Indian fashion industry is undergoing a digital makeover, with e-commerce emerging as the new runway. This dynamic market is projected to reach a staggering $18.76 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 34 per cent. Many factors have worked in tandem that has led to this sartorial shift.
Many studies have indicated the growth story of Indian fashion e-commerce market. According to Coherent Market Insights, the market size stood at $14 billion in 2023. Similarly, a report by GlobeNewswire highlighted CAGR of 34 per cent. This explosive growth can be attributed to the increasing internet penetration rate in India. With affordable smartphones and high-speed internet becoming commonplace, online fashion shopping is gaining immense traction.
What’s fuelling the fashion frenzy
Growing Internet and smartphone penetration is one major reason. India's internet user base has reached a staggering 854 million users in 2023. This, coupled with the widespread adoption of affordable smartphones, has created a digital-savvy population eager to explore online shopping avenues. Moreover, India boasts a young population comfortable with online transactions, making them prime targets for e-commerce fashion platforms.
India's growing economy has led to a rise in disposable incomes, particularly among the young and middle-class demographics. This increased spending power fuels the demand for a wider variety of fashion products. Also, online shopping offers unmatched convenience, allowing consumers to browse and purchase from the comfort of their homes. E-commerce platforms provide access to a vast selection of brands and products, often exceeding the physical limitations of traditional stores. And what has worked really well is that e-commerce platforms frequently offer discounts, deals, and loyalty programs, making fashion products more accessible and enticing for budget-conscious consumers.
Challenges on the runway
Despite the optimistic outlook, the Indian fashion e-commerce market faces certain challenges.
Logistics and delivery concerns: Ensuring efficient and cost-effective delivery across India's vast and diverse geography can be a hurdle. Additionally, concerns around product returns and exchanges can deter some consumers.
Cash on Delivery (COD) reliance: A significant portion of Indian consumers still prefer COD options, which can lead to higher operational costs and order cancellations.
Counterfeit products: The presence of counterfeit products online can erode consumer trust and negatively impact legitimate brands.
Limited infrastructure: Uneven internet connectivity, particularly in Tier II, III cities, can hinder the full potential of online fashion shopping.
Changing buying behavior
The Indian fashion e-commerce consumer is evolving rapidly. Here's a data-driven snapshot…
Millennials and Gen Z dominate online fashion shopping, accounting for a significant portion of the customer base. While women traditionally make up a larger share of online fashion shoppers, men's fashion e-commerce is witnessing significant growth. Tier-II and -III cities are experiencing a boom in online fashion shopping, indicating expanding reach beyond metros. While a segment of consumers seeks premium and luxury brands online, a significant portion remains value-conscious, seeking deals and discounts. Social media platforms significantly influence online fashion buying behavior, with trends and recommendations driving purchases.
Meanwhile, the online fashion landscape is witnessing exciting trends:
Rise of domestic brands: Indian fashion e-commerce platforms are showcasing a growing number of homegrown brands, catering to local tastes and preferences.
Sustainable fashion: Consumers are becoming increasingly environmentally conscious, leading to a rise in demand for sustainable and ethical fashion options online.
Personalized shopping: E-commerce platforms are leveraging data analytics and AI to offer personalized recommendations and improve user experience.
Live streaming and video commerce: Interactive formats like live streaming fashion shows and video reviews are gaining popularity, influencing buying decisions.
Omnichannel retailing: The lines between online and offline retail are blurring. Brands are integrating online and offline experiences to offer a seamless shopping journey.
The Indian fashion e-commerce market caters to various segments. The luxury is still nascent but it is witnessing growth, driven by increased brand presence and secure payment gateways. The premium fashion segment holds a significant market share, with established brands and designer labels attracting a loyal customer base. However, it’s the mass market segment is the largest, driven by affordability and a wider variety of products. Value fashion brands and private labels offered by e-commerce platforms are performing exceptionally well. Data suggests that the premium segment is expected to witness the fastest growth rate in the coming years. This can be attributed to the rising disposable incomes of upwardly mobile consumers.

Digital wholesale platform Joor has unveiled its new initiative titled, ‘Sustainability in Focus.’ Dedicated to showcasing brands worldwide committed to sustainable practices, this show aims amplifies the visibility of eco-conscious collections and assists global retailers in sourcing sustainable products for their stores.

Being held from Apr 02-June 02, 2024, this event features 136 sustainable brands including Ganni, Johnstons of Elgin, Marine Serre, and Stella McCartney, etc.

Amanda McCormick Bacal, Senior Vice President-Marketing, Joor emphasises the importance of supporting sustainability efforts across the fashion industry. With its extensive network of global fashion buyers, the platform serves as a vital link between designers and retailers, providing visibility and fostering connections, Bacal says.

Launched in 2020, Joor Passport has streamlined the global trade show and fashion week experience, offering a centralised platform for buyers. This tool has proven indispensable, especially amid restricted travel conditions. As physical events gradually resume post-pandemic, Joor Passport plans to expand its reach, catering to both virtual and in-person attendees.

In 2021, Joor extended its presence to Japan, hosting a virtual fashion event featuring over 30 Japanese brands. This expansion facilitates connections between brands and international buyers, enhancing business opportunities.

Furthermore, in November 2023, Joor partnered with ISPO Munich, a sports trade fair, to foster growth in sports, outdoor, and lifestyle product domains, highlighting its commitment to diverse sectors beyond traditional fashion.

