Easy Entry: Global brands prefer the e-commerce route

Good news for consumers. Many high fashion international brands are now choosing to launch directly through e-commerce sites in India. Many brands such as Bjorn Borg, Drunknmunky, Replay, Rockland, Gas, Aeropostale and many more have tied up with various online fashion/lifestyle portals to launch in India. Recently Amazon India signed a deal with four fashion brands Bjorn Borg, Drunknmumky, Replay and Rockland to sell their products exclusively in India. Even Aeropostale will be selling exclusively on Amazon. In the last six months, the number of international brands have doubled and more than two million fashion products are now available.

Various factors make it easy for entry

What has made it easy for foreign brands to enter India via e-commerce sites is the absence of clear cut policies. There is a total absence of regulations around selling through third party portals. Besides this, there is lack of quality infrastructure and high real estate costs. No licenses are required when selling through online portals. Even brands which are already present here have realised that they are restricted to a few cities if present in the brick-and-mortar capacity. Whereas when present through the e-commerce channel, they can reach out to a wider audience. As per analysts, this strategy works best for the global players to test the Indian market.

Win-win situation for brands and consumers

At Amazon Fashion, the men’s apparel selection has grown over 450 per cent since the launch with over 200 per cent year-on-year growth in sales. The western apparel selection for women has seen a growth in sales of over 800 per cent in the last one year. And the brands that are available are simply mind-boggling. From Superdry, Gas, Quicksilver, Fossil, Steve Madden, The North Face, Brooks Brothers to Jeep, the list is only growing. Swedish brand Bjorn Borg, which has stores in seven European countries, launched its leather sneaker collection and men’s innerwear on Amazon this month. Similarly, Californian brand Drunknmunky will be launching its sneaker and running shoes range for both men and women.

India is one of the fastest growing economies, and e-commerce is growing at an equally fast pace. As per a study by Assocham, India’s e-commerce market is likely to touch 38 billion dollars (25,33,650 crores) mark in 2016. It would be a massive jump over the 23 billion dollars (Rs 15,3363 crores) revenues clocked by the industry in 2015. The study revealed that Mumbai ranks first in online shopping followed by Delhi, Ahmedabad, Bengaluru and Kolkata. In 2015, the highest growth rate was seen in the apparel segment which was 69.5 per cent over last year and this was followed by electronic items up 62 per cent, baby care products up 53 per cent, beauty and personal care products at 52 per cent and home furnishings at 49 per cent.