Monday, July 6, 2020

Indian Clothing Market Industry – Report 2020

The Indian clothing market is expected to be worth $53.7 billion in 2020, making it the sixth largest globally, according to the fourth annual state of fashion report by The Business of Fashion and McKinsey & Company.

India, which has attracted global brands like Zara, H&M and Marks & Spencer lately, saw the entry of Japanese retailer Uniqlo. Recently, the government relaxed local sourcing norms in single-brand retail, providing further impetus to the industry.

The industry has also evolved quickly in past years, by transforming traditional clothing to modern design that represent a fusion of ethnic wear with western wear to associate with young population. Further, drivers such as economic growth, ease of payment, and other seamless experience have led to significant growth in the women’s ethnic wear market.

India currently has one of the world’s largest young population. Currently around half of the total population is below 25 years of age. This age group represents one of the biggest consumer group of textiles and apparel and is expected to drive the spending over the next five years.


Sustainability has been a major concern for many consumers and manufacturers globally and is an area players in womenswear are keen to explore. Apart from manufacturers, the government is also looking to promote this cause.

The Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest e-commerce market in the world by 2034. The e-commerce market is expected to reach Rs 13,97,800 crore (US$ 200 billion) by 2027 from Rs 2,69,076.5 crore (US$ 38.5 billion) in 2017. India's e-commerce market has the potential to grow more than four folds to Rs 10,48,350 crore (US$ 150 billion) by 2022 supported by rising incomes and surge in internet users. Online shoppers in India are expected to reach 120 million in 2018 and eventually 220 million by 2025. Online retailers now deliver to 15,000-20,000 pin codes out of nearly 100,000 pin codes in the country.

E-Commerce and consumer internet companies in India received more than Rs 48,923 crore (US$ 7 billion) in private equity and venture capital in 2018. Online retail sales in India are expected to grow by 31 per cent to touch Rs 2,28,540.3 crore (US$ 32.70 billion) in 2018, led by Flipkart, Amazon India and Paytm Mall. Online retail is expected to contribute 2.9 per cent of retail market in 2018.

The advent of e-commerce has changed the way business is done in India.

By now it is pretty evident that e-commerce is the future of retail, taking giant steps in terms of technology with each year.

At present, India is the world’s fifth-largest global destination in retail space. The Indian retail market is estimated to be reaching around Rs 1,08,58,000 crore i.e  US $1,672 billion by 2027.


E-Commerce Growth

Digital innovation, rising globalization, and changes in consumer spending habits have catapulted the fashion industry into the midst of seismic shifts.

Let’s look at the statistics, trends & strategies adopted by the e-commerce fashion industry in 2019!


What are some of the factors to drive fashion e-commerce in India?

India has a lot of factors that are driving it to be one of the front runners in the fashion eCommerce segment.


Growth of the digital industry:

India is in the midst of a digital revolution. The number of Internet users is likely to cross 650 million by 2020 and it is expected that half of the Indian population will be online in the next 3 years.


E-commerce players that earlier largely focused their businesses as online marketplaces are now seeing a strategic shift as they continue to focus on launching their own private label products at affordable prices to tap into consumer demand. For example, VMAXO, Flipkart, MLAXI launched its women’s Western wear that targets women in the 22-25 year old age bracket in tier two cities.

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Wednesday, October 30, 2019

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