Amazon registers 40% YoY growth in fashion category in FY21
E-commerce giant Amazon reported 40 per cent year-on-year (YoY) growth in its fashion category in the financial year 2020-21. The fashion industry had “re-strategised” among COVID-19 curfews and lockdowns that pushed customers towards ordering products online. Amazon added that 65 per cent of overall demand appeared from tier 2, 3, and 4 regions.
Srivastava added that the fashion sector had to re-strategize amidst the COVID-19 pandemic. “From not restricting themselves to specific seasons to preferring comfort along with style and showing a tendency towards sustainable and eco-friendly fashion, consumers are making conscious changes to their shopping habits,” Srivastava explained.
Due to COVID-19 induced lockdown and other curbs, the dress sector suffered crucially as stores were shut. Many retailers moved online in order to sell their stock. During the pandemic consumer demand also shifted as more and more people bought casual wear online. As a result of these factors, online sales increased greatly.
Overall order volumes in the fashion category increased by 45% in FY21. This included orders across marketplaces as well as brand websites.
The report added that in the country’s smaller cities, online shopping was gaining fame. It further mentioned that 118% volume growth had come from tier-2 cities, 192% from tier-3 cities of India.
Amazon has reported similar trends for the fashion category. The firm reported increased penetration and coverage of online shopping in tier-2 and tier-3 cities. “The top cities include Bengaluru, Mumbai, Pune, Hyderabad, Kanchipuram, Gurgaon, Chennai, Kolkata, Ahmedabad, and Lucknow among others,” said Srivastava.