The vertical online fashion players have better unit economics compared to the same categories for the horizontals
Published on: Oct 2018
The horizontals are still running good discount schemes for customer acquisition in the fashion category thus resulting in negative contribution margins. The verticals have higher focus on private labels which attract higher margins which is driving the positive contribution margins in their favour.
Both horizontals and verticals witnessed an increase in consumer satisfaction from OND-17 to JFM-18
Published on: Jun 2018
The online fashion market witnessed an increase in consumer satisfaction with both horizontal and verticals players in JFM-18. Multiple sale events like Republic day sale and end of reason sale led to the increase in consumer satisfaction as the offer and discounts provided attracted the consumers. And since the volume of these sale events was less than the festive sales the fashion e-tailers were able to have a better control on delivery experience.
The market is largely dominated by horizontals and large verticals
Published on: Jun 2018
The online fashion market is largely dominated by horizontals and large verticals but the small verticals are growing at a fast pace. The small verticals have been able to create a niche by offering good assortment and pushing private labels. Going forward we expect the industry to remain fragmented as various players have been able to provide good consumer experience.
Brand and Price are the top consumer decision making criteria while buying online fashion
Published on: May 2018
The online fashion consumers give highest importance to brand while buying. This is largely because the trust required while buying fashion online is the high and consumer generally go for the brands they trust. Price is the second most important criteria. The online fashion verticals which are pushing their private labels are thus trying to become a brand by focusing on providing a good quality, reasonably priced product to attract the consumers.
Online fashion has stronger penetration in Metros, however contribution from smaller cities is also significant
Published on: Jan 2018
All the leading horizontal players receive more than 25% of their sales from tier-2+ cities leading to higher share of online fashion from tier-2+ as compared to overall online retail.
Online Fashion – Tier wise split, USD Billion
Verticals have been narrowing the gap with horizontals in online fashion.
Published on: Jan 2018
While the Flipkart’s and Amazons of the world continue to a have an edge in the online fashion market during festive sale quarters, the market split nearly 50-50 for the other quarters as verticals are increasingly asserting themselves.Growing number of fashion-conscious consumers are attracted to verticals by their superior consumer experience and their collection of high quality and affordable private labels.
