India’s huge consumer response to e-commerce

Global brands go online-first


Picking up on India’s huge consumer response to e-commerce, international fashion and lifestyle brands are launching products on the Internet to access more consumers

MUMBAI: India’s huge consumer numbers are looking very attractive to international brands, especially in the fashion and lifestyle spaces. The massive growth of e-commerce has enabled an easier entry through an online-first launch.


Indian consumers have a strong tilt towards fashion brands and global trends, which attracted British brand River Island in via e-commerce. Josie Roscop, River Island’s marketing director, said: “Through the e-commerce platform, we want to make our brand accessible to a larger audience.”
Besides easier access to consumers in the metros and in tiers II and III cities, for international brands that have made online-first entries into India, getting to upper-class and fashion conscious consumers wherever they reside is now possible without having to incur heavy costs. Established portals such as Flipkart, Jabong, Myntra, Fabfurnish, Fashionandyou offer significant benefits to such brands.

“E-commerce is creating a lucrative market for brands looking for ways to increase customer engagement,” said Michael Adnani, VP retail and head - brand alliances, Flipkart.

Besides reach, such sites offer the brands consumer information and data. According to Adnani, if an international brand launches with Flipkart, for example, they get access to a large customer base and relevant data around their shopping preferences and market trends. “The market intelligence we provide helps them position and launch their products far more effectively. And that too at a fraction of the cost they would incur on conventional retail.”
You need to look at the big picture,” said Arun Chandra Mohan, CEO and co-founder, Jabong.com. “Real estate is expensive and the number of malls available is very limited. E-commerce can provide the right environment and a pan-India reach.”

For many i nter national brands, the data access in the online-first route is also very useful when they want to launch their brick and mortar model.

Fashionandyou. com has launched a Luxury Lounge to offer brands such as Tory Burch, Versace, Aston Martin and Coach, otherwise not easily available offline in India. “We cater to those brands that are not in India or have no plans to enter India for the next few years,” says Ashish Mediratta, CEO, Fashionandyou.com.

While international brands such as Dorothy Perkins, Miss Selfridges and River Island have gone for online-first launches, brands such as Mango and Aldo, already in India for some time in a brick and mortar presence, are taking the online route to tap markets beyond metros.

“After opening stores in the metros, brands often don’t find it viable to open stores in tier II cities. Online takes care of that,” said Nitin Chabbra, CEO, Ace Turtle, a Bangalore-based managed e-commerce solutions company that has associated with Myntra and Flipkart to bring in international brands looking for an online-first entry.

Adnani commented on another attractive reason for the online-first approach: “Exclusive associations play a very significant role as they help us create brand recall amongst customers.”

Besides apparel, the furniture and home décor market is also thriving online. International brands Stoelzle, WMF, Noritake, Bohemia Crystal, Axum and Narumi have come in through fabfurnsh.com. It is quite difficult for them to find the large space required for a furniture retail store.

“More brands are feeling that the Internet is an integral part of their strategy,” says Vikram Chopra, CEO and founder, Fabfurnish.com.

1 comment:

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