The online fashion market in India has witnessed remarkable growth in recent years, playing a significant role in the overall expansion of the country’s fashion industry. According to global technology research company Technavio, the share of India’s online fashion retail market is projected to increase by $22.97 billion from 2021 to 2026, with a compound annual growth rate (CAGR) of 18.83%.
In a highly competitive and rapidly evolving market like fashion retail, success lies in adapting to customer expectations and focusing on building a unique brand and experience. Let’s explore five prominent homegrown online retailers that are striving to maintain their position and capture a larger share of India’s flourishing fashion market year after year.
- Ajio: Ajio is Reliance Retail’s digital commerce initiative, launched in 2016. Headquartered in Bengaluru, Karnataka, the retailer offers a wide range of apparel, footwear, fashion products, and electronics for women, men, and kids. Ajio expanded its portfolio in 2020 to include global luxury brands under the sub-brand Ajio Luxe, securing profitable deals with renowned names such as Superdry, Gas, Steve Madden, Dune London, and Cult Gaia. Ajio continues to demonstrate impressive growth, with a 33% increase in its customer base and a 62% YoY growth in catalogue size as of January 2023.
- Flipkart: Founded in Bengaluru, Flipkart is an Indian e-commerce company that initially focused on online book sales before expanding into various product categories, including consumer electronics, home essentials, groceries, and fashion and lifestyle products. With the acquisitions of Myntra and Jabong, Flipkart became a dominant player in the online fashion market, holding 70% of the market share in 2018. The company leveraged digital ads featuring Indian celebrities and its flagship sale event, “The Big Billion Days,” known for offering massive discounts on branded products. Flipkart reported an 18% revenue growth for FY2022, with fashion, particularly unbranded fashion, contributing significantly to its success, especially in tier-2 markets.
- Meesho: Established in 2015, Meesho is a Bengaluru-based social commerce platform founded by Vidit Aatrey and Sanjeev Barnwal. It facilitates retail distribution, connecting small retail merchants with manufacturers and resellers. Meesho offers a vast selection of over 5 million products across 650 product categories, ranging from apparel and accessories to furniture and homeware. Meesho’s asset-light model and cost-effective products have attracted customers across income classes. According to reports, the platform had 120 million active users in 2022, with nearly 100 million users added in the last two years.
- Myntra: Founded in 2007 in Bengaluru, Myntra initially operated on a B2B model, allowing customers to personalize products like t-shirts and mugs. In 2011, the company shifted its focus to selling fashion and lifestyle products. In 2014, Myntra was acquired by Flipkart, and later in 2016, it acquired Jabong, strengthening its position in the Indian fashion market. Myntra currently offers over 6,000 international and Indian fashion and lifestyle brands, serving customers in over 19,000 pin codes across the country. In the financial year 2022, Myntra’s operating revenue surged by 45.5% to reach Rs. 35.01 billion.
- Tata CLiQ: Tata CLiQ is a flagship digital commerce initiative by Tata Unistore Ltd., a part of the Tata Group. Established in 2016 and headquartered in Mumbai, Tata CLiQ initially sold electronics before focusing entirely on fashion. In December 2016, it launched Tata CLiQ Luxury, a venture offering luxury fashion and lifestyle products from over 100 renowned brands. Tata Unistore Ltd. reported a significant revenue increase of 137% to reach Rs. 844.6 crore in FY22.
These homegrown e-commerce platforms are making a substantial impact in the online fashion market in India. With their diverse offerings, innovative strategies, and customer-centric approaches, they are well-positioned to capitalize on the industry’s rapid growth.