Online fashion retail in India: Key market research findings
- Availability of numerous payment options drives market growth
- Men’s clothing segment is the dominant shareholder in the market
- Key vendors—Amazon, Flipkart, Snapdeal, Jabong, and Yepme
Technavio’s market research analysts predict the online fashion retail market in India to grow at a CAGR of almost 17% between 2016 and 2020. The availability of a wide array of payment options is the primary driver for growth in the market. The availability of numerous payment options, a wide range of products, broader reach, and lower costs is augmenting the preference for online shopping amongst consumers. Online shopping sites offer customers the opportunity to choose between a number of payment methods such as debit cards, credit cards, cash on delivery (COD), electronic wallets, smart cards, internet banking, and demand drafts. Favorable demographic factors, better return policies, and increasing adoption of digital and push marketing by vendors are some of the factors that will contribute to the growth in the online fashion retail market in India during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the online fashion retail segments by consumer segment.
“The distribution of users between mobile applications and websites is an ongoing trend in the market. Mobile apps have a tremendous impact on the growth of the online fashion retail market in India as they offer a faster alternative to mobile web browsing for consumers to shop on the go. Key players in the market are coming up with more sophisticated fashion apps designed to leverage each functionality on specific operating systems such as Windows, Android, and iOS. Online retailers are emphasizing on finding a balance between mobile applications and websites to cater to the masses who prefer shopping online,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
During 2015, men’s clothing online accounted for around 53% of the market share to dominate the online fashion retail market. However, more women in the country are likely to be employed and empowered financially in the coming years, thereby boosting growth in the women’s clothing online segment. Furthermore, hectic lifestyles and time crunch are encouraging women to transition towards online shopping rather than visit brick-and-mortar stores. The availability of premium women’s clothing is also projected to increase purchases and add more revenue by 2020.
The key players in the online fashion retail market in India include Amazon, Flipkart, Snapdeal, Jabong, and Yepme. Intense competition prevails in this market with most players selling broadly similar products that are of the same brands. However, the global players like Amazon and eBay are offering an impressive range of fashion products, which has posed a tough challenge for regional players like Flipkart and Snapdeal. As the purchase decision of consumers wholly depends on the prices of the products, it is important for vendors to focus on pricing strategies and the provision of innovative services. Since most users prefer COD and make a price comparison before making a purchase, the growth opportunity for new players is predicted to be high during the forecast period.
A more detailed analysis is available in the Technavio report, Online Fashion Retail Market in India 2016-2020.
We can customize reports by other regions and specific segments upon request.
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