Kidswear rules online fashion with 200% rise in order volume: Unicommerce

According to the “Fashion E-commerce Report” by Unicommerce, another interesting trend was that online fashion gained prominence in tier-2 and tier-3 cities

Topics

Indian fashion industry | Fashion e-commerce | Online fashion


Neha Alawadhi  | 
New Delhi 

In the online fashion world, kidswear emerged a winner last year with over 200 per cent order volume growth, and a market share rise to 17 per cent in FY21 from 3 per cent in the previous year.

According to the “Fashion E-commerce Report” by e-commerce supply chain focused software-as-a-service (SaaS) platform Unicommerce, another interesting trend was that online fashion gained prominence in Tier-2 and Tier-3 cities. It analysed fashion trends for FY21 and FY20 with a sample size of over 70 million orders.

The online fashion industry continued to grow with order volume growing 51 per cent and gross merchant value growing 45 per cent in FY21 as compared to the previous financial year. The faster volume growth as compared to GMV led to a marginal decline of 4 per cent in the average order value, the report found.

“Fashion segment is one of the biggest contributors to the e-commerce industry of India with the highest order volume. This report deep dives into the fashion industry to analyse the trends in the online fashion space. It’s a unique report that sheds light on changing consumer buying patterns and preferences, rising adoption of D2C and omnichannel and new segments in the online fashion space,” said Kapil Makhija, CEO of Unicommerce.

The report further found as much as 118 per cent order volume growth came from Tier-2 cities, while Tier-3 and Tier-4 cities drove 192 per cent order volume growth.

Adoption of omnichannel sales across the majority of brand stores also rose due to the Coronavirus (Covid-19) pandemic. Omnichannel implies that a retailer’s customers get the same buying experience and treatment in both physical stores, online and through mobile devices.

While a majority of omnichannel orders (55-60 per cent) are still being generated from brand websites, the marketplaces have grown omnipresence significantly in the last 15-18 months from being a negligible contributor last year to now contributing 40-45 per cent of overall omnichannel orders.

Companies are now fulfilling 20-25 per cent of their omnichannel orders from the brand store, indicating increased adoption of omnichannel sales across a majority of these stores.

Women’s wear continued to hold the majority share of the e-commerce fashion market with a 50 per cent market share in FY21 and reported 30 per cent order volume growth in FY21 as compared to the previous financial year.

The order volume of western wear showed a growth of 57 per cent in FY21 compared to a year ago, and accounted for 65 per cent market share in FY21.

“Interestingly, the men’s apparel segment is the biggest contributor to the overall western wear segment and it accounted for 55 per cent market share of overall western wear in FY21 and reported 40 per cent order volume growth. The kids western wear segment reported a sharp order volume growth of over 300 [er cent and its market share increased from 3 per cent in FY-20 to 28 per cent in FY21,” the report found.

On the other hand, the ethnic wear segment reported an order volume growth of 41 per cent in FY21, majorly led by the women’s apparel segment and constitutes a 95 per cent market share of overall ethnic wear in FY21. It reported 43 per cent order volume growth.

Casual wear continued to be a preferred choice of consumers but formal wear also gained momentum with over double order volume growth.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor