KIT: Online apparel retail

Strategic tools for the practising manager

Online retail is the next growing phenomenon in the Indian retail growth story. Changing lifestyles, increasing time poverty and the convenience to buy things online has paved the way for Indian consumers to have a ‘consumer friendly & hassle-free online shopping experience’. The current market for non-store retailing in India is estimated at USD 3.2 billion and is growing at a rate of over 23 per cent.

Apart from services, the online platform is fast catching up in other product categories, including the touch-and-feel experience categories such as ‘apparel’. Platforms such as Myntra.com, Fashion&You.com, Zovi.com, etc. offer a lot of ease and convenience to customers in terms of variety of apparel, display, choice, discounts and ease of delivery. Retailers and brands such as Pantaloons, Shoppers Stop, FabIndia, Madame, etc also operate a very active online sales channel and have seen a tremendous increase in the number of orders placed online. Customers can browse through more variety and can easily compare price and quality of merchandise online.

From the retailers point of view, this sales channel offers no or very low real estate cost. The reach of the target group is much larger, accessible across multiple locations and no staff trainings are required.

The most important investment required is in software technology, which can give the audience a comfortable virtual experience, equivalent or better than an instore experience.