Consumers start logging on to online discount portals retailing high-end fashion wear
Preeti Sethi, a Mumbai-based event manager and image consultant, has been on a shopping spree for a couple of months now. Exclusive high-end designer brands that are usually not available at retail outlets in the country have become part of her wardrobe. Giorgio Armani, Christian Dior, Prada, Diesel, Ed Hardy — the list of premium apparel, cosmetics, footwear and accessories that Sethi owns is still growing.
“The best part is that I haven’t burned a hole in my pocket to buy these fashion lines. All were bought at 30-50 per cent discount, and purchased online,” she points out. Sethi was quick to register herself on no less than three online shopping sites that offer merchandise at marked-down rates. Not only does she use each of the sites regularly, she also gets to evaluate her purchases before actually paying for any item.
Sethi is not alone. Internet has created an avenue for many consumers like her to experience quality that was hitherto unaffordable. In the next five years, India would have achieved 15-18 per cent internet penetration, that is 180-200 million internet users (according to estimates by industry body Internet & Mobile Association of India). And, that is a consumer pool that Indian e-marketers are trying to channelise.
A new world where everyone is learning
But online boutiques have to contend with the fact that e-commerce is still in its nascent stage in India. The segment did start off at around the same time the retail revolution took place, but still looks dwarfed at $1.4 billion, against the $350-billion Indian retail sector. On the other hand, consumers in developed markets have been participating in private and sample sales for a long time.(Click for graph)
Still, despite the concept’s recent origin in India, the potential is immense in the country. Take for instance, Fashion and You — an online portal that brings luxury and designer brands at up to 70 per cent less than retail prices. From its launch early this year, Fashion and You has grown its user base to around half a million registered users, and now ships 1,000 orders a day.
Fashion and You CEO Pearl Uppal says: “In the early days of e-commerce, fashion brands were hesitant about selling online for two main reasons: Fear that online distribution would dilute exclusivity and suspicion that consumers would never buy luxury fashion they weren’t able to physically try on. And yet, today, apparel and footwear sell the fastest on our site, in addition to luxury watches and jewellery.”
Sites like 99labels.com, fashionandyou.com and theprivatesales.com have proved that the Indian consumer is ready to experiment with e-shopping. But a few tweaks here and there are still required. Ishita Swarup, CEO of 99Labels, decided to focus on merchandise that would appeal women after she realised they dominated the website’s 100,000-plus user base. “We have even introduced a cash-on-delivery mode to tide over the (constraint due to) low usage of credit cards.”
Today, the site ships around 500 items a day and Swarup has even invested in revamping the site’s look to make it more user-friendly and interactive, and easier to navigate for its wide member base. A special sales calendar lists all the current and upcoming sales for easy viewing and reference.
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WHAT MADE FASHION CLICK ONLINE |
So, is it cheaper and better online?
E-commerce players can offer consumers heavy discounts, as most of the websites don’t have to bear any overheads associated with brick-and-mortar set-ups. Also, they have no inventory of their own and can, thus, work profitably on leaner profit margins. Besides, to start as an e-commerce store, an investment of about Rs 5-10 lakh is all that is needed to get the website running. No wonder the e-commerce model in retailing high-end fashion lines is being replicated across the country.
Bangalore-based theprivatesales.com ensures every member is notified through an ongoing e-mail campaign in which an in-depth overview of the product line to be showcased during the sale is presented through images and text descriptions. “The merchandise available for members is 100 per cent original and backed by the company with an iron-clad guarantee. There are no factory seconds, manufacturing rejects or returned merchandise in the daily product line-up,” claims Jitendra Gautam, general manager (marketing), The Private Sales. Launched just two months ago, the site now counts over 100,000 users as members who get exclusive access to over 175 European lifestyle brands and fashion designers.
NRI customers of theprivatesales.com use the site to send discounted designer gifts to their family and friends in India. According to Gautam: “We expect to ship large volumes of merchandise during Diwali and the wedding season.
| PRÊT-À-PORTER: FASHION VICTIMS CLICK ONLINE TO GET THE BEST DEAL | |
| E-commerce portals | Registered user base |
| Fashion and You | Half a million |
| 99Labels | Over 100,000 |
| The Private Sales | 180,000 |
| BrandMile | NA |
” Indian designers need to log on...
Building a strong online sales channel is often vital to the success of an emerging fashion business. But, because the task can seem daunting, many young designers delay developing their own e-commerce sites and, instead, outsource their internet sales to online retailers.
“Designers can present their collections directly to customers and they can save money on advertising (shooting catalogues) — a crucial consideration since most fashion houses have trimmed their marketing budgets,” says Payal Singhal, a leading fashion designer. She has seen quick sell-outs for her collection on www.exclusively.in, a website that retails Indian fashion, travel and home decor brands to western customers. Singhal, who is also contemplating an e-commerce portal of her own to retail directly to customers in the US and UK, adds online sales is the fastest way to grow your customer base and also the cheapest route to retail.
Fashionandyou.com has joined forces with Lakme Fashion Week (LFW) and has introduced two exclusive retail lines – ‘Launch My Line’ and ‘LFW Pret Collection’ – from the Indian designers on the portal. Sujal Shah, vice-president and head of fashion, International Management Group India, says: “By collaborating with Fashion and You, we are taking the lead to embrace the future and reality of business in India, which is online, and provide a direct sales channel for all LFW designers.”
But, for the moment, online retailers may be better off focusing their efforts on delivering the best possible service. “We need to continue focusing on taking the pain and cost out of delivery and returns. This is an area where work is always ‘in progress’,” says Uppal of Fashion and You.
Others, like 99Labels, claim that sold items can be returned by customers if they are received in a damaged condition or inaccurate size. “Being an online shopping portal, goods return and delivery measures are critical in establishing the site’s credibility,” argues Swarup.
