Indian Online Fashion Industry Grows By 51% In FY-21, According To Report

Adapting to the new normal and setting benchmarks in the e-commerce space amid the coronavirus pandemic, the online Fashion industry in India has experienced a stunning overall 51 percent growth in the financial year of 2021 (FY-21) with an impressive 66 percent growth on various brand websites, according to report.

The new report shown on Thursday infers Tier 3 cities and reported the highest order volume growth of 192 per cent, while kids’ wear has been the biggest gainer with over 200 per cent order volume growth online, according to the ‘Fashion e-commerce Report’ by Unicommerce.

it is no doubt that the increasing adoption of D2C (direct-to-consumer) among different fashion brands has enabled a firm connection with the consumer leading to higher growth.

“Fashion segment is one of the biggest contributors to the e-commerce industry of India with the highest order volume. We are confident that this report will help fashion e-tailers in understanding the changing dynamics of the fashion e-commerce industry,” said Kapil Makhija, CEO of Unicommerce.

 Furthermore, websites reportedly have 66 percent order volume growth and 77 percent GMV growth in FY-2021 as compared to the previous financial year, the report said.
The strong order volume growth supported with higher GMV growth has led to a 6 percent increase in average order value.

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In comparison to websites, marketplaces reportedly have 45 percent order volume growth and 33 percent, with an 8 percent decline in the average order value for FY-2021.

“This strongly reinforces that the fashion brands are investing aggressively to build a stronger D2C presence,” the findings showed.

However, the trend of shopping fashion online is getting popular in Tier 2 and 3 cities and beyond.

Companies can be seen fulfilling 20-25 percent of their omnichannel orders from the store, which is an indicator of the increase in adoption of omnichannel across the majority of brand stores.

Women wear holds the majority share of the e-commerce fashion market with a 50 percent market share in FY-21 and reported 30 percent order volume growth as compared to the previous financial year.

On the other hand, the kids wear section took the industry by surprise with over 200 percent order volume growth and the market share significantly increased from 3 percent in FY-2020 to 17 percent in FY-2021.