Study: Fashion and lifestyle to overcome electronics by 2020

A recent study conducted by Google India and consulting firm AT Kearney finds that fashion and lifestyle segments will overtake consumer electronics which at the moment dominates the sales in Indian e-commerce market. Fashion and lifestyle will generate about 35 per cent of the overall gross merchandise value (GMV) by 2020.

Women shoppers will more than double their share of online spend with 5x growth in number by 2020. Also, nine out of 10 buyers currently will continue to buy online even if there’s no extra discounting. This is because of factors like huge assortment of products, convenience and availability of multiple brands. It is further estimated that e-tailing will drive 25 per cent of the total organised retail sale in India by 2020. The number of online shoppers will swell to 175 million by 2020 from the present 50 million, and that one third of customers will drive two-third of total online shopping spends.

What is interesting is that every second search on Google is related to fashion, thus indicating how things will be over the next two to three years. However, lifestyle and consumer electronics will continue to dominate e-tail spend. But lifestyle will overtake consumer electronics by 2020.