How Indian Fashion Brands D2C Seize The $ 43 Billion Opportunity
Online fashion market expected to reach $ 43.2 billion by 2025
Lenskart led D2C fashion brands with turnover of 963.7 Cr INR in fiscal year 2020
Apparel and footwear category is expected to dominate the D2C fashion market, contributing around 77.1% by 2025.
The recent outbreak of the Covid-19 pandemic has hit the traditional retail industry hard, making brands aware of the importance of moving to a digital first, direct to consumer (D2C) model. Many segments of the industry have already embraced this digital transformation, but the fashion world has perhaps witnessed the biggest change.
Despite the lack of touch and feel in the days of strict social distancing, fashion retailers have been pushing their products online and seeing some great deals. But that didn’t happen without the technological advantage. AR / VR and machine learning have been widely used for product visualization and virtual adjustment. Return policies have been relaxed to give customers a much needed window. Even digital fashion weeks and virtual catwalks have taken off slightly, although major global brands have refrained from showcasing their most eye-catching collections. But a trend is pretty clear even amid the pandemic chaos. The online fashion market is on the rise due to a major shift in consumer behavior, primarily triggered by security concerns and rapidly changing foreclosure policies during the second wave of Covid-19.
Interestingly, fashion has the highest potential among all the segments contributing to the D2C market. It will account for 43% of the $ 100 billion D2C market opportunity by 2025, according to a recent release from Inc42 More titled The Rise Of India’s D2C: Market Landscape And Trends Report, 2021.
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The Fashion D2C segment is not only the leader in terms of potential, but also attracts the interest of investors. It raised the highest funding of $ 756 million among any D2C segment in India, followed by FMCG & Home Decor.
Which fashion brand D2C dominates the Indian market
Popular eyewear brand Lenskart led the Fashion D2C brands with a turnover of 963.7 Cr INR in FY20. The company was in the dark in FY20 and recorded a profit of INR 17.7 Cr. The eyewear retailer currently operates 700 stores in India, claims to serve over 400,000 customers per month and claims it accounts for nearly 30% of the organized eyewear market in India. He joined the coveted Unicorn Club in FY20 after raising INR 1,645 Cr ($ 231 M) of SoftBank Vision Fund II, Lightbulb Ltd. as part of its Series G funding.
The way forward for D2C fashion brands in India
The clothing and footwear category is expected to dominate the D2C fashion market, accounting for nearly 77.1% of the total market by 2025. The focus on sustainability, technological integration (AI, AR / VR, ML and more), increasing personalization, omnichannel business model, promoting social awareness and leveraging influencer and marketing marketing. content are some of the emerging trends among Fashion D2C brands in India.
To learn more about trends in the D2C fashion industry, download the full report.
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