Fashion e-commerce sees good profits

Many e-commerce companies dealing in fashion are seeing good profits in India, riding on substantial margins. For online firms, profit has not been the main concern, with volumes growth taking center stage. But now, with investors looking for profitability in companies they bankroll, every player is looking to earn. With margins of 20 to 60 percent, the fashion category is being perceived as a money churner.

Apparel and footwear sale has grown by 52 per cent from December 2014 to December 2015. The segment is expected to reach Rs 72,639 crores by the end of 2016. Lingerie seller Zivame, fashion marketplace Limeroad, and fashion social network Roposo had raised Rs 270 crores, Rs 200 crores and Rs 130 crores respectively in 2015 alone. Offline sellers like Shoppers Stop have, in fact, launched their own online platforms to face this competition.

Fashion-focused social networking portal Roposo, too, is on the path of being profitable by next year. The e-commerce arm for Spykar will be fairly profitable by 2020. The brand hopes to reach more consumers through this new platform, not only in Tier I but also in Tier II and III towns. It expects at least six to eight per cent of its total sales to come from the e-commerce space.