“Will India be the next China?” is a question that’s circulated throughout the fashion industry for years. Even as its population and economy both surge, India’s cultural tapestry and fragmented retail landscape set it apart from its northern neighbour.

At BoF VOICES 2024, Ravi Thakran drew on his experiences pioneering luxury growth for Swatch in 1990s China and leadership of LVMH in Asia to share his unique insights on the many differences between the world’s two most populous countries, and why European luxury brands have not yet managed to really crack the Indian market.

“India is now across China and growing faster. But when it comes to the luxury market — talk of any brand, be it Mercedes-Benz, BMW, Louis Vuitton, Cartier — India is less than 1%,” says Thakran. “India's stupendous growth is right in front of us, but the bulk of that growth is led by a very young population with a very low per capita income. So if you are an aspirational player, go to India today. This will be your biggest play going forward. In luxury, you still have to work.”

Thakran unpacks the dynamics of economic growth in India, explains why its path won’t mirror China’s, and shares insights on how to succeed in one of the world’s most complex yet promising markets.

Key Insights:

• From garments to accessories, Asia has scaled production to supply most of the global market. Simultaneously, it’s also the top consumer region for many categories, making Asia pivotal in both supply and demand equations. Despite this, its share of value in these categories remains low: “Asia is now the largest market of the world and across [garments, accessories and watches], more than 50%. … How come its share of value in these categories is so low?” queries Thakran. “Value resides in brands. And where do these brands live? The brands today for these categories are still in Europe and the USA.”

• While India’s market is huge, it is fragmented and complex. Challenges for fashion brands include high import duties, limited retail infrastructure and a deeply rooted tradition of local attire. Western brands need to adapt to India’s cultural context if they hope to gain traction. “LVMH is not a luxury enough for India. … Indian luxury will always remain very Indian. Unless you Indianise, you're unlikely to crack that market,” says Thakran.

• Drawing on teachings from Buddah and Gandhi, Ravi underscores that Asia’s rising wealth need not translate into mindless consumption. Gandhi’s simple lifestyle and the Buddha’s teachings on desires offer a philosophical counterbalance that resonates in today’s sustainability-conscious world. “While we are trying to make India adapt to the West, I think there is a message for the West to adopt from India," says Thakran.

Additional Resources:

• BoF VOICES 2024: Fashion’s Next Moves
• Where Fashion Is Finding Growth in Asia as China Stalls | BoF
• Luxury’s China Priorities in the Year of the Snake | BoF

Hosted on Acast. See acast.com/privacy for more information.

After a prolonged slowdown, fashion’s M&A market is springing back to life. A combination of falling interest rates, shifting investor sentiment and optimism around economic policy has fuelled a wave of early 2025 deals. Within the first few weeks of the year, brands like True Religion and Kapital were acquired by private equity firms and holding companies, signalling renewed confidence in fashion investments.

However, not all acquisitions are about aggressive growth. Some buyers specialise in “managed decline,” acquiring struggling brands to extend their lifespan through licensing or cost-cutting. Others, including private equity firms and strategic buyers, see opportunities to scale promising brands by injecting capital and expertise.

“The key for a lot of these companies in finding buyers is proving that their brands are still worth it and can weather these economic cycles and lulls in the market,” shared e-commerce correspondent Malique Morris.

Executive editor Brian Baskin and senior correspondent Sheena Butler-Young sat down with Morris to break down the latest deals, the brands poised for sale, and what it all means for fashion in 2025 and beyond.

Key Insights:

• A number of converging factors are driving a new wave of fashion mergers and acquisitions in 2025. Falling interest rates, Trump’s re-election driving investor optimism, and shifting regulations have all played a part in fuelling new acquisitions. “Retailers reported strong holiday sales in 2024, and even though much of that was driven by discounting, it signalled that consumers were still spending,” says Morris. “That kind of activity gives investors more confidence in backing fashion businesses.”

• Buyers are looking for brands with strong customer loyalty, an engaged audience, and clear growth potential that can weather the ebb and flow of the market. Brands need “good stewards to help them find the best resources to expand without hurting their legacy, whether that be money, retail networks, or supplier relationships,” explains Morris. “It's important to have the resources you need to maintain relevance and compete for consumer attention.”

• Beauty remains a hotbed for M&A activity. “Unlike fashion, beauty hasn’t faced the same investor hesitancy,” says Morris. “Brands like Merit, Westman Atelier, and Makeup by Mario are seen as prime acquisition targets, while Rare Beauty could be the defining beauty deal of the decade.”

• Overall, buyers are prioritising brands with strong customer loyalty and cultural relevance. “They're seeking brands with ample customer loyalty and a passionate consumer base that will keep their names in the public consciousness, irrespective of what recent sales growth will look like,” says Morris. He adds, “The thing that is top of mind is, what is the value of your brand? That’s an honest conversation that I’m not sure all companies have with themselves, let alone with buyers.”

Additional Resources:

• What’s Behind the 2025 M&A Wave | BoF
• Fashion’s Most Anticipated M&A Hot Spots in 2025 | BoF

Hosted on Acast. See acast.com/privacy for more information.

In a special episode, BoF founder and editor-in-chief Imran Amed joins Bob Safian on The Rapid Response podcast.

“This is probably the most severe crisis that I've seen in the luxury side of the fashion industry since the Great Recession of 2008,” says Amed. “The business model and approach that the luxury industry has been using for the last decade or so is running out of steam.”

In their conversation, Amed and Safian discuss the cracks in the current luxury formula, the untapped potential in older demographics, and how brand and product innovation have the potential to revive the sector.

Key Insights:

• Amed warns that the go-to strategies for luxury brands, such as over-expansion and relentless price hikes, are no longer sustainable. He highlights how the slowdown in Chinese consumer spending and a sharp drop in aspirational buyers who “gorged on luxury products during the pandemic” are exposing the cracks in this long-established playbook.

• While the industry has long speculated on whether India might be ‘the next China,’ Amed believes real growth is finally within reach. Thanks to a flourishing middle class, improved retail infrastructure and widespread mobile internet, international brands are eyeing India’s vast consumer base with renewed interest. However, success demands culturally informed approaches: “The smart brands are going to really find the right talent, Indian local talent, and empower those leaders,” says Amed. “The Indian market is on the precipice of something really big but it’s not going to be easy.”

• Amed acknowledges the widespread but often discreet adoption of artificial intelligence: “I think as with a lot of things AI, everybody’s using it, but not everyone’s talking about how they’re using it,” he said. However, he cautions that “to create something really, genuinely novel, interesting, disruptive, creative, and beautiful, a human has to be involved,” reminding brands that while AI can accelerate ideation, authentic creative vision remains the domain of designers themselves.

• Amed believes the current turbulence will drive fashion leaders to rethink their strategies: “What’s exciting about a time like this is it forces companies to innovate because the market isn’t growing super fast anymore,” he said. He explains that to thrive under tougher conditions, businesses “have to take market share from someone else,” meaning it is no longer enough to repackage old ideas. Pointing to brands like Miu Miu and Brunello Cucinelli, which are still achieving significant growth, Amed sees promise in those who offer “something different and special,” rather than relying on the template approach that has dominated fashion in recent years.

Additional Resources:

• The State of Fashion: Luxury | BoF
• Luxury Slowdown Could Last Longer Than Previous Crises, Chanel Watches and Jewellery President Warns
• The BoF Podcast | The Great Luxury E-Commerce Reckoning

Hosted on Acast. See acast.com/privacy for more information.