A report by Bain & Company and TMRW House of Brands said that the online fashion market is expected to see significant growth in the five years. According to the report, the market is expected reach the size of $35 billion.
The report noted that the digital disruptor brands are projected to outpace online fashion market growth. It said the annual growth of such brands will be 35% which would help them reach $10 billion by FY28.
Commenting on the findings of the report, Radhika Sridharan, Partner, Bain & Company, “Young customers, especially Gen Z, have a greater propensity to try and buy these brands. Digital disruptors are targeted under-served niches of the market, with brand values to speak to their customers’ needs, including confidence, fun and self-expression.
The findings of the report show that 70-80% of the traffic to digital disruptors originates from these segments, with Gen Z accounting for 30–35 per cent and Millennials for 40–45 per cent of the total traffic.
According to the report, a stark difference is seen between the shopping patterns of 18-24 year old consumers and 45+ population. The data says that 24 per cent of the consumers in the former age bracket buy from digital disruptors. However, the number drops to 13% for 45+ year old consumers.
On the trends, Prashanth Aluru, CEO & Co-founder, TMRW House of Brands, said, “The next set of digital disruptors in the fashion and lifestyle space will be co-created with the customers. Gen Z customers are interested in a lot more than just the product and purchase experience. They like to associate with brands with a vision and purpose that aligns with theirs."