How the Fashion Industry is Evolving Post Pandemic
A Quick Summary for Company Executives
The fashion industry in Pakistan has undergone significant change since the pandemic ended. People have rapidly adapted to new brands and digital technologies, which is why this is happening. In 2024, the e-commerce market was valued at $7.7 billion, and fashion was one of the most popular categories . By 2027, the industry is projected to reach a valuation of US$12 billion, with a compound annual growth rate (CAGR) of 17% . This remarkable expansion indicates that the post-pandemic situation is returning to normal. Additionally, the way Pakistani consumers search for, purchase, and discuss clothing has changed significantly.
Digitalisation was accelerated by the COVID-19 pandemic. While existing online stores had the opportunity to expand, those that didn’t had to quickly establish their own. By leveraging social media, offering distinctive value propositions, and adapting to consumers’ shifting demands for sustainability, fusion clothing, and authentic cultural expression, new Pakistani fashion brands can now compete with established ones.
The Digital Acceleration: How Online Buying Is Transforming Pakistan’s Fashion Sector
The Market’s Size and Trajectory
The online shopping market in Pakistan has expanded significantly over the past several years. Sales for the entire e-commerce industry in 2023 totalled $5.2 billion. It increased to $7.7 billion in 2024. Fashion is now a big part of this system. The e-commerce fashion market generated US$946 million in 2024, a 15–20% increase over the previous year .
The industry is expected to grow faster, with the entire e-commerce market potentially valued at $12 billion by 2027, according to experts . Because fashion, beauty, home and living, and electronics are consistently among the best-selling product categories, people are very interested in shopping online in these areas .
The Key Factors That Contribute to Growth
A number of factors are combining to bring about Pakistan’s revolution in fashion e-commerce:
- Smartphone Penetration and Digital Adoption
- Tech-savvy young people in Pakistan have jumped right into mobile commerce. Approximately 80% of Pakistani consumers who shop online do so on their smartphones, and 91% of online shoppers use their phones. People use their phones to search for and purchase clothing these days, making social media platforms like Instagram and TikTok crucial.
- Internet Access
- As more and more people use the internet, the market for online shopping has grown, particularly among Pakistan’s youth, who comprise a sizable portion of the population . This digital link has enabled fashion brands to reach markets in rural and smaller cities that they were previously unable to reach.
- The Pandemic Altered People’s Behaviour
- The COVID-19 lockdowns and store closures, for instance, caused more people to shop online, and these trends have persisted even after the pandemic. People who initially had to shop online continued to do so because it was more convenient, offered a wider range of options, and was less expensive .
- Social Media’s Influence
- Influencers and social media platforms have a significant impact on what people desire and purchase, particularly in fashion and beauty . Content creators have transitioned from critics to curators and entrepreneurs. Many people have started their own clothing lines because they have large social media followings.
Who in Pakistan Shops Online for Clothing?
By getting to know Pakistani online fashion shoppers, brands can discover a lot:
- Online purchases typically cost $122 .
- Forty percent of Pakistani consumers make more than one online purchase per month.
- The primary motivators for purchasing are price (51%), free shipping and low prices (51%), easy returns (27%), a range of payment options (26%), and speedy delivery (52%).
- 75% of transactions still use cash on delivery, making it the most popular method of payment. People are using credit cards less frequently and have less faith in them, which is why this is happening .
- Price remains a major concern for consumers, who want the best value for their money.
The Pandemic as a Spark: What Business Prospects Hold Between 2020 and 2025
The Initial Issue Was Followed by a Prearranged Solution
Pakistan’s textile and fashion industries initially suffered greatly from the COVID-19 pandemic. Pakistan’s textile sector, which employs over 10 million people and accounts for nearly 60% of its exports, faced numerous challenges in 2020. For example, lockdowns, supply chain issues, layoffs, cancelled orders from Europe and North America, and plant closures.
But business was booming. The government devised a robust support package that included energy subsidies, reduced gas and electricity prices for textile exporters, low-interest loans for upgrading machinery through the Temporary Economic Refinance Facility (TERF), and tax-free importation of raw materials such as cotton and polyester yarn . Together with favourable exchange rates, these factors contributed to a significant increase in exports by 2021. $15.4 billion was spent on apparel and textile exports .
Transformation of Retail and Manufacturing Through Digital Transformation
In addition to the crisis, the pandemic accelerated significant changes in the business practices of Pakistani fashion companies.
In an effort to reduce costs and increase production, major exporters such as Interloop, Nishat Mills, and Artistic Milliners invested heavily in ERP systems, production monitoring platforms, digital sampling, and 3D prototyping. To monitor cotton’s origins and ensure that workers comply with regulations, they also implemented blockchain pilot projects. Additionally, they used machines to aid in the spinning and dying processes.
