Feb, 2017     

Fashion e-tailing insights from OND-16


Overall Indian e-tailing grew to USD 14.5 Bn in 2016

India E-Tailing Internet Market-in USD Billions

  • Breakout year for sector
  • Flipkart crosses USD 1 bn GMV
  • Amazon, Snapdeal grow rapidly
  • Breakneck growth continues
  • Flipkart crosses USD 4 bn GMV run-rate while Snapdeal and Amazon touch USD 3 bn
  • GMV growth slows but GMV 'quality' and unit economics improve
  • Largest ever monthly GMV for sector in Oct'16 (sales) month

Fashion e-tailing market was largely flat through the year, even though there were multiple ups and downs in overall e-tailing

Annualized GMV Run Rate

(For Each Quarter in Calendar Year, Pre-cancellation, USD Bn)

Horizontals had the slightly edge over verticals in terms of market share throughout CY16

Online fashion retail, GMV share of Horizontals vs Verticals

  • Share of verticals increased in Q3 due to sales organised by the top players. Market leader Myntra's GMV during the month of July doubled due to its 'End of Reason Sale'
  • Share of horizontals increased in Q4 due to the festive season sales in October as well as end of season sales in December (organised by top horizontals Flipkart, Amazon, Snapdeal etc.)

However, in terms of delivery speeds, verticals were faster than horizontals

  • O2D speed decreased in Q3 for verticals and in Q4 for horizontals due to sales events in that period
  • Myntra is the industry leader in overall O2D speeds for fashion in any particular month of the year and is usually followed by Flipkart and Amazon

Customers of verticals also reported higher satisfaction vs horizontals

Customer NPS with Indian E-Tailers Per RedSeer's E-Tailing Leadership Index

  • Top verticals like Myntra, due to higher share of inventory-fulfilled orders, had better quality control over products unlike horizontals which are non-inventory and marketplace dominated
  • Better product quality combined with competitive prices as well faster delivery times leads to a better customer satisfaction for verticals

 

This document covers insights on online fashion e-tailing Industry from Q4CY’16.