As per RedSeer Consulting, a research consultancy firm, online sale of fashion and fashion accessories remained flat for the last financial year where e-commerce businesses spent a conservative amount on marketing and advertisements of its products.
Offline fashion retailer’s growth
The growth rate of online segment’s flattish sale helped the offline players to acquire the lost place at this genre of the business. The growth rate of the offline player in 2016-17 has been recorded as 10-11% whereas organized offline retailers have claimed more than 20% growth in business.
Amazon has grown in the segment
Mrigank Gutgutia who is engagement manager at RedSeer said that, “The horizontal players have lost out in the fashion segment as the marketing and advertising budgets were trimmed over calendar year 2016, though Amazon has marginally grown in the segment owing to continued spends to promote the category”.
Etailers are focused on other classes
Additionally he said that, etailers such as Flipkart are more focused on high GMV categories such as electrical appliances and Mobile phones, and this has led to flat result of the sale of fashion apparels. The share of fashion category has remained at 20-22% for last one and a half years.
Myntra affirms that growth rate is 50% per year
A spokesperson of Myntra said that, “We continue to grow at over 50% year-on-year, which is faster than the industry and consistent with our annual operating plan. We are on track to become profitable by the end of FY18. We will not be able to comment on third-party reports”.
Consumption rate is being cut down
As per a report revealed by the AdEx India which is a division of TAM Media Research, Amazon India remained at being the leading advertiser across offline channels for Q1 of 2017. Well marketing executive said that marketing budget of Flipkart has been cut down by 40% in year 2016 from almost 100 crore per month in year 2015 which is because of the perception to reduce the consumption rate.
Myntra’s plans for sale
Flipkart is striking ahead with spending on digital marketing channels for the sale event contrary to what Myntra revealed that it has plan to focus on full-price sales with little or no discounts and more focused on introducing of new brands and collections.
About Amazon’s spend
An aggregate spends of Amazon Fashion are not available yet the experts says that it is aggressively striking ahead with outdoor campaigns and above-the-line advertising.
Vasanth talks about previous year growth and effect of demonetizsation
Vasanth Kumar who is an executive director at Lifestyle International Max Retail Division said that, “Organised retail in fashion has traditionally grown at 20% year-on-year, though in FY 2017, this applied across premium and value categories. In previous years, premium segments were under pressure. The effect of demonetisation on cash-on-delivery orders and the control on discounting by online players has led to a limited growth for online”.
Voonik claims a continous growth
Sujayath Ali, CEO of Voonik, said that, “While similar factors have hit the standalone vertical fashion players as well, the growth momentum is likely to continue. We are on track to register y-o-y growth of 100%. Though demonetisation had set back the business till February, the customer acquisition costs have gone down to one-third since last year. The growth in apparel will continue with the verticals and better connectivity through Jio might have a significant role to play in it”.