India Online Fashion Retail Market Size 2024-2028

The India online fashion retail market is estimated to grow by USD USD 51.79 billion at a CAGR of 25.2% between 2023 and 2028. The market growth is driven by several key factors. Firstly, the rise in internet and smartphone penetration is expanding access to online services and digital platforms. Secondly, the growing acceptance of digital payment systems is making transactions more convenient and secure, encouraging more consumers and businesses to adopt these methods. Lastly, increasing e-commerce sales are boosting demand for digital payment solutions and online e-commerce platforms. These factors collectively highlight the expanding digital ecosystem and its impact on consumer behavior and market dynamics.

Market Overview

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Market Segmentation

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Product Outlook
  • Apparel
  • Footwear
  • Bags and accessories

• Gender Outlook 
  • Women
  • Men
  • Children

By Product

The apparel segment is estimated to witness significant growth during the forecast period. High-end apparel includes tops, blouses, skirts, casual shirts, formal shirts, t-shirts, sweaters, sweatshirts, tank tops and vests. Underwear includes trousers, jeans, jeggings, sundresses, shorts and skirts. Underwear and nightwear include pajamas, bathrobes, bodysuits, briefs, socks, men underwear and briefs. Clothing for children and infants includes cloth diapers,  slippers, sun protection clothing, socks and boots.

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The apparel segment was the largest segment and was valued at USD 6.67 billion in 2018. Many online retailers offer a wide range of clothing at prices lower than the prices of mainstream brands in offline retail stores. This has motivated many Indian consumers to shop online. The growth of the Indian online fashion retail market in the apparel segment is also due to the presence of many e-commerce companies, such as Walmart Inc. (Flipkart), Snapdeal Ltd., and Reliance Industries Ltd. (Ajio), Adidas AG., eBay Inc., Tata Sons Pvt. Ltd., Aditya Birla Fashion and Retail Company Limited. and Amazon.com Inc.  Thus, such factors will drive the growth of the market during the forecast period. 

Who are the Major India Online Fashion Retail Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• The Gap Inc.: The company offers online fashion products such as jackets, shirts, and bottoms for men and women.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Adidas AG
• Aditya Birla Fashion and Retail Ltd.
• Alibaba Group Holding Ltd.
• Amazon.com Inc.
• Benetton Group Srl
• Dolce and Gabbana SRL
• eBay Inc.
• Gildan Activewear SRL
• GioTech
• H and M Hennes and Mauritz GBC AB
• Levi Strauss and Co.
• Naaptol Online Shopping Pvt. Ltd.
• One97 Communications Ltd.
• Reliance Industries Ltd.
• Shoppers Stop Ltd.
• Snapdeal Ltd.
• Tata Sons Pvt. Ltd.
• V Mart Retail Ltd.
• Walmart Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Dynamics

The market is thriving due to factors like increasing urbanization, rising disposable incomes, and the growth of the urban population. With the rise of nuclear families and a surge in smartphone users, e-commerce sales are booming. Consumers now prefer omnichannel retailing and utilize various online shopping portals to access a wide range of fashion and fast fashion choices. Key participants and key vendors in the industry are adapting to this trend, offering diverse styles and wardrobe essentials to cater to different preferences. There's also a growing emphasis on Breduce the use of synthetic pesticides. This market is dynamic, with the apparel industry continually evolving to meet the demands of online shoppers.

Key Market Driver

The growing acceptance of digital payment systems is the key factor driving the growth of the market. Easy access and hassle-free online payments, enhanced customer confidence in online payments. 24/7 customer support, an easy refund policy, and lower prices are some of the key factors that boost sales of fashion lines in India. Online retailers offer several payment options, such as credit cards, e-wallets, cash on delivery (COD), online banking, and cash on order.

Nowadays, online retailers are offering more and more diversified payment channels to attract more customers. They partner with payment providers to process transactions, allowing them to focus on improving the shopping experience for their customers. Therefore, such factors are expected to drive market growth during the forecast period.

Significant Market Trends

The rise of social media is the primary trend in the market. The growing mobile penetration and increasing use of social media have provided strong growth opportunities for the market players. Social commerce platforms facilitate social interactions and transaction-based user experiences. In social commerce, the social network is used as an e-commerce platform,  allowing customers to purchase products directly from the news feed. Major social media companies, including Facebook, Instagram, YouTube, Pinterest, and Snapchat, offer social commerce opportunities through their platforms.

Besides, social commerce helps retail and e-commerce brands by redirecting traffic to their retail websites, increasing brand reach, and building trust among customers. With the development of social commerce, the number of e-commerce orders has risen. Hence, the rising mobile internet penetration and increasing popularity of social media will increase the demand for online fashion retail solutions, thereby boosting the growth of the market during the forecast period.

Major Market Challenge

The presence of payment barriers is a challenge that affects the growth of the market. Given the familiarity and concerns about cyber safety, a considerable portion of the population in India is more comfortable with cash transactions. Access to bank services and the necessary means of making payments over the Internet are not widely available for a large number of prospective customers, particularly in rural areas. Additionally, the online payment process can be confusing for some users, mainly those unfamiliar with digital platforms. Therefore, factors such as cash preference, lack of banking accessibility, and complexity of payment processes will impede the growth of the market during the forecast period.

Market Analyst Overview

The market is evolving with trends like personalization and custom apparel a focus on various fashion categories such as athleisure, innerwear, and ethnic fusion wear. There's a growing interest in sneaker culture, especially among urban consumers. Even rural markets are embracing online fashion, aided by improved logistics.

Sustainability is a key driver, leading to the adoption of eco-friendly practices and materials like organic cotton, bamboo, and linen. Brands are also using recycled materials such as polyester and nylon to reduce waste and pollution. The industry is focusing on reducing water and energy consumption and using low-impact dyes. Moreover, there's an emphasis on fair labor practices and ethical fashion. The market is diversifying with athletic wear being worn as casual or street-style pieces, blurring the lines between formal and functional clothing. This trend is supported by innovative fabrics with moisture-wicking and UV protection properties, offering comfort and performance. Overall, the online fashion market is driven by a blend of style, sustainability, and technological advancements.

The industry is adapting to changing consumer preferences and is increasingly available through organized retail channels, including online platforms. There's a growing emphasis on sustainable fashion, with many brands using recycled polyester and nylon to reduce environmental impact. In the fashion world, there's a focus on eco-friendly practices and materials, such as reducing water consumption and using recycled materials. This trend extends to leisure and gym wear, where comfortable and performance-focused gear is in demand. Casual wear is becoming more versatile, with a fusion of athletic and formal wear styles. Fashion designers are incorporating technology into their designs to enhance fabric quality, design, and versatility. The industry is also moving towards ethical and fair trade practices, ensuring that Eco-fashion remains both stylish and responsible.

What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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