Digital disruptor brands are projected to outpace the growth of the online fashion market.

With a 35 per cent compound annual growth rate, the market for these brands is expected to reach $10 billion by 2027-28 (FY28), up from $2.4 billion now.

Consumer preference for experimenting with new brands and the innovation from digital-first brands are driving this trend, according to a report by Bain & Company and TMRW House of Brands, an Aditya Birla Group venture.

The report, titled Digital Fashion Disruptors: Navigating the Future of Fashion, also said the overall online fashion market is anticipated to grow approximately $35 billion by FY28, with digital disruptors capturing about 29 per cent of the market share.

Digital disruptor brands are those that begin by selling online.

Digital disruptor brands are creating a new fashion playbook.

They have achieved a 33 per cent growth rate in the last four years and are expected to increase their share of the overall fashion market,  as Radhika Sridharan, a partner at Bain & Company, was quoted as saying in the report.

Generation Z (GenZ), exhibit a greater propensity to purchase these brands.

Certain historically fragmented sub-categories, such as ethnic wear and kids wear, are undergoing transformation with the growth and scaling of new digitally-led brands.

They are expected to see outsized growth in the next five years,  she added.

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