Home Fashion Industry Financial Amazon Reports 40% YoY Growth in Fashion Category in FY21

Amazon Reports 40% YoY Growth in Fashion Category in FY21


E-commerce giant Amazon saw 40% year-over-year growth in its fashion category in fiscal year 2020-21. The company said the fashion industry has “reshuffled its strategy” amid COVID-19 curfews and closures that have prompted customers to order products online. Amazon added that 65% of overall demand came from Tier 2, 3, and 4 regions.

Fashion and beauty are among the most important categories for Amazon in India and also the fastest growing category in terms of new customer acquisition for Amazon India, as one in three new customers begins their journey. ‘buying with Amazon Fashion, “Saurabh Srivastava, director and head, Amazon Fashion India, told Mint.

Srivastava added that the fashion industry has had to rethink its strategy amid the COVID-19 pandemic. He said the future of fashion should be more flexible. “From not limiting themselves to specific seasons to preferring comfort over style and showing an inclination for sustainable and environmentally friendly fashion, consumers are consciously changing their shopping habits,” Srivastava explained.

Due to the COVID-19-induced lockdown and other restrictions, the clothing industry has suffered significantly from store closures. Many retailers have moved online to sell their inventory. During the pandemic, consumer demand also changed as more people purchased casual clothing online. Due to these factors, online sales have increased sharply.

Overall order volumes in the fashion category increased by 45% in FY21. This included orders in marketplaces as well as on branded websites, according to a recent report on the Online Fashion Market by Unicommerce.

The report added that in small towns across the country, online shopping is gaining in importance. He further mentioned that the volume growth of 118% came from Tier 2 cities, 192% from Tier 3 cities in India.

Amazon reported similar trends for the fashion category. The company reported increased penetration and coverage of online shopping in Tier 2 and Tier 3 cities. “The main cities are Bengaluru, Mumbai, Pune, Hyderabad, Kanchipuram, Gurgaon, Chennai, Kolkata, Ahmedabad and Lucknow, among others, ”Srivastava said.

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