Online Fashion Industry Reports 51% Order Volume Growth in FY21: Report
The online fashion industry saw order volume growth of 51% and gross market value (GMV) increase of 45% in fiscal year 21 compared to the previous fiscal year, reported Thursday a report from Unicommerce.
The faster volume growth compared to GMV resulted in a marginal 4% drop in average order value, according to the Fashion E-commerce Report.
Unicommerce, an e-commerce focused software as a service (SaaS) platform, analyzed the fashion trends for the period FY2021 and FY2020 with a sample of over 70 million orders.
âFashion brands have been at the forefront of reinventing themselves, redefining their strategy and realigning themselves with rapidly changing business environments and changing consumer needs. The industry has also observed several retail brands establishing their niche in the e-commerce industry, “It said.
The growing adoption of D2C (direct to consumer) among fashion brands has helped them build a strong relationship with the consumer, resulting in higher growth.
The brand’s websites reported 66% growth in order volume and 77% GMV growth in fiscal 2021 compared to the previous fiscal year, according to the report.
Strong growth in order volume, supported by higher GMV growth, resulted in a 6% increase in average order value, he added.
Compared to branded websites, marketplaces saw 45% growth in order volume and 33% GMV growth, with an 8% decline in average order value for fiscal year 2021 – which strongly reinforces the fact that fashion brands invest aggressively to build a D2C Presence.
Notably, the trend of online fashion shopping is becoming predominant in Tier II and III cities, with 118% order volume growth from these locations leading to 192% order volume growth.
Women’s clothing held the majority share of the online fashion market with a 50 percent share and saw a 30 percent growth in order volume in fiscal 2021 compared to the previous fiscal year.
On the other hand, the children’s clothing segment recorded over 200% growth in order volume and the market share increased significantly from 3% in 2020 to 17% in 2021.
The men’s clothing segment has maintained steady growth with order volume growth of 37% and a market share of 33% in fiscal year 2021, according to the report.
Casual accounted for 84% market share in FY21 and 49% year-on-year order volume growth in FY 2021. Formal wear category grew over 100% % of order volume.
âThe fashion segment is one of the biggest contributors to India’s e-commerce industry with the highest order volume. This report delves deep into the fashion industry to analyze trends in the online fashion space … this report will help e-fashion to understand the changing dynamics of the fashion e-commerce industry, âsaid Kapil Makhija, CEO of Unicommerce.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)