Why e-commerce companies focus on fashion to become profitable
According to a survey conducted by
Amazon is already the largest seller of clothes online in the U.S. and is likely to achieve a market share of nearly 20% in the U.S. apparel market by 2020.
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If the world’s largest e-tailer is focusing on fashion to earn revenues, it must be the way forward for the e-commerce industry.
Wider Selection, Fast Fashion, Private Labels Can Boost Profitability
For Flipkart, India’s biggest e-tailer Fashion includes
Flipkart has also been increasing its focus on private labels, which offer higher margins because e-tailers make gross margins of 35% to 45% on regular brands and it can go up to 60% to 65% for private brands.
Private labels accounted for 20% of the Myntra’s gross sales in 2015.
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Myntra also bought out a major part of fitness and sportswear brand HRX, launched by actor
An online platform has an advantage over physical retailers to bring newer designs more quickly to consumers through a supplier network, without inventories piling up.
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That means that maybe cost-cutting for e-commerce companies can start with some cloth-cutting.