The domestic online fashion business is slated to become a $35-billion entity by 2020, marking four-fold growth in online apparel sales in the coming years, according to Google.
“By 2020, India is expected to generate $100 billion online retail revenue, of which $35 billion will be through fashion e-commerce. Online apparel sales are set to grow four times,” said Nitin Bawankule, director for e-commerce and online, Google.
According to Google research, every third shopping search on Google is related to fashion, with fashion-related queries growing 66% year-on-year. Bawankule said India at present has an online population of 40 million and the number is poised to surge to 100 million by 2016 and 250 million by 2020. By 2018, India is set to have 500 million internet users whereas 280 million smart-phone users could be the key drivers for e-commerce portals.
Quoting Forester Consumer Research 2014, Bawankule said the new users will fuel growth in online sales in the next 12 months, which will drive 26-31% increase in apparels, footwear, babycare and skincare products.
According to an earlier report by venture capital firm Accel Partners, an investor in Flipkart, the domestic online fashion space was valued at $559 million in 2013, and is expected to become a $2.8 billion entity by 2016.