Fashion brands and retailers had to swiftly launch online stores after their physical locations closed. Popular brands like Khaadi, Sana Safinaz, Generation, and Gul Ahmed made online shopping much simpler . We were able to sell products in a new way, but it also required us to learn how to manage digital marketing, online inventory, shipping, and customer support.
During the lockdowns, people’s tastes varied greatly, changing the product mix. While people wanted more loungewear, athleisure, and casual clothing, they didn’t want as many fancy or special-occasion outfits . Pakistani designers swiftly adapted their collections to include comfortable pieces suitable for special occasions or for home wear. This adaptability demonstrated the speed at which the company could transform.
Various Methods by Which People Are Obtaining Things
The pandemic had long-lasting effects on Pakistani fashion consumers’ behaviour:
- It is simpler to purchase items online without physically seeing or trying them on .
- A growing number of consumers desire smooth experiences across all platforms, including online and offline.
- Businesses are more conscious of how hygienic and secure products are.
- When it became evident that the supply chain was having issues, more people started to show interest in eco-friendly and socially conscious fashion.
- An improved connection to social media and online forums for fashion inspiration and approval.
Emerging New Brands: Businesses That Break the Law
What Distinguishes Emerging Fashion Brands in Pakistan From Others?
Though a new generation of emerging brands is gaining recognition and occupying more space, Khaadi, Sana Safinaz, Gul Ahmed, and Generation remain very well-known. A few characteristics set these new players apart from one another:
Digital-First Mindset
New brands are businesses that were created with a digital-first mindset. In contrast, legacy brands expanded their physical stores by adding online features. They are excellent at social media, influencer collaboration, and data-driven marketing .
Niche Positioning
Instead of aiming to outperform major brands in every category, new brands often try to carve out a niche by focusing on a few key areas, such as eco-friendly fashion, fusion wear, affordable luxury, modest fashion, or artisan collaborations.
True Storytelling
By sharing personal tales, staying loyal to their culture, and being open about how they create their products, new brands can emotionally connect with their customers. They are aware that today’s consumers—younger consumers in particular—care about brands that have values and a mission beyond their products.
Agility and Trend Responsiveness
Because they are not bound by the issues that come with being part of a large corporation, new brands can swiftly adapt to market shifts. They can use viral social media trends or discuss new consumer concerns about sustainability, for example.
Brands That Are New and Truly Making an Impression
Karma Collection is worth a look for women who wish to look good. In addition to combining modern and historical styles, the colours are vibrant and organic. The company manufactures a wide range of items, including lawn suits, chikankari, and elegant formal gowns. It is easily accessible from anywhere in the nation due to its robust online presence .
Ahmed Manan, a young designer, has a distinct viewpoint that carefully balances tradition and modern minimalism, as well as regional roots and a global sensibility. Planning cuts, well-made fundamentals, and narratives that highlight the quality of the work are all hallmarks of Ahmed Manan’s style. Given that it appeals to women who wish to look good while doing good, the brand is rapidly rising to prominence as one of Pakistan’s top women’s clothing brands .
Jeem’s bold fusion of luxury, creativity, and cultural tradition is revolutionising the way people think about bridal and high-end pret. The brand uses traditional methods and modern shapes to create stylish, high-quality, environmentally friendly clothing. The success of Jeem’s collections has been the subject of much discussion .
Though it was founded in 2017, Generation combines both contemporary and historical brands. By 2025, Generation had over 1.2 million Instagram followers thanks to consumers’ appreciation of its distinctive designs and vibrant colours. Their advertisements empower women and honour their cultural identities in addition to selling clothing . Outside of Pakistan, Khaadi’s sales increased by 25% in 2024, while Sana Safinaz’s online sales increased by 30% .
The Brand-Creator Path
The emergence of fashion brands founded by digital content producers, such as models, stylists, photographers, and influencers who had a large fan base prior to launching their own businesses, is one notable trend . Establishing a fashion company in this manner, where brands collaborate with creators, is a significant shift.
These creator-brands have a lot of fantastic qualities:
- Groups of people who are already interested in your offerings, which means you have clients already.
- A wealth of knowledge about social media algorithms and how to create content that works.
- A genuine bond with the crowd.
- The opportunity to test products and get feedback before they are permanently released.
- You can speak with people directly, which lowers the cost of marketing.
Those who did not attend design school or have family members in the manufacturing sector can still succeed in the fashion industry. It is predicated on having good taste, forming friendships, and being proficient with computers .
