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Economic Times
5 days ago
- Business
- Economic Times
Quick fashion plays trials with AI to win ‘no return' game
TIL Creatives Startups in the 60-minute fashion delivery segment are betting on features such as 'try and buy' and artificial intelligence (AI)-powered virtual try-ons to tackle high return rates, a key pain point in the segment. These tools are helping increase conversion rates and reduce returns while offering greater flexibility to buyers, said industry executives. Mumbai-based Knot, which recently raised funding from venture capital firm Kae Capital, said partner brands that typically see return rates of about 20% on their direct-to-consumer websites are witnessing sub-1% returns through offline stores, a trend it is now replicating through these digital features. 'Our partner brands, which have offline stores, would typically witness 20% returns on their direct to consumer websites. But for the same purchases on offline stores, the returns are less than 1%. That is the idea. With the 'try and buy' feature, users can make a very decisive purchase at their doorstep,' Archit Nanda, CEO of Knot, told ET. Return rates among users of the company's virtual try-on feature are similarly much lower than the platform's overall user base, he said. Other venture-backed quick fashion delivery startups such as Bengaluru-based Slikk, Mumbai-based Zilo and Gurugram-based Zulu Club are also testing similar features to increase conversions and reduce returns. 'Returns play as big a part as maybe forward delivery does. Because these are expensive products, giving the customer his or her money back also plays a very critical role,' said Akshay Gulati, cofounder and CEO of Slikk. Instant returns Slikk is piloting an 'instant returns' feature where, like its 60-minute delivery service, returns are also completed within an hour. Once a return request is made on the app, a delivery partner picks up the product and refunds the amount instantly. The startup claims its return rate is 40-50% lower than that of traditional marketplaces and that it doesn't charge customers any extra fees for users said they were satisfied with the delivery speed and trial window but pointed out that the app does not provide any return status updates until the product reaches the warehouse."I received my order within 60 minutes and had enough time to try it out. However, after returning the product, I didn't receive any notification in the application until the delivery agent reached the warehouse," said Mohammed Shibili, a working professional based in Bengaluru, who tried Slikk's feature. Also Read: Quick-fashion delivery startups attract fresh VC capital Investor interest Investors tracking the segment estimate that try-and-buy and virtual try-on features can reduce return rates by 15-20 percentage points, translating into substantial cost savings for both platforms and brands.'Features like try and buy are a huge cost save, not just for the platform but also for the brand. The brand otherwise would lose that inventory till it comes back and can't make the sale on it. But now, that's all getting quickly turned around. So, for the brand, it's a win-win situation as well as for the customer where the money is not getting stuck till it gets the returns refunded,' said Sunitha Viswanathan, partner at Kae Capital. Also Read: Blinkit, Zepto pilot returns, exchanges to ace fashion ecommerce Old model, new infrastructure Flipkart-owned fashion etailer Myntra had introduced try and buy back in 2016 to attract traditional shoppers to online retail. However, the feature didn't scale up due to supply chain limitations, according to industry executives.'Back when Myntra launched 'try and buy', there was no hyperlocal delivery infrastructure. Deliveries were through national courier services. That model isn't feasible to try and buy unless you have your own hyperlocal delivery fleet,' the founder of a fashion delivery startup said on condition of founder added that while Myntra operated from large warehouses located on the outskirts of cities, the new-age supply chains are built within cities, allowing faster deliveries and enabling features like try and buy. By the end of last year, Myntra had launched M-Now, an ultra-fast delivery service currently live in Bengaluru, Mumbai and Delhi, with pilots in other cities. The company said daily orders through M-Now doubled in the last quarter. 'Although it's still early, our observations so far suggest that the quick delivery model, with its reduced wait time, attracts high-intent customers, leading to naturally lower return rates,' said a spokesperson for etailer did not confirm whether the try-and-buy feature is being tested under M-Now. Viability concerns persist Despite the benefits, the long-term viability of these features is open to question, experts said.'There is a cost to also providing these services (like try and buy), and whether that becomes viable at all is a question mark at this point of time. I think that's what the concern is, and it has not been that viable,' said Devangshu Dutta, founder of Third Eyesight, a management consulting firm focused on consumer goods and retail added that when platforms offer the try-and-buy feature, delivery executives have to wait while customers try on products, which increases the cost per delivery and reduces the number of deliveries that can be completed. Despite that, some items may still be returned, further impacting operational startups are experimenting with these features mainly on higher-margin products to offset operational costs, Dutta said, as return rates across fashion categories can range from under 10% to as high as 40% for certain items. Also Read: Rapid fashion delivery gathers pace, but long-term viability in question Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. From near bankruptcy to blockbuster drug: How Khorakiwala turned around Wockhardt Can Chyawanprash save Dabur in the age of Shark-Tank startups? Why Air India could loom large on its biggest rival IndiGo's Q1 results Apple has a new Indian-American COO. What it needs might be a new CEO. How India's oil arbitrage has hit the European sanctions wall Central banks' existential crisis — between alchemy and algorithm Short-term valuation headwinds? Yes. Long-term growth potential intact? Yes. Which 'Yes' is more relevant? 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Time of India
5 days ago
- Business
- Time of India
Quick fashion plays trials with AI to win ‘no return' game
