Retail Growth of Fashion Brands in Pakistan: A 2025 Perspective

Pakistan's fashion retail sector has experienced significant growth in recent years, driven by digital innovation, evolving consumer preferences, and the expansion of both local and international brands. As of early 2025, the market is valued at approximately $10 billion, reflecting a dynamic blend of traditional and modern retail practices

The Digital Transformation of Fashion Retail

The rise of e-commerce has been a game-changer for Pakistan's fashion industry. Platforms like Daraz have played a pivotal role in bridging the gap between consumers and a diverse range of fashion products. Daraz's strategy includes partnerships with small-scale manufacturers, providing them with consumer data to tailor products effectively. This approach has led to significant increases in orders and has made fashion more accessible across various socioeconomic segments 

Similarly, brands like Sapphire have embraced digital channels to enhance customer engagement. By integrating AI-driven personalization tools, Sapphire has seen substantial improvements in online sales metrics, including a 98% increase in average order value and a 244% rise in conversion rates 

Shifting Consumer Preferences

The Pakistani consumer landscape is evolving, with a noticeable shift towards ready-to-wear (pret) clothing. This trend is particularly prominent among millennials and Gen Z, who prioritize convenience and style. The growing participation of women in the workforce has further fueled demand for practical yet fashionable attire 

Social media platforms like Instagram and TikTok have also influenced fashion trends, with consumers increasingly seeking styles endorsed by influencers and celebrities . This digital influence has led to a surge in demand for trendy, affordable clothing options.

The Role of Major Fashion Brands

Khaadi: Established as a leading fashion retailer, Khaadi has expanded its footprint both domestically and internationally. With 57 retail outlets across Pakistan and a presence in the UK and GCC countries, Khaadi continues to innovate in retail experiences. The brand's initiatives, such as the "Experience Hub" in Karachi, exemplify its commitment to immersive customer engagement 

Sapphire: Since its inception in 2014, Sapphire has grown rapidly, operating over 45 retail outlets in Pakistan and expanding internationally with stores in the UK and UAE. The brand's focus on ready-to-wear collections and digital transformation has contributed to a 52.9% year-over-year revenue increase, reaching PKR 32.74 billion in FY24

Sustainability and Ethical Fashion

Sustainability has become a focal point in Pakistan's fashion industry. Designers are increasingly adopting eco-friendly materials and ethical production practices. This shift aligns with global trends and meets the growing consumer demand for responsible fashion choices 

Challenges and Opportunities

Despite the positive trajectory, the fashion retail sector faces challenges, including inflationary pressures and the need for greater consumer awareness regarding sustainable practices. However, the industry's adaptability and the proactive strategies of key players position it well for continued growth.

The fashion retail landscape in Pakistan is undergoing a significant transformation, characterized by digital innovation, changing consumer behaviors, and a commitment to sustainability. As brands continue to adapt and evolve, the sector is poised for sustained growth, offering exciting opportunities for businesses and consumers alike.


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