Indian online fashion retail market likely to grow @ 19% CAGR
15 March 2023, Mumbai
The online fashion retail market in India is projected to grow by $22.97 billion from 2021 to 2026 at a CAGR of 18.83 per cent, according to Technavio's latest market research report.
One of the key factors driving the market's growth is the rise of social commerce, facilitated by major players such as Facebook, Instagram, and YouTube, among others. Social commerce provides a variety of choices and shared user experiences, ultimately influencing consumer decision-making. The growth of social commerce also increases e-commerce orders and boosts retail and e-commerce brands' online presence and customer trust.
The apparel segment is expected to experience significant market share growth during the forecast period due to high demand for fashionable and comfortable apparel, as well as retailers' targeted marketing efforts to different consumer segments.
Despite the positive growth projection, the online fashion retail market in India also faces challenges. The difficulty in retaining online customer loyalty is a significant challenge, as e-commerce vendors struggle to engage customers without the in-person assistance provided in traditional retail stores. And providing engaging online experiences remain significant challenges for e-commerce vendors
