Research and Markets predicts online fashion boom
India’s online fashion retail market is expected to grow at a compound annual growth rate of 63.45 per cent between now and 2020, says a new report from Research and Markets.
Its Online Fashion Retail Market in India 2016-2020 report says market growth is being boosted by the increase in online shopping in tier-two and -three cities.
Sales to consumers outside the metropolitan areas account for half of the total sales from leading online retailers such as Indiatimes, Jabong and Myntra, says the report. This is because of wider internet coverage and affordability.
Also adding to the demand for online retailing is a lack of branded brick-and-mortar stores in non-urban areas.
Meanwhile, says the report, companies such as Amazon and Flipkart are in talks with the government to improve the postal service so they can deliver products within 24 hours in any part of India.
Also, online companies are coming up with new strategies to overcome reluctance by Indians to buy without first examining merchandise.