Only 4% rely on online platforms for clothes: How Indians shop apparel

Despite a pandemic-driven online shopping surge, physical stores remain dominant A survey by Localcircles revealed that only 4 per cent rely solely on online platforms while 47 per cent  of respondents prefer to shop exclusively in stores (malls, markets) for the "touch, feel, and try" experience. About 40 per cent enjoy a mix of online and offline shopping.

Discounts and ease of return are key drivers for online purchases.  What the study finds is that though the pandemic led to increased adoption of buying apparel online, once again the physical stores/ markets are being preferred by people for buying clothes. 81% of respondents said the key reasons for preferring to buy clothes online is the ability to touch, feel and try them before finalizing their purchase. Other major reasons are ability to make a quick buy and take it home, ease of exchange and return or in all convenience in many respects. 

They survey received over 35,000 responses from consumers located in 323 districts of India. 61% were men while 39% respondents were women. 43% respondents were from tier 1, 33% from tier 2 and 24% respondents were from tier 3, 4 & rural districts.

In community discussions, many consumers indicated that they purchase products they go online for repeat purchases of branded products as the fit and quality are already known, and they tend to make first time purchases at a store. Whether the online platforms that sell clothing online be able to deliver faster and provide a better buying and return experience will determine whether more consumers make online platforms as their primary channel to buy clothing. 

With convenience fee to order online and other charges like delivery and in some cases even a return fee being levied by some platforms, there currently are barriers that work against the growth of the apparel industry online. Unless the discounts offered stay high,  which they have been in the last few years, there is a high chance that online apparel buying will stagnate or see slow growth in India. 

Market size and consumer preferences:

The Indian apparel market is expected to reach a staggering Rs 9.35 lakh crore (USD 105.5 billion) in 2024. Women's apparel holds the lion's share, at US$51.05 billion.

Consumers seek a balance of value, quality, fashion, and self-expression, influenced by social media trends.

Urban Gen Z shoppers are particularly drawn to fast-fashion brands that keep pace with runway styles.

"The increasing access to digital devices and internet is enabling masses to have an online shopping experience irrespective of whether they are living in urban or rural areas. The online shopping experience has started to provide a rich, immersive, and personalised shopping experience to a customer, and this is a major reason which is driving growth. However, as compared to the overall apparel sales, the online sales still continue to be a high single digit percentage," noted the study. 

Why people shop clothes online
 

Discounts: The biggest reason (37%) people choose online shopping is to get better deals and discounts.
 

Easy returns and exchange: Another major advantage (29%) is the ease of exchanging or returning clothes that don't fit or aren't what they expected. This eliminates the hassle of going back to the store.
 

Wider selection: Online stores often offer a larger variety of choices compared to individual physical stores (26%).

Why people prefer offline stores

Trying before you Buy: The overwhelming reason (81%) for preferring physical stores is the ability to touch, feel, and try on clothes before purchasing. This ensures a better fit and avoids the risk of getting clothes that don't look good.

More selection (for some): Interestingly, 44% of those who prefer stores also mentioned a wider selection, which might indicate a perception that online stores lack variety in some categories.