Cloud-based e-commerce solution company, Unicommerce, released a “Fashion E-commerce Report”, according to which, India’s online fashion industry has seen a 51 per cent growth in order volume as well as a gross merchandise value (GMV) growth of 45 per cent. The report also states that the average order value of the industry has declined marginally by four per cent.
As per the report, as more fashion brands adopt a direct to consumer (D2C) approach, their connection to the consumer grows stronger as well. This reflects in brand website statistics which see a 66 per cent order volume growth and 77 per cent GMV growth in FY21 as compared to the previous financial year, leading to a six per cent increase in average order value. In comparison, marketplaces have seen lower growth, with their order volume growth at 45 per cent and GMV at 33 per cent, leading to a decline of eight per cent in average order value for FY21.
"Fashion labels have been at the forefront of re-inventing, re-strategising, and re-aligning themselves to rapidly evolving business environments and changing consumer needs. The industry has also observed multiple retail brands establishing their niche in the e-commerce industry," the report by Unicommerce states. The company has analysed fashion trends for the period of FY21 and FY20 with a sample size of over 70 million orders for the report.
In addition to positive indications for the D2C approach, an upward trend in buying from tier-II and -III cities was also reported, with order volume growth of 118 per cent, driving 192 per cent order volume growth.
Amongst the different segments, kids wear saw the highest growth of 200 per cent in volume growth as well as 17 per cent increase in market share as compared to three per cent in the last financial year. Comparatively, the segment with the highest market share of 50 per cent, womenswear, saw a growth of 30 per cent in order volume in FY21.
Kapil Makhija, CEO of Unicommerce, said in a statement, "Fashion segment is one of the biggest contributors to the e-commerce industry of India with the highest order volume. This report deep dives into the fashion industry to analyse the trends in the online fashion space... this report will help fashion e-tailers in understanding the changing dynamics of the fashion e-commerce industry."
Image used for representational purposes only.