Feb, 2017     

Fashion e-tailing – 2016 year end performance review


This is an excerpt from the document that covers the performance of Indian Fashion E Tailing Business Models for the year 2016 covering it from business metrics, consumer, seller and delivery performance side.

Fashion E Tailing Market in India

•  A comprehensive performance review of the online fashion retail sector and E Tailing Market
• Assessed through a regularly tracked set of performance indicators (by studying  E Tailing Business Models, etc.)
•  Published quarterly

Seven key dimensions for assessing sector performance

Sl No. Key Dimension Sub-Dimensions Weightage of Key Dimension
1 GMV Performance
  • 1. Y-o-Y GMV performance
  • 2. Q-o-Q GMV performance
  • 3. Share of Horizontal vs Verticals in GMV
High
2 Share of private labels
  • 1.GMV share of private labels
  • 2. Order share of private labels
Low
3 Customer Adoption
  • 1.Growth in monthly active shoppers
  • 2. Growth in order share from Tier 2+ cities
High
4 Customer Satisfaction
  • 1.Satisfaction with price attractiveness, product availability and product quality
  • 2. Satisfaction with ease of navigation, delivery experience and post delivery experience
  • 3. Overall Customer NPS
Medium
5 Seller Satisfaction
  • 1.Satisfaction with online sales growth, cost of selling online and first mile, warehousing experience
  • 2.Satisfaction with logistics experience, seller panel experience and payment processing speeds
  • 3. Overall Seller NPS
Low
6 Delivery Performance
  • 1.Overall O2D time
  • 2.O2D delta between fastest and slowest e-tailers
Medium
7 Unit Economics 1. Contribution Margin (as % NMV) High

Fashion is currently the of the biggest categories with a 22% share to the overall GMV

1.The Indian e-tailing industry has grown by 20% from CY 2015 to reach USD 14.5 billion in CY 2016

2. Fashion is one of the biggest category in terms of GMV (derived by studying Amazon Gmv, Flipkart Gmv etc.) with ~22% contribution

3. This makes the online fashion retail market worth ~USD 3.2 billion 

Overall fashion market remained mostly same throughout the year compared to the overall market

Q1 CY16

  • DIPP regulations
    released in March lead
    to a growth slowdown
  • Players scramble to adapt to new discounting and seller management regulations

Q2 CY16

  • A quiet quarter for the
    sector as players work
    on sales and seller
    strategy
  • June sees the launch of
    the first sales events in
    the quarter

Q3 CY16

  • Highly promoted sales in
    July/Aug organised by
    verticals and horizontals
    drive growth in GMV
  • Top verticals sees 50%-
    100% growth in sales in
    July due to sales

Q4 CY16

  • Highest ever GMV of USD
    26 bn in Oct
  • 20% GMV fall in 3 weeks of
    Nov after demonetization
  • End of season sales starts in
    Dec for most e-tailers

Download the complete document below.

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