Amazon has entered the Indian fast-fashion market with a bang, quietly launching a new store on its app called Bazaar. The store features affordable and trendy fashion and lifestyle products, giving the company a stronger foothold against competitors like Flipkart and Reliance’s Ajio.
The world’s largest e-commerce firm has been taking steps to compete in this growing market, with recruitment efforts for Bazaar beginning in February. According to TechCrunch, the company promises sellers “hassle-free” delivery, zero referral fees, and access to a vast customer base.
“You can find items from clothing, accessories, and jewelry to handbags, shoes, traditional and western wear, and a wide array of home goods including kitchenware, towels, bed linens, and décor items,” Amazon stated on a support page.
The popularity of affordable fast-fashion has been on the rise in India, resulting in a shift in the e-commerce category mix. Bernstein analysts noted that fashion has seen the most significant growth since FY19 and now holds the highest category share.
Bazaar’s offerings include “trendy” t-shirts starting at 129 Indian rupees ($1.55) and sneakers priced under $3. This move by Amazon is critical as they continue to invest in the Indian market, having already put in over $11 billion. However, the company’s e-commerce arm still holds the second spot behind Flipkart.
Last year, CEO Andy Jassy announced plans to invest $12.7 billion in AWS by 2030, with an additional $2 billion committed to the e-commerce division during the same period.
The fast-fashion e-commerce market has grown significantly in India, with local startups finding inspiration from global pioneers like Zara, H&M, and Uniqlo. While Flipkart holds the lead in this category, it faces tough competition from Reliance’s Ajio, which has captured approximately 30% market share in just one year, as reported by Bernstein.
Ajio launched its own fast-fashion platform, Ajio Street, last year, offering a wide selection of clothing and accessories at prices as low as 199 Indian rupees ($2.4). The platform guarantees the “lowest price” for its products, waives delivery charges, and offers a straightforward returns process.
Last year, Shein, a global pioneer in fast-fashion, announced its plans to re-enter the Indian market through a joint venture with Reliance, the country’s most valuable company. Reliance also operates Reliance Retail, the largest retail chain in the country.
