India Ecommerce Market GMV is Expected to Grow at a Rapid Pace in Future Owing to Rising Number of Online Market Players
Posted on 23 February 2017 by KenResearch Technology and Telecom,
India E-Commerce industry is one of the most thriving industries in the world. Over the past few years, India is viewed as most favourable economy when it comes to trading online. Increased internet penetration and rise in the number of smartphone users in India has made e-retailing an emerging opportunity for the people of the country. Global online players such as Amazon and eBay witnessed a steady growth at global level, when Flipkart was launched in India in year 2007
The online fashion market in India is still in its growth stage, while it showcases promising outlook for the future. Customers still have a preference for touch and feel concept before purchasing apparel and footwear, which has restricted a large population group to make online purchases.
Online fashion is emerging as the fastest growing category in India’s booming e-commerce market, backed by strong technology as well as marketing dexterity. Online fashion sites such as Myntra, Jabong, Amazon, Koovs, Limeroad and other fashion vertical players have lured shoppers to come online for making online purchases. It has been observed that every third online search for e-commerce in India relates with fashion, which has led fashion to contribute substantial share in the market.
Furthermore, clothes and footwear are the two most popular categories in Fashion and apparel which is one of the three most sold online product category.
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.
The demand for watches, bags and imitate jewelry has been observed to increase among the women in accessories segment. The availability of various brands in low cost is the major factor responsible for high demand and subsequently high revenue contribution.
With new players entering into the eyewear market, the demand for sunglasses has shown a significant increase over the past few years especially international brands. However, instances of sales of counterfeit sunglasses over online shopping sites in India have restricted the demand.
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Head Marketing & Communications