In India, online marketplaces such as Amazon, Flipkart or Jabong are turning more and more consumers into digital shoppers. The value proposition of these players, based on attractive prices, convenience, and choice is answering the needs of a widening base of customers. So much so that in 2014, only a few years after their entry into the Indian market, online sales of apparel reached a record Rs. 3,200 crores.
Not only is India’s base of digital consumers expanding in size, but it is also expanding in breadth. Early adopters of digital channels were initially concentrated in big metros, but as smartphone penetration increased and marketplaces strengthened their logistics capabilities, online shopping has become a pan-India phenomenon.
Today, online apparel shoppers live in more diverse locations - including many Tier II and III cities, resulting in the dispersed set of e-retail hotspots shown on the map.
With consumers going digital in new geographies, brick and mortar apparel retailers should look at their store footprint and answer two important questions:
- How exposed is our business to consumers’ shift to digital?
- Could our business hit new demand hotspots through digital channels?
To obtain insights on these questions, our team took a sample of leading apparel retailers and compared their store locations to India’s top hotspots for buying apparel online.