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Published
Jan 7, 2019
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Fashion retailers plan to go solo, reduce dependence on e-commerce players

Published
Jan 7, 2019

Indian fashion retailers are planning to develop their own e-commerce platform to boost sales as uncertainty continues to loom over e-commerce firms post the tightening of rules by the government in the sector.
 

Fashion retailers plan to go solo, reduce dependence on e-commerce players - DR


E-commerce is a key channel for fashion brands and currently estimated to be around USD 4 billion. The online fashion market is projected to grow 3.5-fold from to reach $14 billion by 2020.
 
However, the recent change in rules coupled with a new e-commerce policy in the making has forced several fashion brands to cut down on their dependence on leading e-commerce portals.

These fashion brands are strengthening their online presence and looking to sell directly by developing their own e-commerce websites.
 
“This season, our online sales are down 20-30% due to the ongoing reshuffle in Myntra and Jabong after Walmart took over Flipkart, while sales through our own ecommerce site doubled over last year,” a CEO of a global fashion retailer was quoted as saying by the Times of India.
 
“It’s different than sending large consignments in trucks, as there can be small-ticket orders such as a pair of shoes from a single customer. Returns from sale on online marketplaces could be as high as 20-30%, so that has to be managed too,” added another senior executive at a sportswear company. “
 
Flipkart’s fashion units, however, seem to be unperturbed with the current situation in the e-commerce sector and remain confident of maintaining its dominant position in the fashion e-commerce market in the coming years.
 
When contacted, a Myntra spokesperson said, “Myntra and Jabong continue to grow at a healthy rate with a firm focus on delivering the best of fashion and lifestyle for our customers.”

Flipkart, India’s leading homegrown online retailer, and its fashion arms Myntra and Jabong together control two-thirds of the country’s online fashion market.

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