high-traffic areas. Known for regular product updates and strong brand support, Rupa is expanding further and remains one of the best low-cost franchise options in India.

• Investment: 50000-1 lac

FirstCry—A Profitable Kids' Franchise Opportunity

With the growing demand for kids' products, FirstCry presents a strong opportunity for a successful and profitable franchise. It partners with top brands like Disney, Pampers, Barbie, 

Gerber, and Pigeon. It’s a smart choice for those looking to start a quick and rewarding business.

• Investment : Rs 20 lakhs onwards
• Area requirement : 1200-2500 sq.ft
• Profit: 18-20% net profit

Stylish Fashion & Lifestyle: one label for global style and daily elegance.

Stylish Fashion & Lifestyle is a growing brand that brings international trends to the Indian market. It focuses on offering a wide range of fashion and lifestyle products that combine global style with everyday comfort. From western wear and casual clothing to accessories and lifestyle items, Styleash caters to the modern, fashion-forward customer. The brand is committed to delivering high-quality, stylish, and affordable products, making it a promising option for franchise partners looking to tap into the dynamic fashion segment in India.

• Investment: Rs 20 lac- Rs 30 lac
• Space required: 800-1000 sq. ft.

Key Factors to Consider Before Investing in a Fashion Franchise in India

Before stepping into the fashion retail business through franchising, it’s important to evaluate several key factors to ensure long-term success:

1. Investment Requirements

The cost to invest in a franchise varies significantly depending on the brand chosen.Some regional or entry-level franchises may require ₹10–15 lakhs, while premium or luxury fashion brands can go upwards of ₹50 lakhs. Assess your budget and make sure to include setup, interiors, stock, and licensing costs in your calculations.

2. Market Demand in Your Area

Study your local market carefully. Understand what kind of fashion sells in your region — ethnic, western, kidswear, or premium fashion. A franchise may have strong national presence, but success also depends on local tastes, trends, and purchasing power.

3. Brand Recognition and Customer Trust

The popularity and reputation of a brand play a big role in how quickly your franchise gains customers. A well-known name means less marketing effort and faster footfall. Look at online reviews, presence in other cities, and social media reach to judge brand strength.

4. Franchise Support and Training

Choose a brand that offers full support — from store design and layout to staff training, marketing guidance, and inventory planning. Good support makes it easier for first-time business owners to manage and grow their stores effectively.

5. Return on Investment (ROI)

Some franchises offer 30–50% ROI within 2–3 years, while others may take longer. Ask for financial projections and speak to existing franchisees if possible.

Government policies supporting textile and fashion franchise businesses in India

Through various initiatives and policies, it aims to boost domestic production, improve workforce skills, and increase global competitiveness. Here’s how:

1. Production-Linked Incentive (PLI) Scheme

This program provides financial rewards to textile and garment producers based on how well they perform.By encouraging large-scale production and value addition, the PLI scheme supports domestic manufacturers in competing globally and expanding exports. It also helps attract private investment and promote job creation in the organized textile sector.

2. Skill Development Initiatives:

Programs like SAMARTH (Scheme for Capacity Building in Textile Sector) aim to train thousands of workers, especially in rural areas, in various textile and garment-related skills. These programs enhance the capabilities of artisans, weavers, and garment workers, ensuring a skilled workforce that meets the needs of modern fashion businesses.

3. Export- and Trade-Friendly Policies:

The government actively promotes Indian textiles in international markets through trade agreements, export promotion councils (like AEPC), and participation in global trade fairs. Simplified customs procedures, duty drawback schemes, and subsidies help Indian exporters compete more effectively on the world stage.

Future Outlook: Why 2025 Is the Best Time to Start a Fashion Franchise in India

By 2025, India’s fashion sector is expected to rank among the largest globally—offering immense opportunity for growth, investment, and innovation. Here's why the future looks bright:

• Rising Consumer Spending: With a rapidly expanding middle class and increasing disposable income, more Indians are spending on style, trends, and branded fashion—creating massive demand across cities and towns.
•  Technology is Transforming Fashion: Cutting-edge tools like AI for trend forecasting, VR for virtual try-ons, and blockchain for supply chain transparency are making fashion retail faster, smarter, and more customer-friendly.
•  Global Spotlight on Indian Fashion: Indian fabrics, ethnic wear, and sustainable fashion are gaining international attention. More Indian brands are making their mark on global runways, helping franchises at home benefit from stronger brand value and global trends.

This is the ideal time to be part of India's booming fashion revolution—where tradition meets innovation and business potential meets global visibility.

Conclusion:

In 2025, the fashion industry in India will change a lot. It will focus more on being eco-friendly, using new technology, and including everyone. Though there are challenges like tough competition and environmental problems, brands that try new ideas and respect Indian culture will grow strong. As old and new styles mix, 2025 will be an exciting time for fashion businesses and shoppers in India.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.