The Way Pakistanis Shop Has Changed Since the Pandemic, Driven by Fashion Trends
Fusion Clothing: Merging the Modern and the Traditional
One of the most in-demand fashions for 2024–2025 is fusion wear. It seamlessly blends traditional and contemporary Pakistani styles . This style includes kurtas with edgy shapes, lehengas with crop tops, shalwar kameez with uneven cuts, and traditional embroidered items with contemporary accessories.
Pakistanis love fusion clothing because it demonstrates more than just style. This is especially true for younger urbanites who wish to showcase their contemporary style while maintaining a connection to their heritage. Well-performing brands are versatile, so items can be dressed up or down with appropriate styling.
Fashion That Benefits Both People and the Environment
Environmental consciousness among Pakistani fashion designers is rapidly growing. More and more consumers are prioritising companies with transparent supply chains, eco-friendly textiles, and fair labour practices.
Many Pakistani brands profit from their environmental responsibility. FibreTrace collaborated with Sapphire and Artistic Apparels to employ environmentally friendly Good Earth Cotton, which can be tracked throughout the entire supply chain . Yunus Textile Mills and Ocean Safe AG collaborated to create environmentally friendly, round, and naturally degradable home textiles .
Pakistan is adopting environmentally friendly fashion. This is also consistent with the cultural values of caring for others and handling money responsibly. More young consumers are becoming aware of the environmental impact of fashion. Businesses with a strong environmental conscience are at a distinct advantage.
Soft Hues, Floral Patterns, and Digital Prints
Pakistani fashion has a wide range of popular styles, including:
Patterns of Flowers
Floral prints have significantly transformed society. Numerous renowned designers have produced clothing lines featuring many floral patterns suitable for both formal and informal settings.
Light and Pastel Colours
Because Pakistan is hot, pastel colours like mint green, blush pink, and powder blue are popular for semi-formal occasions and daily wear . In hot weather, these pastel colours look elegant and pleasant.
Digital and Block Prints
In addition to block prints of geometric shapes and flowers, many contemporary Pakistani fashion pieces use high-quality digital printing techniques. Both modern and traditional styles are available.
Excessive Silhouettes
During the pandemic, people wanted to wear even more comfortable, larger clothing, and this trend is still going strong. Clothing that flows, loose shirts, and wide jeans are all comfortable and stylish at the same time .
Color Trends for 2025
Both culture and nature serve as inspiration for the 2025 colour scheme. Because it symbolises luxury and new beginnings, emerald green is a popular colour for wedding and holiday attire. Rust orange and terracotta are also popular because they evoke feelings of the earth and the past. Royal blue and dark maroon are suitable hues for formal settings. Black and white are always good colours.
The Competition Pits New Players Against Those Who Have Been Around for a While
Key Players and the Market’s Structure
Only a few major platforms and well-known brands dominate Pakistan’s fashion e-commerce market. By 2024, Daraz will have $876 million in sales, making it the largest online retailer. Many people purchase clothing from two well-known fashion brands, Sapphire Online and Khaadi. Approximately 2 per cent of all online sales in Pakistan are made on the top three fashion websites, khaadi.com, gulahmedshop.com, and limelight.com.
Because the market is so crowded, there are many opportunities for new brands to gain more clients. They can achieve this by providing distinctive value propositions or by concentrating on underserved niches.
How New Companies Aim to Attract Clients
To contend with more established brands, emerging Pakistani fashion labels employ a variety of tactics:
Community-Centric Marketing
New brands don’t employ traditional advertising methods. By engaging with people on social media in a genuine manner, they instead create devoted communities. They run user-generated content, collaborate with influencers, and conduct interactive campaigns that engage people .
Price-Value Positioning
The “affordable luxury” market is one many new brands aim to enter. This implies that although their prices are lower, their designs and craftsmanship are on par with those of luxury brands. Those who want to feel and look good without breaking the bank.
Flexibility Across Channels
Successful new brands begin as digital-first but also intend to establish a physical presence through flagship stores in strategic markets, pop-up shops, or collaborations with other brands. With this omnichannel strategy, customers can quickly browse and touch products online .
Cultural Authenticity
Emerging brands often claim ties to regional artisan communities, traditional craft methods, and cultural heritage. Those who wish to support local artists and preserve cultural customs like this authenticity .
Issues That New Brands Face
Although there are many opportunities for fashion brands that are just getting started in Pakistan, they also face numerous challenges:
- A sluggish and unreliable logistics system, which increases delivery time and expense .
- There are insufficiently qualified individuals in the region to create and manage e-commerce websites .
- The government collects taxes, issues licenses, and ensures that people abide by the law by hand .
- It is challenging to obtain funding and loans for growth and stocks.
- People are more likely to believe in and trust well-known brands than they are to believe in you.
- Problems handling a large volume of refunds, returns, and customer service inquiries.
