According to a survey by Rakuten Insight on online shopping behavior in India conducted in June 2022, ** percent of consumers preferred cash on delivery as a payment method for their online purchases. In comparison, ** of consumers used buy now and pay later services for online shopping.

In 2020, ** percent of the cash on delivery orders were returned. This demarks a decrease compared to 2019 by more than **** percent. Similarly, the total returns per forward order have decreased a little by less than **** percent. The returns on prepaid orders have largely remained the same with only *** percent change.

According to the survey by YourLibaas.com conducted between April and June 2020, about ** percent of the respondents stated that it was very important for them to be able to pay by cash on delivery while buying online in India. Cash on delivery as a mode of payment was not at all important only for ***** percent of the respondents.

The share of cash transactions at POS (Point-of-Sale) in India declined by ** percentage points between 2018 and the first quarter of 2025. This is according to two different questions asked throughout multiple surveys from Statista's Consumer Insights. The numbers shown here refer to a rolling 12-month share of respondents who indicated they used cash in a brick and mortar shop or whilst shopping online. In 2018, the share of respondents using cash transactions at POS (Point-of-Sale) stood at ** percent, which declined to ** percent in the first quarter of 2025. Moreover, during the same period, cash on delivery for online transactions fell by ** percentage points. On the other hand, in 2024, the share of respondents paying through cash paid in advance for online payments stayed the same.

Snapshot img

India Online Fashion Retail Market Size 2025-2029

The India online fashion retail market size is forecast to increase by USD 36.01 billion, at a CAGR of 22.2% between 2024 and 2029.

Major Market Trends & Insights

By Product - Apparel segment was valued at USD 8.26 billion in 2022
By Gender - Women segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 314.31 billion
Market Future Opportunities: USD 36.01 billion 
CAGR : 22.2%

Market Summary

The market has witnessed significant growth, fueled by the increasing adoption of digital technologies and the rise in internet and smartphone penetration. According to recent reports, India's online fashion market is projected to reach USD 35 billion by 2025, growing at a steady pace. This expansion is driven by the convenience and accessibility offered by e-commerce platforms, which allow consumers to shop from the comfort of their homes. Moreover, the presence of various payment options, including credit/debit cards, digital wallets, and cash on delivery, has further boosted the market's growth. In contrast, traditional brick-and-mortar stores face challenges such as high rental costs and limited product offerings, making e-commerce an attractive alternative.
The fashion industry's online segment includes various categories, such as apparel, footwear, and accessories, with apparel being the largest and fastest-growing segment. As the market continues to evolve, we can expect to see increased competition, innovative marketing strategies, and personalized shopping experiences.

What will be the size of the India Online Fashion Retail Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

The market exhibits a significant presence in the country's burgeoning e-commerce sector. According to recent estimates, the market currently accounts for over 3% of India's total retail sector, with a growth rate of approximately 25% year-on-year. Looking forward, this figure is projected to reach nearly 5% by 2025. A comparison of key performance indicators reveals that online fashion retailers in India have achieved impressive customer engagement. For instance, the average customer lifetime value stands at INR 25,000, while the conversion rate for mobile commerce reaches 35%. Furthermore, the market's growth is driven by factors such as increasing internet penetration, improving digital infrastructure, and the rising popularity of social commerce.
In terms of competition, players in the online fashion retail space continue to invest in various strategies to differentiate themselves. These include website traffic analysis, customer segmentation models, and personalization algorithms, among others. Despite challenges such as payment processing fees, e-commerce logistics, and returns and exchanges, the market's potential for growth remains strong. In conclusion, the market presents a compelling opportunity for businesses looking to expand their reach and capitalize on the country's growing digital economy. With a projected growth rate of 25% year-on-year and a customer lifetime value of INR 25,000, the market's potential for revenue generation is significant.
Furthermore, the increasing popularity of mobile commerce and social commerce trends underscores the importance of a robust digital presence for fashion retailers.

How is this India Online Fashion Retail Market segmented?

The online fashion retail in India industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Apparel
  Footwear
  Bags and accessories


Gender

  Women
  Men
  Children


Price Range

  Economy
  Mid-Range
  Premium


Platform

  Mobile Apps
  Web Portals


Geography

  APAC

    India

By Product Insights

The apparel segment is estimated to witness significant growth during the forecast period.

