E-Commerce’s role in fuelling the expansion of the Indian fashion industry
The democratisation of the fashion industry in India is evident in the increase in direct-to-consumer sales facilitated by connected commerce, says Amar Nagaram.
E-commerce has proven to be a powerful force driving the growth of the Indian fashion industry into new areas of accessibility and exploration. With their wide reach and seamless integration of cutting-edge technology, online platforms are fundamentally changing the way fashion is consumed and experienced across the country.
Accessibility is at the core of e-commerce’s impact on the Indian fashion landscape. Gone are the restrictions of geographical boundaries or the constraints of physical shops as E-Tail platforms bridge the gap between various styles and preferences, democratising fashion and making it accessible to all. With just a few clicks, consumers from all parts of the country can access a wide range of products. These platforms ensure that fashion is no longer restricted to certain regions or demographics by offering both the latest urban trends and timeless traditional wear, thereby catering to diverse styles and preferences.
In addition, e-commerce allows consumers an unrivalled level of discovery. Through personalised recommendations, curated collections and innovative browsing features, individuals can discover and experiment with different trends and styles. The digital world serves as a vast playground where fashion enthusiasts can immerse themselves in a world of endless possibilities, from niche designers to global brands, fostering a culture of creativity and self-expression.
The exponential growth of online fashion sales has changed the landscape of the fashion industry, ushering in a new era of convenience, accessibility and unprecedented sales potential. According to a report by Statista, the online fashion market in India is expected to grow to a value of $ 14.4 billion by 2023, reflecting a remarkable compound annual growth rate (CAGR) of 18.5 per cent from 2019 to 2023.
This meteoric rise in online fashion sales can be attributed to a combination of several factors, all of which are contributing to the rapid growth of the industry. Firstly, the convenience offered by e-commerce platforms has fundamentally changed the way consumers interact with fashion. With just a few clicks, customers can browse a huge selection of garments, compare prices and shop from the comfort of their own home or while travelling. This convenience factor has proven to be a key driver in the rise of online fashion sales, especially in a fast-paced society where time is of the essence.
In addition, attractive discounts and special offers further incentivise consumers to shop their fashion online. E-commerce platforms often offer exclusive deals, seasonal sales and limited-time discounts, enticing customers with the promise of significant savings. These promotional strategies not only attract new customers, but also encourage brand loyalty, which encourages repeat purchases and results in sustained growth in online fashion sales.
Additionally, the extensive range of options offered on e-commerce platforms has revolutionised the shopping experience for consumers. From niche designers to well-established brands, online fashion retailers provide a diverse selection of clothing, accessories, and footwear to accommodate a wide array of tastes and preferences. This exponential growth in online fashion sales signifies a significant shift in the fashion industry, driven by the convergence of convenience, discounts, variety, and secure payment solutions facilitated by E-Tail platforms. As E-Tail continues to evolve and innovate, it holds the potential to unlock even greater sales opportunities, transforming the fashion consumption landscape in India and beyond.
To summarise, the exponential growth of online fashion sales represents a seismic shift in the fashion industry, driven by the convergence of convenience, discounts, variety and secure payment solutions. As e-commerce continues to evolve and innovate, it promises to unlock even greater sales potential and transform the way fashion is consumed and experienced in India and beyond.
The integration of technology into e-commerce has revolutionised the shopping experience in the fashion industry, ushering in a new era of innovation, convenience and personalisation. One of the most notable advances in this regard is the use of augmented reality (AR) and virtual reality (VR) technologies, which have transformed the way consumers, interact with fashion products.
Augmented reality and virtual reality technologies have seamlessly merged the physical and digital worlds, allowing consumers to virtually try on clothes and accessories from the comfort of their own homes. Gone are the days of tedious and often inaccurate fitting rooms. Instead, customers can now use their smartphones or VR headsets to visualise how the garments will look and fit on their bodies. This immersive experience not only improves the overall shopping experience, but also minimises the risk of returns and exchanges, leading to greater customer satisfaction and more confidence in online purchases.
In addition, artificial intelligence (AI) algorithms have played a crucial role in increasing the level of personalisation of e-commerce platforms. By analysing large amounts of data, including individual preferences, browsing history and previous purchases, AI-powered recommendation engines can create tailored suggestions for each user. Whether it’s suggestions for complementary items to complete an outfit or advice on the latest trends in customers’ favourite style categories, these personalised recommendations increase customer satisfaction and loyalty and encourage greater engagement with the platform.
Furthermore, the integration of technology goes beyond the shopping experience itself and encompasses various aspects of the e-commerce ecosystem. From optimised logistics and inventory management to efficient customer service solutions, technology enables online retailers to operate seamlessly and efficiently, providing customers with a seamless end-to-end experience.
In essence, the evolution and maturation of these technologies promises to further enhance the online fashion experience and continue to drive growth and innovation in the industry.
The growth of e-commerce in the fashion industry has created a ripple effect that hasn’t only changed consumer behaviour but also boosted job creation and economic prosperity in India. A study conducted by KPMG highlights the significant role that the e-commerce sector plays in job creation, with forecasts predicting the creation of over one million jobs by 2022. This increase in employment spans across various sectors, including logistics, warehousing, customer support and digital marketing, offering a wide range of career opportunities for people across the country.
The proliferation of e-commerce has led to an increasing demand for skilled professionals to manage various aspects of online retail, from ensuring smooth order fulfilment to creating compelling digital marketing campaigns. In particular, the expansion of logistics and warehousing infrastructure has proven to be a key driver of job creation, offering employment opportunities in areas such as warehouse management, inventory control and last mile delivery services. In addition, the increase in customer care roles emphasises the importance of providing exceptional service to online shoppers, further fuelling job growth in this sector.
Beyond job creation, the growth of the e-commerce sector has had a positive impact on the overall Indian economy, leading to increased investment and revenue. As online retail continues to gain momentum, both domestic and international investors are increasingly investing in e-commerce businesses, recognising the huge potential for growth and profitability. This influx of investment capital is not only fuelling the expansion of existing e-commerce platforms, but also paving the way for new players to emerge in the market, promoting healthy competition and innovation.
Moreover, the concept of connected commerce, which is characterised by the seamless integration of social and digital platforms, has become a game changer in the Indian fashion industry. Social media platforms such as Instagram and Facebook have emerged as powerful marketing tools for fashion brands and designers, allowing them to showcase their collections, engage with customers and drive sales in real time. By utilising the reach and influence of social media, fashion brands can connect with a global audience and overcome geographical boundaries and cultural barriers.
The democratisation of the fashion industry in India is evident in the increase in direct-to-consumer sales facilitated by connected commerce. Emerging designers and local brands now have unprecedented access to consumers around the world by utilising social media channels to showcase their unique offerings and create a distinctive brand identity. This shift not only promotes inclusivity and diversity within the fashion ecosystem, but also gives emerging designers and entrepreneurs the opportunity to find their niche in the competitive market landscape.
About the author:
Amar Nagaram is the Co-Founder and CEO of Virgio.Pro-Planet Fashion Brand, where style meets sustainability in a seamless fusion of fashion-forward designs and eco-conscious practices. Virgio stands out as the beacon of GOOD fashion, leading the industry with their commitment to circular fashion practices. They believe that looking fabulous shouldn’t come at the cost of our planet’s well-being. That’s why every garment crafted by Virgio is made with premium natural fabrics sourced responsibly.
