by The fashion industry in India has witnessed tremendous growth in recent times primarily attributed to the expansion of online retail platforms and rising internet penetration in the country. A wide array of fashion products ranging from clothing, footwear, accessories to cosmetics are available on various fashion e-commerce sites offering novel designs, styles and affordable price points compared to traditional retail outlets. This has triggered strong demand for online fashion shopping in Tier 1, Tier 2 and Tier 3 cities of India.
The India Fashion E-commerce 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.
The India fashion e-commerce sector provides consumers with a wide range of domestic and international brands as well as cutting-edge designs by emerging designers at the click of a button. Moreover, deep discounts, cashback offers and lucrative festive season sales have made online shopping an affordable option for all income groups in the country. The comfort of shopping from home and doorstep delivery has further increased popularity of fashion e-tailing in India. Advancements in logistic infrastructure and same-day delivery services by major players are also augmenting industry growth. The rising working women population and increasing brand consciousness among millennials and Gen Z is further propelling demand for fashionable clothing, accessories, makeup and beauty products through digital platforms.
Market Key Trends:
One of the key trends prevailing in the India fashion e-commerce market is the growing popularity of social commerce. Majority of fashion retailers are leveraging social networking platforms like Facebook, Instagram and YouTube to launch live interactive shopping sessions, contests and influencer marketing campaigns to engage customers. This enhances customer experience and helps in converting online visitors into buyers. Furthermore, personalization is another trend being adopted by fashion e-tailers. Companies are offering customized product recommendations, fit guides, virtual try-on and stylist assistance to provide a unique shopping experience tailored to individual tastes and preferences. This enables higher customer retention and boosts repeat purchases.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants is moderate as the market is growing and has opportunities. However, brands need to invest in marketing and competitive pricing to acquire customers.
Bargaining power of buyers: The bargaining power of buyers is high in India’s fashion ecommerce market. Buyers can easily compare prices and products across different platforms.
Bargaining power of suppliers: Designers and brands have moderate bargaining power as popular ecommerce players can provide them large customer base and marketing support.
Threat of new substitutes: Threat from substitutes like retail stores, social commerce is low to moderate as ecommerce provides convenience of ordering anytime from anywhere.
Competitive rivalry: The competition among existing major players like Nykaa, Meesho, Myntra etc is high due to market leadership strategies and frequent promotional activities.
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 with a CAGR of 34%. Changing lifestyle, rising disposable income, fast adoption of smartphones and internet are driving adoption of online shopping. The India Fashion E-commerce 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.
Regional Analysis – North and West regions dominate the India fashion ecommerce market in terms of sales currently. The youth population in metros is more inclined towards online shopping and trendy apparels. East and South regions are growing rapidly.
Key Players – Nykaa, Meesho, Jabong, Snapdeal, Limeroad, Trendin, Myntra, Ajio, Flipkart, Amazon India are key players operating in the India fashion ecommerce market. Nykaa and Myntra are leaders in women and kids fashion while Amazon and Flipkart have strong portfolio across fashion categories. Meesho and Limeroad are providing affordable choices for masses.
*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
