High margins drive fashion biz in e-tailing market

A recent study by Technopak Advisors reveals the e-tailing market will grow to

at least 19 billion dollars (Rs 1,13,069 crores) by 2019 with chances to go up to 38 billion dollars (Rs 2,26,138 crores) and by then, fashion and lifestyle will have a 30 percent share of the market and will be a category as big as 5.7 billion dollars (Rs 33,920 crores).

No wonder, most e-tailers are focusing on high margin fashion business to achieve growth. While earlier, experts felt that the online sales of apparels and other lifestyle products may not kick off owing to customers’ preference for touch, feel and try factors, in the past few years online fashion and lifestyle category has proved the notion wrong. It has grown to a 575 million dollars (Rs 3,421.8 crores) category. And is estimated to occupy the top slot by touching at least 5.7 billion dollars (Rs 33,920 crores) by 2019.

Fashion and lifestyle, which includes apparels, footwear, bags, belts, wallets, watches, eyewear, personal care and jewellery, occupies 25 percent of the 2.3 billion dollars (Rs 13,687.3 crores) e-tail market in India, next only to electronics which has a 30 percent share. As per the study, the growth of the fashion and lifestyle category in ecommerce would be driven by different kinds of players like e-tailers Myntra and Jabong focused on multi-brand lifestyle products, marketplace models such as Flipkart, Snapdeal and eBay and brick and mortar apparel retailers and brands like Pantaloons, Shoppers Stop, John Miller and Puma.