The fashion ecommerce industry in India has grown exponentially in recent years owing to rising smartphone and internet penetration across the country. More consumers are now shopping for clothes, footwear and accessories online due to the convenience and vast selection offered through fashion ecommerce platforms. These platforms allow customers to explore products from various national and international brands. They often offer attractive discounts, cashbacks, and deals that make online shopping more affordable. Products available on fashion ecommerce platforms range from traditional wears to western wears, sportswear, kids apparel, accessories and more. The comfort of online shopping has prompted many consumers to purchase fashion products from the ease of their homes.

The India Fashion Ecommerce Market is estimated to be valued at US$ 14 billion in 2024 and is expected to exhibit a CAGR of 34% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Opportunity:

The opportunity in online retail provides a large scope for growth in the India fashion ecommerce market. Over the last few years, online shopping in India has gradually become a mainstream activity. An increasing number of consumers across the country now prefer online channels like mobile apps and websites for their shopping needs. Areas beyond tier 1 and 2 cities are also emerging strongly in terms of internet and smartphone access. This allows fashion ecommerce platforms to tap into the vast consumer base residing outside major metropolitan regions. With investments and strategic partnerships, these platforms can penetrate deeper into rural and semi-urban pockets, driving further growth in online retail and ramping up their customer base over the forecast period.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants is low as the Indian fashion e-commerce market is dominated by few established key players. Large capital requirements and existing customer loyalty towards brands pose significant barriers.

Bargaining power of buyers: The bargaining power of buyers is high given the presence of multiple options. Buyers can easily switch between brands based on price, quality, discounts and promotions.

Bargaining power of suppliers: Fabric manufacturers and textile suppliers have low bargaining power due to presence of large number of vendors. Established brands can source from alternate suppliers.

Threat of new substitutes: Threat from new substitutes is medium as despite growth of e-commerce, offline retail channels still account for major share of fashion sales in India.
Competitive rivalry: Competition is intense among existing players focusing on expansion, customer acquisition through discounts and strengthening supply chains.

SWOT Analysis:

Strengths: Strong brand recognition, wide product portfolio, robust fulfillment network, tech-enabled platform.
Weaknesses: High customer acquisition and retention costs, supply chain disruptions can impact operations, suboptimal offline presence.
Opportunities: Growing middle class, increasing internet and smartphone penetration, untapped rural markets.
Threats: slower economic growth can dampen discretionary spending, tight regulation can impact business models.

India Fashion Ecommerce Market Segmentation:

• By Product Type
  • Apparel
  • Footwear
  • Accessories
  • Beauty and Personal Care
  • Jewelry
  • Others
• By End User
  • Men
  • Women
  • Unisex
  • Kids
  • Others
• By Price Range
  • Premium (above INR 3000)
  • Mid (INR 1000 - 3000)
  • Economy (below INR 1000)
• By Category
  • Ethnic Wear
  • Western Wear
  • Sportswear
  • Innerwear and Loungewear
  • Winterwear
  • Formalwear
  • Others
• By Retail Format
  • Marketplace Model
  • Inventory Model
  • Hybrid Model
  • Aggregator Model

Key Takeaways:

The India Fashion Ecommerce Market Size is expected to witness high growth over the forecast period driven by rising incomes, rapid urbanization and increasing smartphone users. The market size is projected to reach US$ 14 billion by 2024 registering a CAGR of over 34%.

Regional analysis indicates that the southern region currently dominates led by states like Karnataka, Telangana and Tamil Nadu attributed to strong tech adoption. However, northern and western regions are expected to be the fastest growing regions over the coming years as tier 2 and 3 cities in these regions increasingly get online.

Key players operating in the India fashion e-commerce market are Nykaa, Meesho, Jabong, Snapdeal, Limeroad, Trendin, Myntra, Ajio, Flipkart, Amazon India. Players are focusing on strengthening their logistics infrastructure as well as augmenting product portfolio across categories to gain market share in this lucrative space. Partnerships, private labels, and leveraging artificial intelligence for personalized recommendations are some strategies being adopted to drive competitive edge.

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