Data and statistics of 2014-2015 Financial Year (FY) are out and it’s clear that the growth of online apparel market in India is refusing to slow down. As per the latest reports, the New Delhi based online marketplace, Snapdeal’s aim is to sell apparel worth $2 billion this year. That’s thrice in terms of value as compared to what they sold in the previous year.
According to Amit Maheshwari, Vice President – Fashion Merchandising of Snapdeal, in the recently concluded financial year they sold fashion products (clothes, accessories and footwear) worth $700 million! Nearly 60% of Snapdeal’s total sales and 35% of its total Gross Merchandise Value (GMV) comes from fashion category.
Based on the recent developments in Amazon and Snapdeal on the Fashion & Apparel front, it can be easily concluded that they are competing neck-to-neck. For instance, just last month Amazon partnered with India Fashion Week and announced their plans to launch designer store and take on board budding designers and craftsmen.
Not being someone to be left behind, Snapdeal is also getting their claws out. Snapdeal is going to invest heavily in the apparel and fashion category by expanding delivery areas, getting more sellers, spending on advertisements and tying up with fashion events.
They have also set-up business development teams in cities like Surat, Chennai and Hyderabad. One other big strategic step in this area was acquiring a stake in Gojavas. Snapdeal shelled out a whopping Rs.120 crore in March for getting 20% stake in the logistics firm. Earlier in February, they also acquired Exclusively.com, an online seller of premium and luxury clothes.
Mr. Maheshwari shared, “If you look at any mature market, for instance, China, fashion contributes close to 33% of the overall online sales, 30% comes from electronics, and the rest from ticketing and services. We are expecting the fashion and lifestyle category to grow larger in India, too.”
Good news for Indian Online Sellers as Maheshwari further added, “Currently, our sellers are spread across 500 cities and we are looking to increase that. We are not just looking to reach out to more customers, but by adding more pin codes (or places where it can deliver its products) we will be in a position to reach out to more sellers.”
While apparels are the fastest growing category without any doubt, other categories that have great growth potential are home furnishings, health and cosmetics.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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