Once rooted in touch-and-feel retail, the apparel industry is now sprinting ahead in the quick commerce race
As quick commerce redefines how consumers shop, the apparel sector is embracing ultra-fast delivery models to keep pace with the demand for instant gratification. An industry traditionally marked by touch and feel retail now finds itself competing in the rapid commerce space to be the quickest ones to reach the consumers.
As value-conscious millennials and status-seeking Gen Z have become comfortable buying through organised retail and digital channels, the brands have cashed in on the opportunity to be ahead in the race. With Libas, an ultra-fast fashion brand, collaborating with Zepto to strengthen its digital-first strategy, being one such move in this direction, others have also ventured on the ultra-fast delivery mode.
India’s apparel market is projected to hit USD 130 to 150 billion by 2030, growing at a 10 to 12 per cent compounded annual growth rate (CAGR), with branded apparel accounting for the majority of spend by then, as per a report by Redseer Strategy Consultants.
Speed Driving Customer Engagement
Consumers across segments are now seeking new propositions, wardrobes are expanding across occasions, and pricing and trend-orientation are emerging as key decision drivers. The report by Redseer Strategy Consultants emphasised that at the same time, distribution is formalising rapidly, with online, exclusive brand outlets, and multi-brand retail projected to account for over 60 per cent of apparel purchases by 2030.
We see a marked preference for occasion-driven and seasonal categories in ultra-fast orders, with t-shirts, casual shirts, and partywear being top performers. While the average ticket size for ultra-fast orders is lower than traditional orders, repeat purchase frequency has increased, signalling that speed is driving greater customer engagement across key segments,” highlighted Basant Goyal, Whole Time Director, Cantabil Retail India.
While the world of ultra-fast deliveries may appear fancy, proactively restocking inventory across multiple cities and pin codes to ensure timely deliveries and minimise potential issues becomes crucial. With this approach, brands consistently seek to meet customer expectations for speed and reliability.
“Managing inventory for fashion and apparel is complex, given the multiple sizes and styles involved. To streamline this, we are moving towards centralised warehouses for all channels. This will enhance our inventory visibility and control, helping us optimise stock levels, minimise stockouts and overstocking, and boost fulfilment efficiency,” noted Bhavay Pruthi, Vice President- Ecommerce and Products, Libas.
Managing Returns And Exchanges
One major concern that kept the apparel brands away from venturing into the quick commerce arena was the high return rate associated with the segment. With the turnaround time being comparatively shorter when it comes to ultra-fast delivery models, the brands have tried to play it safe.
“For quick commerce, we offer a three-day return window, which is shorter than the standard 7 days, striking a balance between operational efficiency and our ongoing commitment to customer satisfaction,” Pruthi explained.
The initial trends observed by the brands reveal encouraging conversion rates on quick commerce, with Libas noting that ticket sizes remain largely consistent across channels. Scalability of ultra-fast delivery hinges on logistics infrastructure, supply chain resilience, and environmental considerations. For brands, ensuring consistent product quality at scale while managing fulfilment costs is critical.
While ultra-fast delivery meets a growing need for convenience, lasting value in fashion comes from combining speed with connection, offering not just quick access but meaningful experiences. However, this comes up with changes not just in supply chain and demand, but also in terms of customer acquisition, phygital conversions, marketing models and much more,” stated Maadhav Bhide, Founder and Chief Executive Officer (CEO), Ekatra Global.
With speed being a baseline expectation, personalised service is also a key. As quick commerce is projected to grow at over 40 per cent annually through 2030, the growth will be driven by expansion across categories, geographies, and customer segments, as per a report by Bain and Company, in collaboration with Flipkart. The report noted that while quick commerce began with grocery, 15 to 20 per cent of its gross merchandise value (GMV) now comes from categories such as general merchandise, mobile phones, electronics, and apparel.
As the next phase of growth for apparel brands will be led by their ability to adapt to the evolving channels of distribution, the growing stature of quick commerce as a preferred mode of shopping will lure the brands. For consumers, the next era promises not just speed and convenience, but also a new standard of service, led by intense competition and innovation among brands.
