E-fashion set for explosive growth

livemint.com:

₹100 crore mark in sales, Bain & Co. expects it to grow further and at a fast clip. The number of such brands exceeding ₹250 crore in revenue will jump five times within five years, with categories like expressive wear, ethnic wear, and jewellery leading the sales; while athleisure or activewear will witness similar growth but with fewer brands.

Bain considered key operational metrics of over 700 digital disruptor brands, interviewing 1,100 online consumers, besides founders and retail experts. Bain & Co. estimates over 700 digital-first brands to exist currently in the fashion apparel and lifestyle space.

The growth of such brands will be primarily driven by Gen Z and millennial consumers, who have a high propensity to buy fashion online. Data shows 70-80% of the traffic to digital first brands originates from these two consumer segments. Consumer preferences are also shifting, with an increasing willingness to experiment with new brands and a growing desire to wear aspirational brands, the report said.

Meanwhile, the presence of international as well as homegrown e-marketplaces, which are serving pin codes that were hard to reach is helping more consumers to discover brands. E-commerce has democratized access to fashion, and the category has seen around 30% growth annually, since 2019, the report said. “Next phase of growth for such brands will be led by premiumization and a switch to branded clothing," Prashanth Aluru, chief executive and co-founder, TMRW, said.