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Online Fashion Retail Market in India 2016-2020

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.

Key vendors

  • Amazon India
  • Flipkart.com
  • Snapdeal
  • Jabong
  • Yepme
Other prominent vendors
  • 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
  • Yebhi.com
Market driver
  • Increased emphasis on touch-and-feel factor
  • For a full, detailed list, view our report
Market challenge
  • Lack of adequate infrastructure
  • For a full, detailed list, view our report
Market trend
  • Increased penetration in Tier 2 and Tier 3 cities
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

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.

Companies Mentioned

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

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
    • Economic and other market indicators
      • Table GNI per capita for India in comparison with other emerging markets 2000-2014
      • Table Total population of India in comparison to other emerging countries (millions)
      • Table Population in India 2010-2014 (billions)
      • Table Rural and urban population in India 2010 and 2014 (%)
      • Table Urban population in India compared to other emerging nations 2000-2014
      • Table GDP growth (annual %) in India compared with other emerging, frontier, and developed markets 2011-2014
      • Table India: GDP growth 2010-2014 (annual %)
      • Table Internet users per 100 people 2011-2014
      • Table Internet users in India (rural and urban) in 2015
      • Table Smartphone penetration in urban India by 2G and 3G networks 2015
      • Table Preparedness to adopt 3G network by consumer groups
      • Table Reasons for not adopting mobile broadband in India
      • Table Smartphone penetration by areas
      • Table Online buyer penetration in India (forecasted 2016-2020)
      • Table Organized and unorganized retail in India 2015
      • Table Organized and unorganized retail in India 2020
      • Table Penetration of organized retail in India compared to developed and other emerging markets (figures are rounded off)
      • Table Online sales as a percentage of overall retail sales in India 2015
      • Table Share of e-retail across markets 2015 (% of overall retail)
      • Table Share of e-retail across markets 2020 (% of overall retail)
      • Table Online retail by product segments 2015
      • Table Online retail by product segment 2020
  • Market landscape
    • Market overview
      • Table Comparison of internet users (per 100 people) in India with other countries 2014
    • Market size and forecast
      • Table Overall retail market in India 2015-2020 ($ billions)
      • Table Online retail market as a part of overall and organized retail market in India 2015
      • Table B2C e-commerce market in India by services and products
      • Table E-commerce market in India 2015-2020 ($ billions)
      • Table Online retail market in India 2015-2020 ($ billions)
      • Table E-retail market as a percentage of overall e-commerce market in India 2015
      • Table E-retail market as a percentage of overall e-commerce market in India 2020
      • Table Segmentation of online retail market in India 2015
      • Table Online fashion retail market in India 2015-2020 ($ billions)
  • Market segmentation by consumer segment
    • Segmentation of online fashion retail market in India by consumer segment
      • Table Online fashion retail market in India by products
      • Table Online fashion retail market in India by consumer segment 2015 (%)
      • Table Online fashion retail market in India by consumer segment 2020 (%)
  • Market drivers
    • Smartphone and internet penetration
      • Table Share of mobile phone users who use a smartphone in India 2014-2020
    • Availability of different payment options
      • Table Payment options available for online retail
    • Increased emphasis on touch-and-feel factor
    • Favorable demographic factors
      • Table Distribution of internet users in India by age group
    • Better return policies
    • Digital and push marketing
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Lack of adequate infrastructure
    • Major emphasis on discounts
      • Table Shopping during discounts and non-discount days
    • Increased preference for COD
    • Risk of online fraud
    • Competition from brands selling through own websites
    • Threat from unorganized players
      • Table Online retail as a percentage of organized retail in 2015
    • Other factors
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Distribution of consumers between mobile application and websites
    • Mergers and acquisitions
    • Improvement in customer support services
    • Celebrity endorsements
    • Increased penetration in Tier 2 and Tier 3 cities
  • Vendor landscape
    • Competitive landscape
    • Other prominent vendors
  • Key vendor analysis
    • Amazon
    • Flipkart.com
      • Table Product offerings
    • Snapdeal
      • Table Overview of product categories
    • Jabong
      • Table Business overview
    • Yepme
      • Table Product categories by gender and application
  • Appendix
    • List of abbreviation
  • Explore Technavio

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