Online fashion commerce platform Ajio has started to contribute over 25 percent of Reliance Industries' apparel business, chairman Mukesh Ambani said during the company's 44th annual general meeting on June 24.
"Driven by innovation, Ajio now contributes to over 25 percent of our apparel business," he said, adding that the company's overall apparel business sold around five lakh units on a daily basis cumulating to over 18 crore units during the financial year ending March 2021.
Launched in 2016, Ajio now claims to be having a portfolio of over 2,000 labels and brands with five lakh listings on its platform.
According to a recent report by brokerage firm Goldman Sachs, Ajio managed to leave behind the market leader in online fashion Myntra in monthly app downloads year to date.
The app also competes with horizontal players such as Amazon and Flipkart that have been trying to up their ante in online fashion retail since the last few years.
As per the report quoted above, Reliance Retail which houses Ajio, is the largest retailer in India by market share and a market leader across food & grocery, electronics and fashion & apparel. These three categories represent 76 percent of the retail market in India.
However, except electronics, Reliance and organised retail overall still have a significant opportunity to gain share from the unorganised and fragmented market, especially in grocery and fashion, where RIL continues to focus on Tier 2 and 3 cities.
The e-commerce market is expected to grow to $119 billion by 2025 with over $14 billion of the incremental gross merchandise value (GMV) growth coming from the apparel and footwear segment in India.
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