The Indian clothing market is expected
to be worth $53.7 billion in 2020, making it the sixth largest globally,
according to the fourth annual state of fashion report by The Business of
Fashion and McKinsey & Company.
India, which has attracted global
brands like Zara, H&M and Marks & Spencer lately, saw the entry of
Japanese retailer Uniqlo. Recently, the government relaxed local sourcing norms
in single-brand retail, providing further impetus to the industry.
The
industry has also evolved quickly in past years, by transforming traditional
clothing to modern design that represent a fusion of ethnic wear with western
wear to associate with young population. Further, drivers such as economic
growth, ease of payment, and other seamless experience have led to significant
growth in the women’s ethnic wear market.
India currently has one of the world’s largest young population.
Currently around half of the total population is below 25 years of age. This
age group represents one of the biggest consumer group of textiles and apparel
and is expected to drive the spending over the next five years.
GOVERNMENT
AND MANUFACTURERS FOCUS ON SUSTAINABILITY
Sustainability has been
a major concern for many consumers and manufacturers globally and is an area
players in womenswear
are
keen to explore. Apart from manufacturers, the government is also looking to
promote this cause.
The Indian
e-commerce industry has been on an upward growth trajectory and is expected to
surpass the US to become the second largest e-commerce market in the world by
2034. The e-commerce market is expected to reach Rs 13,97,800 crore (US$ 200
billion) by 2027 from Rs 2,69,076.5 crore (US$ 38.5 billion) in 2017. India's
e-commerce market has the potential to grow more than four folds to Rs
10,48,350 crore (US$ 150 billion) by 2022 supported by rising incomes and surge
in internet users. Online shoppers in India are expected to reach 120 million
in 2018 and eventually 220 million by 2025. Online retailers now deliver to
15,000-20,000 pin codes out of nearly 100,000 pin codes in the country.
E-Commerce and consumer internet
companies in India received more than Rs 48,923 crore (US$ 7 billion) in private
equity and venture capital in 2018. Online retail sales in India are expected
to grow by 31 per cent to touch Rs 2,28,540.3 crore (US$ 32.70 billion) in
2018, led by Flipkart, Amazon India and Paytm Mall. Online retail is expected
to contribute 2.9 per cent of retail market in 2018.
The advent of e-commerce has changed the way business is done in India.
By now it is pretty evident that e-commerce
is the future of retail, taking giant steps in terms of technology with each
year.
At present, India is the
world’s fifth-largest global destination in retail space. The Indian retail
market is estimated to be reaching around Rs 1,08,58,000 crore i.e US
$1,672 billion by 2027.
E-Commerce Growth
Digital innovation,
rising globalization, and changes in consumer spending habits have catapulted
the fashion industry into the midst of seismic shifts.
Let’s look at the
statistics, trends & strategies adopted by the e-commerce fashion industry
in 2019!
What are some of
the factors to drive fashion e-commerce in India?
India has a lot of
factors that are driving it to be one of the front runners in the fashion
eCommerce segment.
Growth of the
digital industry:
India is in the midst of a digital
revolution. The number of Internet users is likely to cross 650 million by 2020
and it is expected that half of the Indian population will be online in the
next 3 years.
E-COMMERCE
PLAYERS LAUNCH PRIVATE LABEL AND GAIN SHARE
E-commerce players
that earlier largely focused their businesses as online marketplaces are now
seeing a strategic shift as they continue to focus on launching their own private
label products at affordable prices to tap into consumer demand. For example, VMAXO, Flipkart, MLAXI launched its women’s
Western wear that targets women in the 22-25 year old age bracket in tier two
cities.
More Discussion :
