Gen Z, premiumisation lift Flipkart Fashion growth 1,500 bps

Flipkart Fashion’s festive growth did not wait for Diwali. The platform’s fashion business is running 1,500 basis points higher year-on-year, with momentum building from Rakhi, Onam and Janmashtami, according to Kapil Thirani, senior vice president and head of Flipkart Marketplace and Flipkart Fashion.

The Rs 500 line is becoming a psychological boundary

Premiumisation is strengthening. Fashion priced at Rs 500 and above is growing significantly faster than products below Rs 500, with high-ASP fashion growth around 2,000 bps higher than low-ASP fashion. That is a signal for brand managers: value perception is shifting upward, not disappearing.

Gen Z wants trends, but on value terms

More than half of Flipkart Fashion’s consumers are now Gen Z, and this group is growing at nearly 5X the overall platform rate. Demand is visible in women’s Western wear, sneakers, shoes, oversized T-shirts and looser-fit jeans. Thirani frames it as Gen Z “looking for trends at value”—wearing the latest, but only when the product feels worth it.

Occasions are stretching the festive window

Shoppers are buying fashion for multiple occasions rather than saving purchases for traditional festivals. Most plan their festive wardrobes 20-30 days in advance, and children’s fashion is growing 60 per cent year-on-year on wider assortment and last-minute trend-led purchases.

Video discovery and assortment do the persuasion

The platform is seeing greater adoption of video catalogues and AI-led tools across its seller ecosystem. On the supply side, a zero-commission model has helped monthly fashion seller additions more than double over four to five months. Flipkart Minutes is experimenting with about 6,000-7,000 styles delivered in about 60 minutes in Bengaluru, where it contributes 7-10 per cent of fashion orders in select pincodes.

What to borrow

• Start the festive story early, from Rakhi and Onam, rather than waiting for Diwali.
• Build the Rs 500+ tier with trend-led assortment and video proof.
• Plan occasion-led messaging 20-30 days before the purchase moment.
• Treat Gen Z as value-seeking, not discount-chasing.

Fashion e-commerce is growing at 18-19 per cent, ahead of the broader fashion industry’s 11-12 per cent, and Flipkart expects that gap to widen over the next two-three years.

Source: ETRetail.com