Amazon India study reveals premiumization trend, state-specific sales dynamics
In the centre of India's ever growing e-commerce landscape, Amazon India has observed a silent transformative trend: the rise of premiumization in Indian fashion and apparel retail. An in-depth look at their own sales data reveals evolving consumer preferences and regional nuances. The study highlights the rise of premium brands and growing appetite for high-quality fashion across states. “The premiumization trend in India is undeniable. Consumers are increasingly seeking high-quality, branded products, and are willing to pay a premium for them," says Amit Agarwal, SVP and Country Head, Amazon India.
Growing demand for premium fashion
Amazon India's data reveals a growing appetite for premium fashion and apparel brands among Indian consumers. The platform's premium segment has witnessed a significant sales increase, indicating a shift in consumer preferences towards higher-priced, quality-focused brands. And the pattern of sale changes across states. While major metros like Delhi, Mumbai, and Bangalore remain big contributors to overall fashion and apparel sales accounting for over 60 per cent of fashion and apparel sales on Amazon India.
Tier-II, III cities are showing rapid growth almost contributing nearly 40 per cent to overall fashion sales, driven by increased internet penetration and rising disposable incomes. Ethnic wear remains a popular choice across India, accounting for over 40 per cent of overall fashion and apparel sales on Amazon India. Manish Tiwary, Vice President, Amazon India points out, "We are witnessing a remarkable shift in the fashion landscape in India, with a growing preference for premium brands and a surge in demand from diverse states across the country. Amazon India is committed to providing a platform for both established and emerging brands to reach a wide customer base."
States like Maharashtra, Karnataka, and Tamil Nadu have emerged as fashion-forward states, displaying a higher inclination towards premium brands and trendy styles. These states also exhibit a preference for ethnic wear, reflecting the strong cultural influences in these regions. What’s more, over 70 per cent of fashion purchases on Amazon India are made through mobile devices, reflecting the country's digital-savvy consumer base.
Growth potential in smaller cities
There study points out, there has been a rise in homegrown luxury. Indian luxury brands like Sabyasachi and Anita Dongre have witnessed exponential growth on Amazon India, catering to the increasing demand for premium ethnic wear. At the same time, luxury brands like Louis Vuitton, Gucci, and Prada have witnessed significant success on Amazon India, with a growing number of Indian consumers opting for these high-end brands.
Cities like Jaipur and Lucknow are witnessing a surge in fashion consciousness, with consumers actively seeking out the latest trends and premium brands. And fashion influencers are playing a pivotal role in driving sales, particularly among younger consumers, who look to them for style inspiration and recommendations.
Amazon India's findings highlight the evolving fashion and apparel landscape in India. The growing appetite for premium brands and the rapid growth of Tier-II, III cities present significant opportunities for both domestic and international brands. As India's e-commerce market continues to grow, fashion and apparel brands need to adapt their strategies to cater to the changing consumer preferences and regional dynamics.
