E-commerce giants Flipkart, Amazon deepen fashion push in smaller cities

Flipkart's ethnic wear and Amazon's Serve store are driving fashion growth in Tier 2 and 3 cities with rising Gen Z demand and expanding customer bases

India’s leading e-commerce players, Flipkart and Amazon, are deepening their push into the fashion segment, with a sharp focus on smaller cities and towns. Flipkart reported more than six million unique customers purchasing ethnic wear in the past year, with nearly 90 per cent of sales driven by repeat buyers. Over half of that shopper volume came from Tier 3 and smaller towns.

 

Demographically, the core audience remains young, with nearly half of Flipkart’s ethnic wear buyers aged between 25 and 35. This reflects not only growing digital adoption across regions but also evolving fashion preferences among young Indian consumers.

 

“At Flipkart, we’re witnessing remarkable growth in the ethnic wear category, especially in sarees and kurtas, which are resonating strongly with customers across India,” said Kunal Gupta, vice-president, Flipkart Fashion. “Ethnic fashion has emerged as a key gateway for new shoppers, particularly from Tier 2 and Tier 3 cities, where traditional style requirements meet the convenience of online shopping.”

 

He said this segment is not only driving a significant share of new customer acquisition but also reflecting the deep cultural preferences of a diverse consumer base. According to recent reports, as of 2024, the Indian ethnic wear market was valued at approximately $197.2 billion and is projected to reach $558.5 billion by 2033. With an expanding base of digital shoppers and a resurgence of cultural pride, the category continues to be a significant contributor to the country’s apparel market. 

 

For Flipkart, everyday ethnic wear is witnessing robust growth across regions, with cities like Bengaluru, New Delhi, Kolkata, Hyderabad, Patna, Lucknow, Chennai, Pune, Mumbai, and Guwahati emerging as key demand centres for non-festive ethnic fashion. When it comes to buyer behaviour, 65 per cent of purchases in the women’s ethnic segment are made by women shoppers, while in men’s ethnic wear, 88 per cent of transactions are driven by male shoppers. This category is also experiencing significant momentum in Tier 3 and smaller towns, which now contribute to 55 per cent of overall shopper volume, highlighting the widespread appeal of accessible and affordable ethnic styles.

 

Consumers largely purchase ethnic apparel for everyday use, professional settings, academic environments, religious festivals, and weddings. Sales typically peak during India’s festive season, spanning August through November, and see a second surge during the wedding periods from November to February and again in April and May.

 

Amazon Fashion, meanwhile, has rebranded its Gen Z-focused store as “Serve,” aiming to offer trend-forward fashion across India. The company said it has seen more than 40 per cent year-on-year growth in Tier 2 and 3 markets.

 

Serve, the online store, has seen a threefold increase in Gen Z customers and a fourfold surge in shoppers from cities like Chandigarh, Kochi, Patna, Nagpur, Jaipur, and Surat.

 

It offers a selection of over two million products from more than 350 domestic and global brands, including new additions like Barcino, Tokyo Talkies, Highlander, The Bear House, Diljit x Levi’s, Mokobara, Casio, Chumbak, Cosrx, and Moxie.

 

“After pioneering India’s first dedicated Gen Z store in 2023, we are elevating our commitment with ‘Serve’,” said Nikhil Sinha, director, Amazon Fashion India. “Our research consistently reveals this demographic values individuality and trend alignment alongside affordability. With ‘Serve’, we are democratising trend-forward fashion—bringing inclusive, accessible style to all of India, particularly Tier 2 and 3 cities where we have seen over 40 per cent year-on-year growth.”