In the dynamic and evolving online fashion retail landscape in India, the apparel segment experiences consistent growth. Consumers prioritize fashionable and comfortable clothing, driving retailers to cater to diverse consumer segments. The market encompasses a wide range of clothing categories for men, women, children, and infants. Top wear apparel, including tops, blouses, dresses, casual shirts, formal shirts, T-shirts, sweaters, sweatshirts, tank tops, and vests, currently accounts for a significant market share. Meanwhile, bottom wear, consisting of trousers, jeans, jeggings, pants, shorts, and skirts, also experiences steady demand. Intimates and sleepwear, such as pajamas, bathrobes, shapewear, slips, socks, underwear, and briefs, are essential categories that cater to consumers' daily needs.

Children's and inf

According to a survey by Rakuten Insight on online shopping behavior in India conducted in June 2022, ** percent of female and ** percent of male consumers preferred cash on delivery as a payment method for online shopping. In contrast, ** percent of female and ** percent of male respondents used mobile payment apps for shopping online.

In 2022, the ********** segment of the Indian e-commerce retail market accounted for ** percent of the total market share in India. This was followed by electronics and appliances with a market share of just over ** percent. The internet boom Reliance Retail leads the telecommunication revolution. Supported by its subsidiary, Jio, founded in 2007, which offers very cheap packages for mobile internet and SIM cards. Competitors like Bharti Airtel could hardly keep up, but finally adapted, offering similarly cheap packages. Affordable internet made it attractive for all social groups to explore the possibilities of the World Wide Web. The digitalization of government services through the Indian government’s initiative for a digital India further pushed the usage of the internet in India. From internet user to online shopper The triumphant advance of the internet in India entailed not only a new means of communication but also new opportunities for the market. Alongside the expansion of internet usage, the penetration of online shoppers increased. Although cash-on-delivery was a popular means of payment for online shoppers, digital payment methods expanded. Another expansion was pushed by the coronavirus pandemic in 2020. Due to the nationwide lockdowns, contactless online shopping appeared to be a safe alternative.

In 2023, China had the highest e-commerce penetration in retail in the Asia-Pacific region, with a share of about ** percent. In comparison, India had an e-commerce share in total retail sales of approximately **** percent in 2023. The rise of e-commerce The Asia-Pacific region showed high penetration rates of e-commerce in the past few years. The region appears to be heading in the direction of a cashless society, with cash on delivery being one of the least used e-commerce payment methods. Furthermore, digital wallet usage was by far higher than credit or debit card usages for e-commerce payments. Unsurprisingly, e-wallet usage was forecasted to increase by 2027, which would further tighten e-commerce’s grip on the Asia Pacific retail sector. New ways of commerce The global pandemic had a monumental impact on e-commerce throughout the Asia-Pacific region. Although many industries were negatively affected, it was the shift in the e-commerce industry. Many consumers in the region prefer shopping online over physical stores, as there are more benefits and it is comfortable. As online shopping gained more traction, the industry shifted to different ways of commerce, such as social or live commerce, to continue to keep consumers on the hook.

The majority of payments across various sectors in India were done through UPI (Unified Payment Interface) during financial year 2023. Moreover, UPI accounted for ** percent of the transactional value for the online retail sector in the same period.

Mobile wallet penetration was much higher in Asia than in Europe, with countries like India (**** percent) and Indonesia (**** percent) outranking Sweden. This is according to consumer survey results from late 2023. It reveals that the market size of mobile wallets is much higher in emerging countries than in North America or Europe, as wallets are often the first digital payment method to gain widespread acceptance in Asia or the Middle East. Mobile wallets in Europe and North America compete against existing digital payment systems such as credit cards or debit cards. POS vs. e-commerce Are wallets preferred in physical stores or in online shopping? By and large, digital wallets are used more regularly online than offline. Asia leads here too, with nearly ** percent of e-commerce transaction value in the region being handled by wallets. Wallets accounted for roughly half of global e-commerce transaction value in 2023, which is forecast to increase to ** percent by 2027. Future growth The United States is expected to see an increase in the use of wallets, with card-linked wallets reaching a Compound Annual Growth Rate (CAGR) of **** percent. This was lower than forecasts made for countries in Southeast Asia, however, with the predicted number of digital wallet users in Indonesia being a particular stand-out. This is attributed to the growth of so-called "super apps" in Asia - apps that combine multiple functionalities such as taxi services, online shopping, food delivery, and payment services. Notable brands for Indonesia are Ovo and ShopeePay.