Decoding the future of the e-retail market in India

The retail market in India is witnessing robust growth with e-retail making headlines on account of the new influx of sellers and shoppers in the online space. According to a Bain-Flipkart report, India’s e-commerce market is expected to cross $160 billion by 2028, from an estimated $57–$60 billion in 2023. This represents an annual addition of 8-12 million dollars since 2020. The growth of e-retail can be attributed to multiple factors such as the increased penetration of the Internet, and high disposable income among others.?

The e-retail industry has witnessed the emergence of new models such as Quick-commerce (q-commerce) platforms, hyper-value commerce, inspiration-led commerce (live commerce), and fast fashion. The advantage of discreet shopping, the influence of social media and the changing mindsets of Gen Z and millennials have contributed to the growth of fast fashion within the female apparel industry. The women's apparel market in India is projected to grow by 3.87% (2023-2027) resulting in a market volume of $ 56.89bn in 2027. India’s fast fashion market is expected to grow 30%–35% per annum between 2022 and 2027.?

Numerous fashion brands are capitalising on favourable market conditions to cater to the diverse consumer base and establish a name for themselves in the industry. The Bain-Flipkart report states that twice as many sellers were added in 2022 compared to 2021. Two-thirds came from Tier 2+ cities, and three-fourths operate in the lifestyle, home, and electronics categories.?

Bold & Bae (B&B) is a D2C lifestyle brand that caters to women fashion from across the country with superior lingerie, athleisure, beachwear, loungewear and casual wear. 7 out of 10 shoppers in India today reside in tier 2 cities if reports are to be believed. One-third of them are Gen Z. A third of online shoppers come from low-income or low-middle-income cohorts.?

The e-commerce market in these cities holds immense potential and Bold & Bae has leveraged the power of digital platforms to reach individuals from tier 2 and tier 3 cities. B&B aims to empower the women of tier 2 and 3 cities with superior fashion choices. Indians from Tier II cities spend an average of two hours and 25 minutes per week shopping online, devoting approximately 16% of their income to these purchases. Among the Tier II cities, Guwahati, Coimbatore, and Lucknow reported high engagement in e-commerce. Attractive discounts and easy exchange policies are the key drivers of online shopping in tier-2 and tier-3 cities.?

An interesting insight from the Cybermedia research report also indicates that women entrepreneurs and others spend an average of 149 hours annually on e-commerce. The growing empowerment of women and their increased participation in the workforce influences purchasing decisions and increases demand for a myriad of styles and designs.?

Realizing the immense potential of e-retail in India and leveraging the digital ecosystems, robust logistics support and enhanced reach, B&B is catering to today’s aspirational women with lucrative discounts, fast delivery and a diverse range of products manufactured with state-of-the-art technology.?

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