European shoemaker Astormueller has launched its new sneakers range ‘Nubeat’ on the India’s premier e-commerce platform Myntra.

Featuring eight distinct sneakers, the collection has been created by Johanna Müller, a music enthusiast, and the fourth-generation scion of Europe's Müller family. It’s a fusion of music, style, and community and will inspire wearers to step into their own rhythm and embrace the joy of self-expression, says Muller

Sandip Baksi, Chief Operating Officer, Astormueller adds, inspired by the brand’s passion for music and fashion, the collection reflects is a reflection of its creativity and endless possibilities. It will exclusively available for purchase on Myntra and Nubeat’s online store. 

Esteemed Scottish men’s fashion brand renowned for its exquisite suits, Reid & Taylor plans to launch seven stores across Mumbai within a month. The brand recently launched its latest store in Borivali offering its distinguished range of formal and casual wear to the city’s fashion enthusiasts.

Reid & Taylor was established by the Scottish entrepreneur Alexander Reid in the 1830s. The brand flourished with the support of Joseph Taylor, eventually earning global acclaim for its luxurious worsted suiting. Over the years, it has garnered a devoted customer following, with celebrities like Pierce Brosnan endorsing its impeccable craftsmanship.

Having entered the Indian market in 1998, Reid & Taylor continues to captivate discerning customers with its timeless designs and superior quality. The brand has a state-of-the-art mill in Mysore, Karnataka that sets new standards of excellence in the world of men’s fashion by seamlessly blending Scottish heritage with Indian craftsmanship.

A prominent contemporary Indian fashion brand, Shree has launched its latest desert inspired collection across the brand stores in the United Arab Emirates.

Titled, the ‘Afifa Elegant Abaya Collection’, the range is inspired by the serene landscapes of the desert. Its theme, ‘Elegant Oasis,’ embodies a sense of tranquility and grace. The garments feature soft, flowing fabrics in calming hues such as sand, sage green, and dusty blue. These are further embellished by intricate designs of the desert flora and fauna, including delicate embroidery and shimmering beadwork. These details aim to capture the ethereal beauty of desert life, adding depth and allure to each piece.

A standout feature of the Afifa collection is the use of premium Korean Nida fabric, renowned for its exceptional quality and luxurious texture. This fabric not only ensures unparalleled comfort but also adds a touch of opulence to every garment.

Sheetal Kapoor, Founder, Shree, says; the collection blends elegance, cultural respect, and contemporary style, empowering customers to embrace their unique identities with confidence. It fuses traditional elegance with modern sensibilities to cater to the preferences of the modern woman.

Alongside the Abaya collection, Shree is showcasing a range of printed tunics and kurtas this season, providing customers with a diverse selection of ethnic wear options.

Yousta, the youth fashion format of Reliance Retail has expanded its store network by opening its first high street store in Mumbai.

Located in New Panvel, the store serves as a vibrant hub that celebrates individuality and brings fashion fantasies to life through an enticing blend of style and affordability. All products at the store are priced below Rs. 999, with a majority priced below Rs. 499. Yousta recently opened a store at Phoenix Marketcity, Viman Nagar in Pune; it’s second in the city.

Reliance Retail announced the launch of its youth-focused fashion brand Yousta in August 2023 with the opening of its first store in Hyderabad’s Sarath City Mall. Today, it has over 19 stores in 15 states across the count.

Jutti, footwear, and accessories brand Fizzy Goblet plans to launch its latest collection at a pop-up shopping event in Lucknow. To debut on April 12, the event will help Fizzy Goblet connect with shoppers in the North Indian city.

The brand recently also launched its Spring/Summer collection of brightly colored mules. Designed to be worn with both ethnic and western wear, the strappy males have woven style fronts in a mix of pastel and vibrant hues.

Launched by Laksheeta Govil in Mumbai, Fizzy Goblet debuted in 2014 with a collection of traditional style, embellished juttis. Since then, the brand has expanded its product range to include other footwear and accessories in a fusion style designs. 

Fizzy Goblet retails from its direct to customer e-commerce store and 10 flagship stores in Mumbai, Delhi, Noida, Pune, Bengaluru, and Hyderabad. Besides collaborating with labels including Rahul Mishra, Puma, Tribe Amrapali, and Payal Singhal, Fizzy Goblet has also named Kareena Kapoor Khan as its new brand ambassador.

The renowned homegrown fashion brand of India Biba launched two new collections at its flagship store on the Loudon Street in Kolkata, West Bengal.

The first of these collections, titled, ‘Har Nazar Mein Kuch Naya,’ offers a wide array of choices ranging from festive ensembles to everyday Indian wear and trendy workwear. Complementing these outfits are the newly launched accessories including jewelry and bags, enhancing the overall style quotient.

Biba also launched an exclusive collection for Poila Baisakh, a festival celebrated with great fervor in Bengal. This collection was launched by Tollywood celebrity Ritabhari Chakraborty, known for her illustrious career in Indian television and film.

Epitomising the essence of Biba, the Loudon Street store in Kolkata caters to the dynamic spirit of the ‘BIBA girls; with its diverse range of fashion offerings. The brand has set up 17 stores across Kolkata with an aim to democratise Indian fashion, says Siddharath Bindra, Managing Director.

Through these meticulously curated stores, Biba continues to redefine Indian fashion, prioritising customer satisfaction while offering a diverse range of fashion merchandise.