Domestic Fashion Market 2026 Growth, Influencers, and Retail Shifts

Key highlights

  • India’s fashion growth story in 2026 is less “runway” and more rails: ONDC-style networks, faster delivery promises, and tighter consumer-law compliance. ONDC | Open Network for Digital Commerce+1
  • Influencer marketing is maturing from vibes to disclosure + liability, with consumer-protection enforcement pushing brands to document claims and endorsements properly. India Code+1
  • The biggest retail shift: trust becomes a product feature—returns, authenticity, and transparent pricing decide repeat purchases.

India’s fashion market in 2026 isn’t just about new brands. It’s about how a kurta, sneaker, or lipstick actually reaches you—and what happens when it doesn’t match the promise.

What’s really changing in 2026

1) Commerce is getting “networked,” not just “marketplaced.”
Platforms still matter, but the bigger structural shift is the rise of interoperable commerce rails. ONDC’s public reporting (seller base, city coverage, order scale) is a signal that more shopping journeys will begin outside a single app and still end in a purchase. ONDC | Open Network for Digital Commerce

2) The influencer era is becoming compliance-heavy.
People still buy what creators wear. But what’s changing is the paperwork behind the post—brands are being forced to track what claims were made, what proof exists, and whether disclosures were clear. Consumer-protection law gives regulators teeth against misleading advertisements and unfair practices. India Code+1

3) “Fast fashion” meets “fast refunds.”
In a saturated market, the real differentiator is how a brand handles the ugly part: delayed deliveries, wrong sizes, colour mismatch, and return friction. The more competition grows, the more returns and support become a brand’s real marketing.

What shoppers should watch (simple, useful checks)

  • Before you pay: look for full seller identity + return policy in writing, not just “easy returns” banners.
  • After you pay: keep screenshots of product page claims and delivery timelines—these become evidence if disputes happen.
  • If it feels shady: consumer law is designed for exactly this—misleading claims, hidden charges, fake discounts. India Code

What brands should track (a practical compliance checklist)

  • Can you prove every claim? (“pure silk,” “handloom,” “sustainable dye,” “dermatologically tested”)
  • Are influencer collaborations documented with clear disclosure requirements and claim-approval workflows? Consumer Affairs
  • Are you prepared for higher return volumes without turning refunds into a reputation crisis?

Small questions people search
Is influencer marketing “illegal” if there’s no disclosure?
Not “illegal” by default—but it becomes risky fast if the endorsement looks like independent opinion while being paid, or if claims can’t be substantiated. Consumer-protection enforcement is moving toward accountability. India Code+1

Is ONDC replacing big apps?
No. Think of it as an additional set of rails that can lower dependence on one platform’s fees and algorithms—good for competition, but it also means brands must be consistent across multiple selling touchpoints. 

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