Can e-commerce take over retail spaces? | Fashion

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The constant demand for fast fashion and ready-to-wear in Pakistan has forced fashion designers to leave the comfort of their studios and open lavishly furnished flagship stores across the country, offering creative creations. Not only has this relieved consumers of the hassle of booking a studio appointment for an outfit, it has also forced designers to think in terms of business and volume beyond just artistic creativity.

While the booming market for fashionable ready-to-wear has encouraged designers like Sania Muskatia and Zara Shahjahan to hit the high street, the truth is that mass crowds can only be seen during sales. Unsettled economic problems have made consumers more reluctant to overspend, while the ever-increasing costs of setting up a business mean that a young designer can’t physically grow beyond a certain point. In this case, it may be important to note the growing popularity of online shopping.

According to Zahir Rahim Tola of Labels, retail expansion is facing a temporary population crunch that can be better addressed by adopting e-commerce as a business model. “Pakistan is poised for substantial e-commerce growth as it does not enjoy a transient population so the only way to grow business is through the e-commerce route,” he advised Instep while talking to Instep. said while talking to

Over the years, the world has seen a significant increase in online shopping for fashion and apparel, which is the second largest e-commerce sector after electronics. With approximately 3.17 billion internet users for whom buying clothes online has become second nature, fashion brands worldwide have the opportunity to expand their target market beyond their physical reach. And now with luxury labels like Chanel and Burberry, notorious for shying away from moving into e-commerce, dipping their toes into the e-market by launching online shopping platforms that sell more than just cosmetics. are, it can be safely said. The World Wide Web has revolutionized the fashion business as the desire to shop online is growing globally at 19% per year.

It seems Pakistani consumers are no different. “Bricks and mortar accounts for 20% of e-commerce business internationally. However, in Pakistan we have seen e-commerce as compared to physical retailing. Commerce has seen a huge percentage of growth. One only needs to look at the current statistics to see that the future of fashion The business is in e-commerce.The e-commerce business is estimated to be US$25 million to US$1 billion annually.6 billion in the next five years It is expected to increase to USD,” revealed Rahim Tola. “There are 30 million internet users which makes it about 15% density and increasing month by month. An interesting fact is That fashion related Facebook has 15 million fans and the number is growing day by day.”

It’s no wonder that more and more designers are entering the online market. Designer Zaheer Abbas, who has long been criticized for being one of the most inaccessible designers, recently launched his new e-store, giving customers from three different continents just a click away. Also get a chance to hang your design in their closets. . Visually appealing and detailed in the variety it offers, Zaheer’s website has to be one of the most customer-friendly and design-wise among its contemporaries. Apart from giving users a 360-degree visual of the garment, it also has a buy-one option in different currencies.

When asked why they chose to open a website instead of a proper retail space, they said, “We wanted to go into an e-store because our label has a very international appeal and it seemed like a good idea. “E-stores are far more transparent. Customers can sit at home and quote high prices. You won’t have to open a retail store everywhere.”

That’s certainly not given the rising operating costs, squeezed profit margins and never-ending utility costs. However, while a viable option and with a wider reach, e-commerce also does not come without challenges, the first and foremost being size. E-store purchases do not guarantee that the garment purchased will fit properly. According to international studies, between 20 and 40 percent of all clothing purchased online is returned, often due to problems with the fit of a garment. This in turn can be a costly business transaction for the designer, as it results not only in lost revenue but also in lost overheads associated with shipping.

“There will always be a need for physical stores. For lower-end or commodity products, people are increasingly shopping online locally, but for high-end fashion, women in luxury fashion prefer to try the options. That’s why our Most of the sales are done locally in the stores as the e-store is more popular with international clients,” asserted Umair Tabani from Sania Muskatiya.

Despite its flaws, e-commerce is quickly becoming a bigger piece of the pie, can it really completely take over a physical presence? Not yet; At least not in Pakistan. While reports point to a growing global trend of consumers turning to the Internet for shopping, a recent survey showed that Pakistan currently has 80 percent of Internet users compared to Europe and North America. Only 20 percent, which is increasing but still low. Why physical sales still dwarf online ones. The best strategy then becomes to navigate between the two now.

“Designers will have to go back to their drawing boards to create a business model based on high-end pret and bridal wear with the inclusion of an e-store for both local and international clients as it is the most profitable. segment. The business of fashion in Pakistan,” advises Rahim Tola.

According to Forbes, designers can no longer rely on the concept of ‘build it, and they will come’. While it’s understandable that Pakistani fashion encourages women to make a conscious effort to try on a dress first, a handful of simple clicks is more appealing than walking the distance to find what you want on the rack. Furthermore, location limitation means that only a certain demographic of customers are offered the privilege of a buyer’s experience while you miss out on the rest. E-commerce means identifying and accessing these new markets. Markets that are out of one’s reach, so it’s best not to underestimate its impact. Now is the time to re-engineer a model that includes both online and physical presence until future evolution requires a rethink.