Pakistani Fashion Is Expanding Worldwide: Prospects Beyond Boundaries
Pakistani Fashion in Other Global Locations
Individuals from all over the world, particularly those living outside Pakistan and who enjoy distinctive clothing, adore Pakistani fashion. The most likely countries for people to purchase Pakistani clothing online are the US, UK, UAE, Canada, Australia, Europe, and the Gulf nations .
The UAE and Saudi Arabia are home to the majority of Pakistanis living outside of Pakistan. Fashion items’ sales, however, are significantly impacted by the diaspora’s financial situation, the value of the currency, and the regulations governing the importation of goods into each nation . The United States and the United Kingdom already have robust Pakistani communities that maintain cultural ties, and people there have plenty of money to spend. Businesses have benefited from this.
The Potential for International E-Commerce Growth
International e-commerce trade totalled $784.6 billion in 2021. It is projected to grow by 26.2% annually between 2022 and 2031, reaching $7.9 trillion by that year . This significant expansion presents Pakistani fashion brands with an excellent opportunity to grow internationally.
People are familiar with Pakistani brands in many parts of the world. Globally, Sana Safinaz has solid international retail partnerships, Khaadi has more than 50 stores, and Generation is growing in popularity . New brands are using the internet to reach consumers worldwide without opening new locations.
Things That Prevent the Growth of Other Nations
It is challenging for Pakistani fashion brands to expand internationally:
- Producers lack sufficient knowledge of quality standards and how to adhere to them in other nations.
- Not as well-known globally as prominent fashion hubs such as India.
- Customers from other nations don’t have many effective channels for complaining and getting issues resolved.
- Difficulties with cross-border shipping.
- The inability to process credit card payments and transaction fees.
- The regulations governing what can be brought into a country and the amount of customs duties required vary from one nation to another.
- The price of shipping and the delivery time can reduce a company’s ability to compete.
To address these challenges, fashion brands, government organisations, logistics firms, and banks will need to collaborate to develop the infrastructure required for global e-commerce .
Prospects for the Future: Developments That Will Affect the Upcoming Evolutionary Stage
Additional Links on the Internet
Every aspect of Pakistan’s fashion industry will remain digital. A few of the anticipated changes include improved augmented reality (AR) and virtual try-on technologies, recommendation engines and personalisation driven by AI, blockchain for supply chain authentication and transparency, and social commerce, which enables direct purchases through social media platforms .
Both Diversity and Inclusion
It’s been said for a while that the Pakistani fashion industry lacks diversity and isn’t accessible to all. Now, the industry is beginning to take action. Brands will likely offer more sizes to fit a wider range of individuals in the future. Marketing will feature individuals from diverse backgrounds, skin tones, and body shapes. Adaptive fashion will be accessible to people with disabilities, and Pakistan will be more receptive to regionally specific fashion trends .
The Popularity of Eco-Friendly Fashion
As people become more environmentally conscious, sustainable fashion will become the norm rather than a niche. Among these changes are the adoption of circular fashion models, which include rental, resale, and recycling programs; the use of more organic, recycled, and new sustainable materials; the promise to monitor and reduce carbon footprints; and the normalisation of sharing supply chain information .
Constructing a Set of Guidelines
For Pakistan’s online fashion industry to realise its full potential, regulations and laws are necessary. The industry needs clear e-commerce regulations that ensure all players have equal opportunity to compete, laws that protect consumers when they make online purchases, simpler customs procedures for international trade, improved digital payment infrastructure, and policies that support the expansion of small and emerging brands .
The state must ensure that regulations are safe, promote innovation, and include all people. The industry’s ability to grow to $6.7 billion by 2029 will be significantly affected by this .
Final
In Pakistan, the fashion industry is at a turning point. Instead of irreversibly harming the industry, the COVID-19 pandemic accelerated the long-overdue digital transformation. It is now simpler for new fashion brands to compete with established ones thanks to e-commerce. It has also created new opportunities for manufacturers, artists, and creative entrepreneurs across the nation.
More than just a shift in the market, the emergence of digitally native brands demonstrates how Pakistani consumers are altering their search, evaluation, and purchase habits. These companies are successful not only because they produce superior goods but also because they engage their communities, tell authentic stories, and align their values with those of increasingly conscious consumers.
The fashion industry in Pakistan will have a bright future if it can embrace new technologies, grow its businesses while adhering to its principles, seize opportunities to go global, and receive infrastructure and government support.
Following the pandemic, Pakistan’s fashion industry has many challenges as well as many opportunities for all. Both new business owners and well-known brands are evolving to adapt to new realities. Those capable of fusing traditional craftsmanship with contemporary design, cultural authenticity with digital skills, and commercial success with social responsibility will write the next chapter in Pakistani fashion.
