NEW YORK, Aug. 6, 2024 /PRNewswire/ -- The online fashion retail market size in India is estimated to grow by USD 51.79 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  25.2%  during the forecast period.  Rise in internet and smartphone penetration is driving market growth, with a trend towards rise of social media. However, presence of payment barriers  poses a challenge. Key market players include Adidas AG, Aditya Birla Management Corp. Pvt. Ltd., Alibaba Group Holding Ltd., Amazon.com Inc., Benetton Group Srl, Dolce and Gabbana S.r.l., 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., The Gap Inc., V Mart Retail Ltd., and Walmart Inc..

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Key Market Trends Fueling Growth

The Indian online fashion retail market is experiencing significant growth due to the increasing mobile penetration and the rising use of social media. Social commerce, a new e-commerce trend, is revolutionizing the industry by enabling transaction-based social interactions and user experiences. Major social media platforms, including Facebook, Instagram, YouTube, Pinterest, and Snapchat, offer opportunities for social commerce. Fashion brands showcase their products on these sites through advertisements, allowing users to make purchases directly from their news feeds. Social commerce provides a wide range of choices, shared user experiences, and referrals, influencing consumer decision-making. Brands benefit from increased website traffic, expanded reach, and customer trust. The growth of social commerce has led to an increase in e-commerce orders, making it a crucial driver for the online fashion retail market in India. 

The Indian online fashion retail market is witnessing a significant surge due to urbanization, rising disposable incomes, and an increasing urban population. Technology plays a crucial role with moisture-wicking fabrics, UV protection, and design trends leading the way. Versatile apparel, footwear, accessories, and jewelry categories are popular. Key vendors include organized retailers offering personalization and customization. Fashion categories like athleisure, innerwear, ethnic fusion wear, sneaker culture, and sustainable fashion are trending. Rural markets are also tapping into this trend with logistics and digital payment systems facilitating online sales. E-commerce sales are booming, with key participants like Amazon, Flipkart, and Myntra leading the charge. The publisher's data from multiple sources indicates a summation of over USD35 billion in online fashion retail sales in 2025. 

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Market Challenges

• The online fashion retail market in India faces challenges due to consumer preferences for cash transactions, limited banking access in rural areas, and concerns over digital security. Approximately 25,000 inhabited villages in India lack mobile connectivity and internet, making online shopping and digital payments difficult. Additionally, the number of payment frauds has increased, reaching 1.5 million in March 2024 from 1.15 million in the previous six months. Furthermore, some users find online payment processes confusing. These factors, including cash preferences, limited banking access, and complex payment processes, will hinder the growth of the online fashion retail market in India during the forecast period.
• The Indian online fashion retail market is witnessing significant growth in various segments such as innerwear, ethnic fusion wear, sneaker culture, and rural markets. However, logistics and digital payment systems pose challenges. Sustainable fashion, including eco-fashion and ethical fashion, is gaining popularity with consumers seeking wardrobe essentials made from organic cotton, bamboo, linen, and recycled materials. Key parameters like water and energy consumption, waste, pollution, and fair labor practices are crucial for sustainable fashion. The apparel industry includes styles ranging from athletic wear and leisure wear to casual wear, street-style pieces, formal wear, and performance-focused gear. Key participants include online shopping portals, fashion designers, and key vendors. Summarizing data from multiple sources, the market is expected to grow at a steady pace, driven by consumer preferences and omnichannel retailing.

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Segment Overview 

This online fashion retail market in India report extensively covers market segmentation by

1. Product 
   • 1.1 Apparel
   • 1.2 Footwear
   • 1.3 Bags and accessories
2. Gender 
   • 2.1 Women
   • 2.2 Men
   • 2.3 Children
3. Geography 
   • 3.1 APAC

1.1 Apparel-  The online fashion retail market in India is growing rapidly. In 2020, the market size was valued at USD3.8 billion and is projected to reach USD50 billion by 2026. Consumers in India are increasingly preferring the convenience of shopping online for fashion items. E-commerce platforms like Amazon, Flipkart, and Myntra are leading the market, offering a wide range of brands and styles. The market growth can be attributed to the increasing internet penetration, rising disposable income, and the growing trend of online shopping.

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Learn and explore more about Technavio's in-depth research reports

The global Online Apparel Retailing market is experiencing significant growth, driven by increasing e-commerce adoption and a shift towards digital shopping experiences. With advancements in technology and changing consumer preferences, online apparel sales are set to expand, providing opportunities for brands to reach a global audience.

In India, the Jewelry market is flourishing, fueled by rising disposable incomes and growing demand for luxury and traditional pieces. The sector is expected to continue its upward trajectory, supported by both domestic and international consumer bases seeking quality and design.

Research Analysis

The online fashion retail market in India is experiencing rapid growth, fueled by urbanization, increasing disposable incomes, and a growing urban population. Nuclear families, with their busy lifestyles, are turning to online shopping portals for convenience. The market caters to various segments, including Apparel, Footwear, Accessories, and Jewelry. Styles ranging from traditional to contemporary, Wardrobe essentials, Eco-fashion, and Ethical fashion are all readily available. Sustainable materials like Organic cotton, Bamboo, Linen, and Synthetic pesticide-free fabrics are gaining popularity. Urban India's high Internet penetration and large number of Smartphone users facilitate seamless online shopping experiences. Digital payment systems ensure secure transactions, and the shift towards Omnichannel retailing is providing a seamless shopping experience, making online shopping the new norm.

Market Research Overview

The online fashion retail market in India is witnessing significant growth due to urbanization, rising disposable incomes, and an increasing urban population. Nuclear families and the growing number of smartphone users are fueling the demand for apparel, footwear, accessories, jewelry, and more. The fashion industry is expanding with various categories such as athleisure, innerwear, ethnic fusion wear, sneaker culture, and sustainable fashion gaining popularity. Urban markets are leading the trend with a focus on personalization and customization. Organized retail is on the rise, with e-commerce sales contributing significantly to the industry's growth. Omnichannel retailing and online shopping portals are key participants in this market. Key parameters such as styles, comfort, functionality, and sustainability are driving the demand for various fashion categories. Eco-fashion and ethical fashion are gaining traction, with a focus on organic cotton, bamboo, linen, and recycled materials. The use of synthetic pesticides and fertilizers is being replaced with recycled materials like recycled polyester and recycled nylon. Sustainability is a key concern, with a focus on reducing waste, pollution, water consumption, and energy consumption. Low-impact dyes and fair labor practices are essential for ethical and sustainable fashion. The use of technology in fabric and design, such as moisture-wicking and UV protection, is also gaining popularity. Athleisure, leisure wear, gym wear, and performance-focused gear are in demand, with a focus on comfort and functionality. Casual wear and street-style pieces are also popular, as are formal wear and fashion designers' creations. The future of the online fashion retail market in India looks bright, with technology and sustainability at the forefront.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• • Apparel
  • Footwear
  • Bags And Accessories
• Gender
• • Women
  • Men
  • Children
• Geography
• • APAC

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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