GST will have an effect on many sectors, including textiles and fashion. From raw material producers to readymade online distributors, every segment will feel the change, as consumer buying habits will be affected by the new tax regulations.

GST also includes specific sections that deal with compliance for e-retailers and online aggregators, adding more clarity to what has been a grey area in many aspects. Online consumer will have a better shopping experience with more sellers offering competitive prices and a larger range of choices compared to a scenario where established players share a consolidated market for the product.

A successful online fashion retailer is one with the best products and the best-targeted promotions. Irrespective of GST, a shopper buying apparel is still more likely to look for the best quality within a price point and the latest styles. The long-term focus will always be on correct sourcing, utilising real-time data, and gathering intelligence on consumer behavior and larger trends.

Strategic warehousing will be a thing of the past once a uniform tax hits the grassroots. These benefits are expected to trickle back into production and help the industry overall. Online platforms sell products that are the result of many co-operating segments in India’s large textile landscape, and a GST boost to producers and manufacturers will benefit online retailers.