Indian
e-commerce industry has been growing at a scorching rate during the last few
years with hundreds of million dollars being invested by venture capital funds
in the sector. E-commerce has been around in India for more than a decade but
has become main stream only in the last few years.
Online shoppers have now graduated
from buying only Books/Electronics to buying Clothes, Shoes and Accessories. In
fact, as per a recent study by Accel Partners,
Fashion category recorded highest number of transactions in 2013. As per this
study, Fashion is expected to grow by 400% in next three years.Baggout.com conducted
a survey amongst its users to dig deeper into this trend and the survey
produced some deep insights into the underlying reasons as well as possible
risks to this growth story.
Main
findings from the survey are –
I.
Flipkart
and Snapdeal are the best rated retailers and are ahead of vertical sites
including Myntra and Jabong
II.
Clothes
and Footwear are the two most popular categories in Fashion
III.
There
are a number of fundamental reasons leading to growth in online Fashion sales
including Ease of shopping from home, low prices, discounts and prolific
Product collection available online
IV.
50% respondents buy Fashion products (Clothes,
Shoes, Accessories) online at least once a month while 31% buy rarely or never
buy online
V.
However,
the industry needs to still solve a few problems so that this growth story does
not get derailed. The biggest impediment to buying online is the inability to
check for fitting which discourages a lot of people from buying online in spite
of the liberal return policies of online retailers. The other big problem is
the lack of touch and feel.
VI.
Online
buyers decide to buy from a retailer based on a number of factors including
Product Collection available and Pricing on the retailer’s website
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