How India’s D2C Fashion Brands Are Building Scalable Business Models to Capture A $43 Bn Market Opportunity

October 26, 2021

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With the advancement of the genres and upcoming fashion styles, the fashion industry is growing to its pinnacle compared to any other sector. The partial shift from hand-made stitching to machine-based stitching in the fashion world has changed the audience’s mindset.

As per the 2015 survey, the Indian Fashion market has reached $41Bn, and by 2020 it touched $67Bn. As per Business Advisory firm, Wazir Advisors with the growth of machine use and other technologies, the expected target to reach by 2025 is $107Bn.

Interestingly, the trending online or digital platform has made direct-to-consumer (D2C) facilities more accessible and reliable for easy and quick shopping. This helps them attract their targeted audience or another crowd suitably to flourish the market with their respective brand and make a massive profit out of it. It is estimated that online marketing is far easier and cheaper than offline ones.

In August 2011, Yepme, a Gurugram-based fashion brand, was the first to set an online Business model to bring the audience under one umbrella by targeting Tier2 and Tier 3 cities where such brands hardly have any store of it.

By December 2011, Koovs also got entangled with the fashion brand and set the business as the deal site to catch the audience’s eyes.

With time, other famous brands approached the online platform to reach every individual qualitatively and quantitatively. Biba in 2014 made its way to the digital platform to get a good turnover out of it and touch the heart of the buyer with a single click.

Reliance Retail in 2016 followed the path and made its online store named AJIO. With the unexpected growth of the fashion market and its market capture, the estimated target is to reach $43Bn by 2025.

Approximately 33% of the market is covered by online marketing, and it is assumed that by 2025 50% of the call will be under the umbrella of digital infrastructure.

Future Brand Vision

As per Mumbai-based financial services firm, Avendus there are more than 100 online fashion stores that give an idea of how big the competition is all about in the online market and how efficiently they are trying to build the online market with the help of technologies.

The brand needs to be focused and prepared to change the services, terms, and conditions as per the need of the time. The Pandemic in 2020 has forced many offline marketers to shift online for their survival. The unexpected situations or calamities give a different scenario to the fashion market.

The brands deal in coupons and rewards to retain the customer and get connected to them. The influencer’s live streaming of the brands helps the customers hold it for future marketing. The brand representative influences the audience and sticks to the same brand out of trust and loyalty. This helps in customer engagement and having fun in knowing more about the fashion and the relatable brands.

The strategies that the Bewakoof fashion brand has used are remarkable. It gives limited time to grab the offers and make the customers look at the brand constantly. Online submissions are more convenient and easier to access than offline ones. The company’s turnover increased by 28% with such strategies and touched 164 Cr in Indian currency.

Lately, the company has taken its hand in beauty and care products to capture the market with its soothing norms and policies.

The only thing that matters the most to retain relationships online or offline is trust, and the trust between the buyer and seller should be outstanding and commendable. The trust issues as faced by Mellora, which deals in Jewelry, have shifted its business models from traditional ways to asset-light zero-inventory models and used 3D printing technology to make it more attractive and innovative.

The product innovation grabs the market more quickly and finely as the customer needs to get the trending items and number one brand products in their hand.

Owners Confidence to tackle the brand

The investors’ confidence matters a lot to invest in the brand, which will make the market and the products flourish in it. The story of Zivame is very close to us as the owner sometimes feels less confident of the acceptance of their work. The mindset and social pressure may be one of the reasons for keeping in mind which work is acceptable and which is not. Despite all such fear and ups and downs, the brand has made its way to touch many hearts and helped, especially girls, to get the best lingerie out of it.

Zivame changed the people’s mindset and helped them discuss innerwear, which was once a taboo in society. The girls are now free to make a choice and make the decision regarding the right lingerie, which makes them comfortable.

Brands Perception and its Value

The audience’s fear is more of getting proper eyewear, and a slight difference in eyewear will trouble the user in terms of their far sight or near sight. Lenskart came with an eye check-up and 3D try-on facilities to select the best frame for the customers to resolve such issues.

Lenskart changed the perception of the people and made the things available to them online. It helps in increasing the value of the brand and its worth too. As per the survey, the company’s revenue was approximately Rs.38 Cr by 2014.

The end-point of the brand products

To conclude the article, the foremost thing to point out is the demand and supply of the particular product and its brand. Despite all the challenges and ups and downs, the brand had made its name in the mind of every targeted audience and proved it worth using and valuable.

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