After achieving over $1 billion in gross merchandise value (GMV) in its fashion business in FY2018, e-tailer Flipkart is looking to double its average annual purchase value over the next five years.
The firm is looking to achieve an average annual purchase value of $60 by 2023, up from the current $30, said a top executive.
“One out of every two customers who visit Flipkart shops for fashion, and these customers are very sticky and buy two-three times a year, on average. We have garnered 35 per cent market share. We are looking to achieve 3x growth by 2020 and gain 50 per cent market share of online fashion by 2023,” said Rishi Vasudev, Head of Flipkart Fashion, at a round-table here on Tuesday.
Launched in 2012, the fashion category has grown to be among the firm’s top three categories. Asked about how its ‘mass premium’ brand positioning was distinct from Myntra and Jabong, both of which the company owns, Vasudev said: “Flipkart as a fashion brand operates across the full spectrum — from value to mid to premium offerings.”
Asked when fashion would overtake electronics as the No 1 e-commerce category, Kalyan Krishnamurthy, CEO, Flipkart, said: “From the customer and transaction point of view, over 50 per cent of our platform today is fashion. The average ticket size in India is still pretty low at ₹650-700. Therefore, fashion GMV will take a long time to overtake electronics GMV.”