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Fashion is an online sweet spot in India

Retailers who see digital as an integral part of their business will thrive in fashion, while 'big data analytics' clearly has the power to integrate brick and mortar with digital.

Tags: Online Fashion, eCommerce, Fashion & Accessories, Watches, Retail, Digital Retail, Online Shopping

BY Guest author  |  Jul 12, 2016  |  comments ( 0 )  | 
Online Fashion

India’s online fashion market is set for a boom period, thanks to a young demographic and strong economic growth –so it is essential that e-commerce companies and their designers know what is going to appeal to the market.

Increasing internet penetration, increased smartphone usage and growing preference for online shopping will help online fashion players grab a sizeable chunk of India’s organized retail sector that we are predicting to touch $180 billion by the year 2020.The Indian fashion sector is currently dominated by apparel, followed by accessories, footwear and finally lingerie.

According to our analytics research, ethnic clothing is not just the highest apparel catalog item in terms of density, but also has the highest average selling price (Rs 2,055) and discount rate (average: Rs 1,816) – proof that ethnic is very desirable for the Indian consumer.

An overwhelming 69 per cent of the entire national apparel catalog is targeted towards female customers, with men’s wear at 21 per cent and children at 9 per cent.So there are still some real opportunities to be had with these gaps in the marketplace.

Accessories are the big ticket
Women can never have too many handbags or jewels, and this appears to be true when it comes to online shopping. Accessory items come out as having the highest ticket item per unit, on average, at 4,338 rupees (Rs) – and this is also the category that tends to offer the highest discount, too, at Rs 1,702.

Jewelry is the highest selling sector and also covets the highest average selling price per item (Rs 6,552) per item, with, again, the highest average discount (Rs 2,547). Watches come in second, followed by bags/handbags, with average prices of Rs 2,891 and 1,587 respectively.

Shopping patterns key to success
A glimpse into our research and the average Indian consumer online, shopping for fashion, highlights the fact that omni-channel retailing is the way forward. Retailers who see digital as an integral part of their business will thrive in fashion, while 'big data analytics' clearly has the power to integrate brick and mortar with digital.

Harnessing Point Of Sale data, as well as catalog and pricing movement data from across marketplaces, will be the key to making sure the Indian fashion retailer can keep one step ahead of change and carve a successful niche in this fast moving marketplace.

Authored By: Sanjeev Sularia, CEO & Co-Founder, Intelligence Node

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