– By Akhil Duggar Jain
In recent years, the fashion industry in India has witnessed a seismic shift with the advent of e-commerce. The traditional brick-and-mortar model has been disrupted, making way for a digital revolution that has transformed the way people shop for fashion. With increased internet penetration and smartphone usage, e-commerce has emerged as a game-changer, providing convenience, accessibility, and a plethora of choices to consumers.
Exponential growth in online fashion sales
The rise of e-commerce has revolutionised the fashion industry by opening up new avenues for growth. According to a report by Statista, the online fashion market in India is projected to reach a value of $14.4 billion by 2023, growing at a compound annual growth rate (CAGR) of 18.5 per cent from 2019 to 2023. This staggering growth can be attributed to several factors, including the convenience of online shopping, attractive discounts, and a wide range of choices.
Increased access and reach
E-commerce has eliminated geographical barriers, allowing consumers from even the most remote corners of India to access the latest fashion trends. According to the Internet and Mobile Association of India (IAMAI), the number of internet users in India reached 624 million by the end of 2020. This vast user base has created a massive market for fashion e-commerce platforms, enabling them to reach a broader audience and cater to the diverse fashion preferences of Indian consumers.
Changing consumer behaviour
The convenience and flexibility offered by e-commerce have drastically altered consumer behaviour in the fashion industry. Today, shoppers can browse through a wide range of products, compare prices, read reviews, and make purchases at any time of the day, all from the comfort of their homes. This shift in consumer behaviour is evident in the data, as online fashion sales in India grew by 51 per cent in 2020, as reported by Redseer.
Rise of fashion start-ups
E-commerce has provided a platform for numerous fashion start-ups to emerge and thrive in the Indian market. These start-ups have capitalised on the digital ecosystem, offering unique designs, personalised experiences, and affordable fashion options to consumers. Their ability to quickly adapt to changing trends and preferences has disrupted the traditional fashion landscape, challenging established players and fostering healthy competition.
Integration of technology
E-commerce has leveraged technology to enhance the overall fashion shopping experience. Augmented reality (AR) and virtual reality (VR) technologies have allowed consumers to virtually try on clothes and accessories, reducing the need for physical trials. Additionally, artificial intelligence (AI) algorithms have been employed to offer personalised recommendations based on individual preferences and past purchases, thereby enhancing customer satisfaction and loyalty.
Job creation and economic growth
The growth of e-commerce in the fashion industry has not only impacted consumers but also contributed to job creation and economic growth in India. A study by KPMG estimates that the e-commerce industry in India will create more than a million jobs by 2022. This includes employment opportunities in logistics, warehousing, customer support, and digital marketing, among others. Furthermore, the growth of the e-commerce sector has had a positive effect on the overall economy, leading to increased investments and revenue generation.
Connected commerce
With its integration of social and digital platforms, has had a significant impact on the Indian fashion industry. Social media platforms like Instagram and Facebook have become powerful tools for fashion brands and designers to showcase their collections, engage with customers, and drive sales. By leveraging these platforms, fashion brands have been able to reach a wider audience, both domestically and internationally. Connected commerce has facilitated direct-to-consumer sales, enabling customers to shop seamlessly through social media channels. This shift has democratised the fashion industry in India, allowing emerging designers and local brands to gain visibility and compete on a global scale.
Endless aisle
As a part of omni-channel retailing, has revolutionised the way Indian fashion retailers operate. Traditionally, limited physical store space posed challenges for retailers to showcase their entire inventory. However, with endless aisle, retailers in India can bridge the gap between online and offline shopping experiences. Customers now have access to an extensive range of products, even if they are not physically available in-store. This has expanded the options available to Indian consumers, providing them with more choices and reducing the chances of out-of-stock situations. Endless aisle has also encouraged retailers to optimise their supply chains and inventory management systems to ensure a seamless shopping experience for customers.
The concept of the metaverse has started to make waves in the Indian fashion industry. As virtual reality and immersive experiences gain popularity, Indian fashion brands are exploring opportunities to engage customers in the virtual realm. The metaverse allows Indian consumers to virtually try on clothes, experiment with different styles, and experience fashion shows from the comfort of their homes. It has opened up new avenues for Indian designers to showcase their creativity and craftsmanship, transcending physical limitations. The metaverse has the potential to disrupt the traditional fashion industry by offering unique and interactive experiences, which can help Indian brands build stronger connections with their target audience and create memorable brand experiences.
E-commerce has revolutionised the Indian fashion industry, expanding market reach and transforming consumer behaviour. With innovation and convenience at its core, e-commerce has redefined the shopping experience. Fashion brands must embrace digital transformation to tap into a vast consumer base and stay competitive. However, challenges arise, including intense competition, counterfeit products, and fraudulent practices. Brands must invest in online presence, seamless user experiences, and collaboration with e-commerce platforms to protect trust. Overall, e-commerce’s transformative impact has created opportunities for job creation, economic growth, and investments, shaping the future of the Indian fashion industry.
(Akhil Duggar Jain is the Executive Director at Jain Amar Clothing Pvt Ltd, that houses the brand, Madame.)
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