Navigating the Indian Fashion E-Commerce Landscape: Challenges and Opportunities for Emerging Start-Ups

Krishna Teja Perannagari (), Shivaani Kannan () and B. Mythiri ()
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Krishna Teja Perannagari: Indian Institute of Management (IIM)
Shivaani Kannan: Indian Institute of Management (IIM)
B. Mythiri: Xavier Institute of Management and Entrepreneurship

International Journal of Global Business and Competitiveness, 2025, vol. 20, issue 1, No 2, 10-22

Abstract: Abstract In recent years, Indian fashion e-commerce has experienced significant growth, driven by increased digital adoption, rising disposable income among Gen Z consumers, and evolving lifestyle choices. India’s fashion e-commerce market, while being dynamic and competitive, also offers opportunities for new entrants. The current study explores the challenges faced by emerging start-ups primarily targeting Gen Z consumer segments and offers strategic insights to strengthen their competitive positioning. The study employs a multi-phased approach, beginning with interviews involving entrepreneurs from three start-ups operating in resource-constrained environments to identify the strengths and challenges of these start-ups. The study proceeds with a survey of the three start-up customers to understand their preferences and culminates with a series of interviews with entrepreneurs to investigate their approaches for achieving value-driven differentiation. The findings are systematically curated using the ERRC (Eliminate, Reduce, Raise, Create) framework, highlighting the importance of streamlining the start-ups’ value proposition, operations, marketing initiatives, and business model to sustain and excel in the fashion sector.

Keywords: Fashion industry; Entrepreneurial challenges; D2C e-commerce; Start-up differentiation; ERRC grid (search for similar items in EconPapers)
JEL-codes: L26 L81 M13 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s42943-025-00113-0

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