About the Online Fashion Retail Market in India
Although the brick-and-mortar segment dominates the market at present, the online retail segment is expected to grow at a much faster rate during the forecast period. Food and grocery items constitute the most dominant product category in the brick-and-mortar segment. The inability to touch and feel a product is partly responsible for the low share of online retail. The increase in penetration of mobile phones, combined with the introduction of virtual trial rooms by online vendors, will positively affect the growth of the market.
Technavio’s analysts forecast the online fashion retail market in India to grow at a CAGR of 63.45% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the online fashion retail market in India for 2016-2020. To calculate the market size, the report considers the revenue generated from the retail sales of products offered through the fashion segments that include apparels and footwear, bags, belts, wallets, watches, and accessories. The market size includes sales of fashion goods through the online channel of pure-play e-retailers as well as sales of fashion products through own websites of brick-and-mortar retailers. Technavio's report, Online Fashion Retail Market in India 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Online Fashion Retail Market in India 2016-2020
Technavio recognizes the following companies as the key players in the online fashion retail market in India: Amazon India, Flipkart.com, Snapdeal, Jabong, and Yepme.
Other Prominent Vendors in the market are: 20Dresses.com, 99labels, Alibaba, American Swan, Fabindia, FashionandYou, Fetise, HomeShop18, KOOVS, Limeroad, Naaptol, Shopclues.com, Shoppers Stop, Shopping.indiatimes, Shopping.rediff, StalkBuyLove.com, Styletag, Stylista, and Yebhi.com.
Commenting on the report, an analyst from Technavio’s team said: “A trend which is boosting market growth is the increased penetration of online shopping in Tier 2 and Tier 3 cities. Online fashion retail in India is expected to register an increased participation from Tier 2 and Tier 3 cities. This is because sales to consumers outside the metropolitan areas account for half of the total sales from leading online retailers such as Jabong, Myntra, and Indiatimes. Shopping for fashion products is increasing in these cities owing to the increase in internet penetration, exposure, and affordability factors. In addition to this, a limited penetration of branded brick-and-mortar stores among non-urban consumers is increasing the demand for online retailing. Companies like Amazon and Flipkart are in talks with the government of India to improve the postal service with the aim of delivering products within 24 hours in any part of the country.”
According to the report, a key growth driver is the increased emphasis on the touch-and-feel factor. Indian customers are more comfortable shopping physically through brick-and-mortar stores and rely more on the touch-and-feel factor for making a purchase decision. The majority of the population is still reluctant to purchase merchandise online without physically examining it first. To overcome this challenge and to influence consumers to buy online, companies are coming up with new strategies. For instance, Flipkart introduced experience zones across cities in 2015, whereby customers can touch and feel a product after making an online purchase. Myntra has seen a sharp hike in the number of visitors on its portal since the launch of its Try and Buy scheme in 2012, which allows customers to have products delivered to their addresses, try them on, and then finalize the purchase.
Further, the report states that one challenge that could restrict market growth is the lack of adequate infrastructure. Online fashion retailers in India often face issues with poor infrastructure and supply chain bottlenecks, which negatively affect product delivery and customer satisfaction.
Commenting on the report, an analyst from Technavio’s team said: “A key trend that is expected to positively impact the market is the growing emphasis on technology and smart appliances. Wireless technologies like ZigBee and Wi-Fi are making interoperability between devices possible. Near Field Communication (NFC) is being extensively used in smart washing machines to establish radio communication with smartphones and bring them at proximity. For instance, in 2014, LG Electronics introduced a smart washing machine using NFC that allows users to pair up their smartphones to download additional programs. The smart diagnosis feature of this machine can be used to detect functional issues in the machine. This product also has a smart diagnosis feature that can help to instantly troubleshoot problems and answer users' queries swiftly conveniently
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