Muslims spent an estimated $244 billion (Dh895.5 billion) in 2015 on apparel globally, according to a new report published by Salaam Gateway, the Global Islamic Economy Gateway.
The report identified over 1,000 OIC-based manufacturers of apparel, 146 key modest fashion brands, and 85 e-commerce retailers. Modest fashion represents a key sub-segment of Muslim spending on clothing, underpinned by Islamic religious obligations, with requirements for both men and women.
The report shows that female spending represents a larger market opportunity, accounting for two thirds of global apparel spending.
There are substantial opportunities for growth in the modest fashion industry and this has been recognized by more than 25 mainstream companies that recently entered this market including brands such as Dolce and Gabbana, DKNY, H&M and John Lewis.
Mainstream fashion is fairly saturated while modest fashion is turning into the mainstream. The modest fashion-specific brands and companies’ landscape is highly fragmented with no global modest fashion players currently.
According to the report, fund managers spotted several opportunities and had already invested in emerging players including a Turkey based e-commerce retailer called “Modanisa” which received $5.5 million (Dh20.2 million) in 2015 and an Indonesian brand “HijUp” which received a seven-figure investment.