Fashion e-commerce in 2024: Where’s the buzz?

Online spending on clothes: The uptick in consumer demand and spending on fashion e-commerce is no longer consolidated to the big aggregators, with the market choices spread vast and according to niche.

Among consumers spending on D2C brands, 28 per cent repeat sales were seen for fashion, which is only second to beauty products.

As per GoKwik’s network data report, fashion clocking the second-highest number of orders is indicative of the individuality in the space, leading to an uptick in the number of brands in subcategories which cater to diverse consumer demands.

Highest-selling products were Men’s T-shirts, both in black and white and black tops for women, the survey revealed.

The pioneers

Source: Freepik

Flipkart’s lifestyle marketplace Myntra, which rose to mainstream as a dedicated lifestyle platform for clothes, saw net loss jumping over 30 per cent in the financial year ended March 31, 2023. The Bengaluru-based e-commerce platform has posted a net loss of Rs 782 crore in FY23.

Akin to Amazon and Flipkart for all goods, Tiger Global-backed Myntra focuses on third-party sellers listing their fashion products to customers. With brand campaigns and flexible returns, trials and other consumer-friendly offerings, Myntra is accessible with an app and website.

The platform generates revenue from transaction fees that vendors pay, as well as logistics, advertising and consultancy.

A pressure on reserves reflects a deeper pattern of slow fashion, more people shopping offline or D2C players having their own platforms with deep discounts and recurring incentives.

Reliance Group has also ventured into fashion and lifestyle e-commerce with Ajio, which has an estimated annual revenue of $1.7M per year. In 2022, the company accounted for about 10 to 15 per cent of sales as per analytical platform ecommercedb.

Nykaa Fashion has also emerged as a preferred platform for fashion, and led its parent Nykaa to register a better Q2 on the back of fashion demand - especially in the October to December festive season.

Tata Neu, the consolidated app by the salt-to-software conglomerate, has its fashion arm and lifestyle chain Westside listed on the platform.

Emerging players

Source: Freepik

D2C brands listed on e-commerce platforms are now foraying into acquiring sales through their own websites. Robust social media marketing and handicrafts, sustainability and niche are some of the themes that are drawing new-age consumers.

Men's apparel firm Snitch, which started its journey as a B2B player in 2019,  expects a revenue of Rs 250 crore in the current fiscal. The company launched their app about two years ago with over two million downloads of the app and 55 per cent of the revenue coming through the same, The company also plans to launch 7-8 offline outlets in cities and towns including Surat, Mumbai, and Pune this fiscal year

Mumbai-based Suta, founded in 2020 specialises in handcrafted sarees. As per Tofler, its operating revenues range from Rs 1 crore to Rs 100 crore for the financial year ending on 31 March 2022. 
Themes like slow fashion and thrifting are also on the rise, and clothes made from recycled material are gaining investor interest.

UNIREC, that creates clothing made from recycled PET bottles, has only recently announced a Rs 1.5 crore-seed raise led by Singapore-based fund BeyondSeed.