Jan, 2017
Indian Fashion e-tailing Insights
The Indian e-tailing industry is looking up after three quarters of slump
Indian E-tailing Industry Annualized GMV Run Rate Growth
(For The Quarter, Pre-cancellation , USD Bn)
Fashion is a key contributor with ~20% of industry GMV share…
Indian E-tailing Industry Split By Category
(For The Quarter, Pre-cancellation , USD Bn)
- Electronics continues to dominate the industry, with a large share of sales coming from exclusives
- Share of fashion category has remained broadly stable over the last year but is expected to grow going forward, being a high margin category
In revenue terms fashion is the largest category in Indian online market
Category wise split of e-tailing industry revenues
- GMV for e-tailers with a heavy dependence on electronics category is essentially flimsy because of low category contribution to revenues
- E-Tailers would need to diversify a greater chunk of the sales to other higher margin categories like fashion and home to move towards profitability
Going forward, Fashion will be a key growth driver for the e-tailing market
- Online fashion market has a very low penetration in India, whereas for mature markets like China and US the penetration of Fashion to the overall industry is as high as 30-35%
- Going forward, we expect fashion to be a pre-eminent category in e-com, and especially strongly purchased by customers in Tier 2+ cities who come online to avail the greater selection in this category
'Better product range', 'heavy discounts' and 'convenience' are key reasons why respondents shop for fashion online
- For respondents in smaller (Tier 2 and beyond) access to branded products and availability of a wider product range are key reasons for shopping online
- 'Convenience of ordering from home' loses importance as we move from Tier 2 cities to Tier 4 cities
primarily driven by addition of new online shoppers
- AOV trend till 2020- To increase due to inflationary effect and increased shopping of premium items while new user addition brings it down
- Transactions trend till 2020: To increase as consumers shop online more for high frequency categories like fashion and FMCG
This document covers the insights of Indian Fashion e-tailing industry. It includes the performance of the various categories across the quarters.
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