What is the Potential of India Online Fashion Market?
Posted on 20 February 2017 by KenResearch Technology and Telecom,
Online fashion market in India is estimated to grow at a high pace in between FY’2015 and FY’2016. Rising internet and smartphone penetration, growing awareness among nationals, increasing demand from tier II and tier III cities, and rising disposable income of people in the country are the major factors which have been responsible for high growth of the market. Strategic marketing and promotional activities by existing players and entrance of new players with innovative business models also assisted in elevation of the total market GMV.
Additionally, the market has witnessed the entry of international and domestic brands in the market with many ecommerce players launching online fashion brands. For instance, Myntra launched HRX in the market during the period. Moreover, ecommerce players organized fashion
weekends to make connection between brand and consumers. Myntra is collaboration with IMG Reliance launched Myntra Fashion Weekends which was aimed to introduce new brands to customers.
Moreover, growth of Amazon in online fashion also supported the market GMV growth in FY’15. Amazon recorded six times increased sales in FY’15 in fashion segment compared to FY’14, hence resulting in overall GMV generation. Extensive investment on research and development activities is the major factor responsible for growth of the segment. Amazon India spent INR ~ crore and INR ~ crore on advertising and sales respectively during FY’15, clearly explaining the increased awareness about the website owing to advertisements. Other market players were also actively involved in advertising through social media.