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.