“Fashion business is driving the growth of Flipkart”

The fashion e-commerce segment was valued at around $4.8 billion in India in 2020, and this figure increased to around $9 billion in 2021.”

The fashion e-commerce segment was valued at around $4.8 billion in India in 2020, and this figure increased to around $9 billion in 2021.”

The “fashion industry” is driving Flipkart’s growth, attracting nearly 45-50% of new customers to the e-commerce giant, according to a senior company official.

“Fashion is the most interesting part of flipkart because it’s like the engine of the business. The reason we call it an engine is because that’s where our customers first transact with us,” said Sandeep Karwa, Vice President of Flipkart Fashion. The Hindu.

Mr. Karwa added that fashion as a business attracts about 45-50% of customers to Flipkart, compared to 30-35% a few years ago. “So if during the month we acquire, say, 100 customers, 45-50 of those customers are going to be transacting for the first time in fashion…and that’s true for the entire commerce industry as well. electronic”.

From a price point of view, fashion is an entry-level purchase and hence people may make their first e-commerce transaction in this category.

“It is the most important activity for the company. It is also an activity where the potential is still the greatest. I can certainly tell you that as a company we [fashion] are definitely growing faster than the platform and we’re happy about that because what we’re doing here is really going to come back and help all the other businesses on the platform,” Karaw added.

During the Spring/Summer 2022 season, the Walmart-owned e-commerce company recorded sales of more than 200 million fashion products across nearly 19,200 PIN codes and saw the participation of nearly 175,000 sellers of fashion. Customers bought products from all over the country including cities like Ranchi, Ernakulam, Kanpur, Medinipur and Cuttack.

Mr. Karwa added that as a result of the pandemic, consumers not only shifted from offline to online for their shopping needs, but they were shopping in completely different categories. For example, while some of the traditional categories saw a downturn, new categories such as athleisure, sweatpants, shorts, and the entire loungewear verticals saw a “massive explosion.”

He further added that the company is seeing phenomenal growth in categories such as sarees (102% growth last year) and footwear, especially in Tier 2 and 3 regions, mainly driven by the value.

“Similarly, as people return to the office and resume their outdoor activities, we are seeing an increasing demand for formal wear and sportswear not only in metropolitan areas, but also in T2+ regions. Overall growth in T2+ regions is over 80%, year-over-year,” he said.

Mr Karwa added that customization is currently “the biggest talking point inside Flipkart”. “We make most of our investments in personalization. When a consumer launches the Flipkart app and we have a history of that customer based on buying habits…we are able to give that consumer a score and based on that score we are able to show a certain set of products. consumer. Even if two people search for the same product, they will see different results,” he explained.

He added, however, that personalization will be an ongoing journey as the company’s technology models form and evolve.

The company also plans to leverage “behavioral science” to improve the personalization experience for consumers. “Shopping and emotions are correlated. A lot of purchases are made based on the emotion the customer feels when they start shopping… that level of personalization is what we would like to achieve as a platform… there’s a long way to go but it’s is how we think about it.”

The fashion e-commerce segment was valued at around $4.8 billion in India in 2020, and that figure increased to around $9 billion in 2021. “We are very happy to have been able to take the share of the lion of all this cake and really changing the trajectory of our growth… the trend continues despite the offline reopening. The data currently tells us that much of this growth is here to stay… Previously if a user spent for example ₹1000 in mode on Flipkart and ₹3000 in an offline setup… now the user spends around ₹2,500 in Flipkart,” he said.

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