Value E-Commerce: A $40 Billion Opportunity
Business Of Fashion|August 2021
As India’s retail industry evolves, a growing number of value-conscious online shoppers are reshaping India’s e-commerce landscape. Currently valued at US$4 billion, value e-commerce is expected to grow rapidly to reach US$20 billion by 2026 and US$40 billion by 2030, marking a 10X growth in 10 years.
Value E-Commerce: A $40 Billion Opportunity

From a consumer’s perspective, ‘value’ means finding affordable products while also getting acceptable quality, durability and trendiness. The typical Indian consumer has always been value conscious, and much of overall demand is for affordable, smallerticket items. Global consulting firm Kearney, through its report titled ‘Value e-commerce: The Next Big Leap in India’s Retail Market’, outlines a US$40 billion market opportunity that is shaping up as India’s value-conscious buyers go online. The report states that “Value e-commerce will emerge as the biggest growth opportunity within lifestyle retail with 10X growth in 10 years.”

The Value Lifestyle Segment

The lifestyle retail market is divided into six price tiers. The bottom three — mass, economy, and masstige — are the value lifestyle segment, and the top three are the premium lifestyle segment. Currently, about 70 per cent of lifestyle retail demand comes from the value lifestyle segment, which is dominated by unorganised general trade (nearly 80 per cent share). Modern trade accounts for 16 per cent, and e-commerce has a low penetration at 4 per cent. In contrast, the premium lifestyle retail has a much higher share of modern brick-and-mortar stores (40 to 45 per cent) with 10 per cent e-commerce penetration as of 2019. While multiple global and Indian brands and retailers with a presence in India’s top 100 cities bring the trendiest products to these consumers, those consumers in the rest of India also aspire to get similar trendy products, but at much lower prices.

This story is from the August 2021 edition of Business Of Fashion.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the August 2021 edition of Business Of Fashion.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM BUSINESS OF FASHIONView All
ISSEY MIYAKE - Fusing Fashion & Technology to Create Harmonic Garments
Business Of Fashion

ISSEY MIYAKE - Fusing Fashion & Technology to Create Harmonic Garments

Issey Miyake studied at the Tama Art University in Tokyo, where he majored in Graphic Design. This is where his fusion of science and fashion was born from, incorporating the mathematics and technical skills of a graphic designer into his clothing...

time-read
3 mins  |
March 2024
INDIA BRAND SHOW 2024 UNVEILS SPRING/SUMMER 24 COLLECTIONS
Business Of Fashion

INDIA BRAND SHOW 2024 UNVEILS SPRING/SUMMER 24 COLLECTIONS

The India Fashion Forum 2024 set the stage for a showcase of Spring/Summer 24 collections, highlighting the creativity and innovation of India's prominent fashion and lifestyle brands. Against the backdrop of a sophisticated setting, the runway became a platform for unveiling the latest trends in the industry.

time-read
4 mins  |
March 2024
IMAGES FASHION AWARDS 2024 - Fashion Retail Brands Honoured for Innovation, Excellence at IFF 2024
Business Of Fashion

IMAGES FASHION AWARDS 2024 - Fashion Retail Brands Honoured for Innovation, Excellence at IFF 2024

The 23rd IFF culminated in a gala event in the form of the IMAGES Fashion Awards (IFA) celebrating excellence in the field of fashion retail. The awards were a venerable gathering of the who's who of the industry in the country...

time-read
2 mins  |
March 2024
THE FUTURE OF RETAIL EXPERIENCE IS A MÉLANGE OF ALL CHANNELS
Business Of Fashion

THE FUTURE OF RETAIL EXPERIENCE IS A MÉLANGE OF ALL CHANNELS

There was a time when retail was only about the product. If you had a great product, the customer would buy it. But over a period of time, technology evolved, the online space grew and with this came the age of convenience.

time-read
7 mins  |
March 2024
WINNING CONSUMERS AT SCALE: BALANCING AI & HUMAN TOUCH IN FASHION
Business Of Fashion

WINNING CONSUMERS AT SCALE: BALANCING AI & HUMAN TOUCH IN FASHION

In today's rapidly evolving fashion landscape, the ability to swiftly and accurately discern consumer preferences is paramount.

time-read
3 mins  |
March 2024
OMNICHANNEL STRATEGIES FUTURE-PROOFING FASHION: Prateek Mahajan, Director Operations, Unicommerce
Business Of Fashion

OMNICHANNEL STRATEGIES FUTURE-PROOFING FASHION: Prateek Mahajan, Director Operations, Unicommerce

Unicommerce helps brands achieve a cohesive experience across channels including across web stores, physical stores and marketplaces, says Mahajan

time-read
4 mins  |
March 2024
RESILIENCE IN VOGUE: NAVIGATING ECONOMIC STORMS IN FASHION
Business Of Fashion

RESILIENCE IN VOGUE: NAVIGATING ECONOMIC STORMS IN FASHION

Manas Singh, Head D2C E-Commerce Business, PUMA Group & Anshuman Aggarwal Co-Founder Increff spoke on adaptation in times of downturn, and the future of fashion retail...

time-read
5 mins  |
March 2024
'LET'S MAKE THE BUSINESS OF FASHION GREAT AGAIN'
Business Of Fashion

'LET'S MAKE THE BUSINESS OF FASHION GREAT AGAIN'

These are transformative times for the business of fashion. Consumer behaviours, digitalisation, discounting impact, supply chain snags and sustainability demands are challenging us.

time-read
4 mins  |
March 2024
DIGITAL WILL PROPEL MODERN INDIAN RETAIL: Saloni Nangia, President, Technopak
Business Of Fashion

DIGITAL WILL PROPEL MODERN INDIAN RETAIL: Saloni Nangia, President, Technopak

India's estimated GDP for FY23-24 is about $3.85 trillion and we are slated to reach nearly $10 trillion by 2035 in the next 10 years. Private consumption stands at about 2.27, similar to a lot of other developed nations of the world and this will only grow stronger in the next few years, said Saloni Nangia, President, Technopak India, at India Fashion Forum 2024.

time-read
5 mins  |
March 2024
Driving the Elevation of the Business of Fashion in India to Greatness
Business Of Fashion

Driving the Elevation of the Business of Fashion in India to Greatness

Shailesh Chaturvedi, MD & CEO, Arvind Fashions and Convenor India Fashion Forum 2024

time-read
4 mins  |
March 2024