Fashion expected to drive online sales in 2018

By

Isabelle Crossley

Published
Jan 1, 2018

Fashion, along with groceries, is predicted to be the main driving force behind India’s e-commerce market this year, which promises to be a far cry from how the online market was a year ago.

Flipkart, widely accepted as India’s largest e-commerce retailer, has announced that fashion will be a major driver in their 2018 strategy.

“For Flipkart, fashion and grocery will be among the business focus areas in 2018. Both touch the widest customer base and have the highest potential to disrupt due to their sheer market size,” said Kalyan Krishnamurthy, the CEO of Flipkart.

“On many levels, Indian e-commerce has matured since Flipkart started in 2007. People from diverse sections of society, age groups and regions have embraced it for its variety, convenience and affordability,” Krishnamurthy elaborated.

This diversification of the online market is reflected in the 2018 expansion strategies of many online fashion retailers who are looking to tier 2 and 3 cities for new customers. Clothing retailers such as Naaptol, Wildcraft, and Max Fashions to name but a few have announced that this new year they will be expanding into more rural areas and Flipkart’s fashion arm Myntra has also reported a surge in customers from tier 2 and 3 locations. Due to this year’s performance, Myntra announced that they are close to breaking even in November.

The opening up of the Tier 2 and 3 cities to the online fashion market has boosted garment, accessory, and makeup sales greatly and, with many such brands taking note and focusing their attention on these areas, the online fashion market looks set to continue expanding this year.

Krishnamurthy has referred to 2017 as “a watershed year” as there was a boom in online start-ups after a slump in funding during 2016. Online shopping has become a regular pastime for many shoppers in India and, as more and more fashion brands embrace the omni-channel approach, the customer base should only increase.