E-Commerce and Direct Selling: How Technology is Changing India’s Apparel Industry
By Roshan S Bisht, Co-Founder & CEO, Asort.com & Promoter – Cape & Cloth
The advancement of e-commerce alongside direct selling is profoundly changing India’s apparel industry. Statista forecasts that the industry will reach $105.5 billion by 2024, with a sustained growth rate of 3.42% per year from 2024 to 2027.
What is most remarkable is the marriage of e-commerce and direct selling. This fusion of shopping models is not only transforming India’s fashion retail industry and the way clothes are bought, but it is also significantly contributing to the economy and empowering millions of people
The Growth of Internet Shopping
The shopping culture in India is experiencing a paradigm shift, with online shopping becoming the primary avenue through which people purchase clothing.
The Economic Times states that more than half of Indians are online now, and that figure is projected to reach 900 million by 2025. With the ever-growing internet penetration, Indian fashion markets are further unlocking new avenues for growth.
More astonishing is that this change is not restricted to only metropolitan areas; it is penetrating into the rural and semi-urban pockets of the country, transforming purchasing behaviors.
The Constant Charm of Selling Face-to-Face
In India, direct selling persists as a popular approach to marketing goods and services to customers – selling directly to clients without going through retail intermediaries. The services offered via this approach flourish because the buyers, especially women, appreciate the hands-on engagement as a vital source of flexible economic possibilities. Driven by a deep societal urge for in-person interaction, the direct selling channel continues to thrive because the apparel sector greatly values convenience and the timely access to direct sellers customers are able to enjoy.
Technology Integration
The synergy that results from the combination of direct selling and e-commerce is where the true innovation lies. Many e-commerce sites now have capabilities for social selling, which allow the promotion and sharing of products with networks with utmost convenience. Simultaneously, direct selling firms have started using technology to train, manage logistics, and streamline other aspects of customer service. All of these factors are fostering the development of an efficient, interconnected, and agile clothing selling system.
Why This Collaboration Matters
This collaboration is beneficial for all parties within the ecosystem.
For e-commerce platforms, partnering with direct sellers helps in accessing a new network of customers. As a result, they gain more personalization and better customer relationships, which subsequently increases brand loyalty and awareness.
For direct selling companies, collaboration with e-commerce platforms provides access to a wider customer network which translates to ease in selling. Cost-effective and digitally enhanced operations also improve overall profitability. Finally, advanced data and analytics tools streamline selling strategies by providing sharper targeting for ads.
Customers can benefit from more options, reasonable prices, and a tailored shopping experience. Whether customers prefer to shop online or meet with a seller, they can now access personalized services smoother than before. More avenues for shopping translate to greater ease and convenience, fundamentally transforming modern-day shopping.
Government Actions to Foster Development
Recognizing the opportunities for collaboration, the Indian government has implemented policies to aid. The Consumer Protection Act 2019, the draft E-commerce Guidelines 2023, and the Model Direct Selling Guidelines 2021 provide a balanced framework for competition, consumer protection, and corporate social responsibility across both sectors.
Obstacles to Address
There are important obstacles that must be resolved first. Direct selling continues to build trust, requiring a transparent approach and adherence to ethical frameworks to counter previous criticisms. Forming a reliable delivery mechanism, especially in rural areas, is vital for enduring development. Safeguarding personal data is critical risk area, necessitating stringent adherence to privacy laws to secure sensitive information.
Looking Ahead
Technology is radically changing how people in India buy and sell clothes by merging eCommerce with direct selling. The remarkable figures support this growth. With the changing dynamic, entrepreneurs are going to have more avenues, while customers will enjoy a better and more personalized shopping experience. As the clothing industry in India grows, this model powered by technology is set to transform the landscape to provide maximum value for sellers and buyers as well as the economy.