Fashion emerges as fastest-growing segment in India’s e-commerce market: RedSeer Consulting
14 November 2024, Mumbai
Fashion emerged as the fastest-growing sector in India’s e-commerce segment whose gross merchandise value grew by 12 per cent to $14 billion in 2024, as per a report by RedSeer Strategy Consultants. Ethnic wear, jewelry, and women’s accessories, particularly unbranded items, gained popularity in Tier II and smaller cities.
Recorded between Sep 15-Oct 31, the e-commerce sector’s growth was primarily fueled by a strong consumer spending in Tier-II and smaller cities, with notable increases in categories like fashion, , beauty, personal care, home furnishings, and groceries.
There was a growing demand for ethnic fashion from consumers in the Tier II cities, highlights the report. The demand spanned both premium and budget-friendly products, indicating a wider acceptance of e-commerce in these regions.
The 2024 festive season highlighted the spending potential of the Tier II + consumers, says Kushal Bhatnagar, Associate Partner, Redseer Strategy Consultants. These consumers deepened their trust in e-commerce, signaling continued growth in the sector over the next few years, he notes.
Despite slower growth in new shopper acquisitions, spending per shopper rose by 5 per cent-6 per cent, suggesting a maturing shopper base of approximately 250 million annual online customers. Driven by attractive discounts, consumers spending in smaller cities rose by 13 per cent in 2024. Prepaid transaction gained more popularity as they enhanced the consumers’ shopping experience in these regions.
Premium and international brands also performed well in tier 1 markets, with direct-to-consumer (D2C) brands seeing significant growth due to increased visibility through digital channels. This robust performance underscores the evolving preferences of Indian consumers, as e-commerce continues to broaden its reach across the country.