Academy Empower your mind, elevate your skills ETtech Startups in the 60-minute fashion delivery segment are betting on features such as 'try and buy' and artificial intelligence (AI)-powered virtual try-ons to tackle high return rates, a key pain point in the segment. These tools are helping increase conversion rates and reduce returns while offering greater flexibility to buyers, said industry Knot , which recently raised funding from venture capital firm Kae Capital, said partner brands that typically see return rates of about 20% on their direct-to-consumer websites are witnessing sub-1% returns through offline stores, a trend it is now replicating through these digital features.'Our partner brands, which have offline stores, would typically witness 20% returns on their direct to consumer websites. But for the same purchases on offline stores, the returns are less than 1%. That is the idea. With the 'try and buy' feature, users can make a very decisive purchase at their doorstep,' Archit Nanda, CEO of Knot, told rates among users of the company's virtual try-on feature are similarly much lower than the platform's overall user base, he venture-backed quick fashion delivery startups such as Bengaluru-based Slikk , Mumbai-based Zilo and Gurugram-based Zulu Club are also testing similar features to increase conversions and reduce returns.'Returns play as big a part as maybe forward delivery does. Because these are expensive products, giving the customer his or her money back also plays a very critical role,' said Akshay Gulati, cofounder and CEO of is piloting an 'instant returns' feature where, like its 60-minute delivery service, returns are also completed within an hour. Once a return request is made on the app, a delivery partner picks up the product and refunds the amount instantly. The startup claims its return rate is 40-50% lower than that of traditional marketplaces and that it doesn't charge customers any extra fees for users said they were satisfied with the delivery speed and trial window but pointed out that the app does not provide any return status updates until the product reaches the warehouse."I received my order within 60 minutes and had enough time to try it out. However, after returning the product, I didn't receive any notification in the application until the delivery agent reached the warehouse," said Mohammed Shibili, a working professional based in Bengaluru, who tried Slikk's tracking the segment estimate that try-and-buy and virtual try-on features can reduce return rates by 15-20 percentage points, translating into substantial cost savings for both platforms and brands.'Features like try and buy are a huge cost save, not just for the platform but also for the brand. The brand otherwise would lose that inventory till it comes back and can't make the sale on it. But now, that's all getting quickly turned around. So, for the brand, it's a win-win situation as well as for the customer where the money is not getting stuck till it gets the returns refunded,' said Sunitha Viswanathan, partner at Kae fashion etailer Myntra had introduced try and buy back in 2016 to attract traditional shoppers to online retail. However, the feature didn't scale up due to supply chain limitations, according to industry executives.'Back when Myntra launched 'try and buy', there was no hyperlocal delivery infrastructure. Deliveries were through national courier services. That model isn't feasible to try and buy unless you have your own hyperlocal delivery fleet,' the founder of a fashion delivery startup said on condition of founder added that while Myntra operated from large warehouses located on the outskirts of cities, the new-age supply chains are built within cities, allowing faster deliveries and enabling features like try and the end of last year, Myntra had launched M-Now, an ultra-fast delivery service currently live in Bengaluru, Mumbai and Delhi, with pilots in other cities. The company said daily orders through M-Now doubled in the last quarter.'Although it's still early, our observations so far suggest that the quick delivery model, with its reduced wait time, attracts high-intent customers, leading to naturally lower return rates,' said a spokesperson for etailer did not confirm whether the try-and-buy feature is being tested under the benefits, the long-term viability of these features is open to question, experts said.'There is a cost to also providing these services (like try and buy), and whether that becomes viable at all is a question mark at this point of time. I think that's what the concern is, and it has not been that viable,' said Devangshu Dutta, founder of Third Eyesight, a management consulting firm focused on consumer goods and retail added that when platforms offer the try-and-buy feature, delivery executives have to wait while customers try on products, which increases the cost per delivery and reduces the number of deliveries that can be completed. Despite that, some items may still be returned, further impacting operational startups are experimenting with these features mainly on higher-margin products to offset operational costs, Dutta said, as return rates across fashion categories can range from under 10% to as high as 40% for certain items.
Time of India
12-07-2025
- Business
- Time of India
Quick fashion delivery startup Blip shuts down in less than a year
Ansh Agarwal, cofounder of quick fashion delivery startup Blip , announced that the company has shut down operations less than a year after launch. This has come when the rapid ecommerce space, particularly in the fashion segment has seen backing from venture capital firms as well as foray of larger a LinkedIn post, Agarwal wrote, 'After building for over a year, we've finally called it a day. While we still believe in this space, bootstrapping with limited capital made it incredibly hard to compete.'Blip had taken a differentiated approach with several 'first-in-market implementations', he said, adding that this came with challenges — particularly around convincing stakeholders, which slowed their go-to-market efforts.'With limited working capital and an inefficient GTM (go-to-market) execution, continuing didn't make sense,' Agarwal said. 'We had to make the tough call to shut Blip down.'The closure comes even as quick fashion delivery is gaining momentum and investor interest . As ET reported last month, brands like Newme, Slikk, and Blip, along with platforms such as Myntra , Ajio, and Nykaa , are experimenting with ultra-fast fashion delivery models. In May, Bengaluru-based 60-minute fashion delivery startup Slikk raised $10 million from Nexus Venture Partners and Dungarwal, founder of fashion brand Snitch , said while quick delivery sparked early interest through platforms like M-Now, Slikk, and Knot, most consumers still gravitate toward wardrobe staples. 'We've done polls with users, and most said they don't buy clothes last-minute unless there's a sudden plan or urgent need,' he Blip's shutdown, Agarwal remains bullish on the category. 'I still believe in the space and the need to verticalise quick commerce — just not through us,' he said.
Time of India
05-06-2025
- Business
- Time of India
Rapid Delivery's in Fashion at Ecomm, New-age Apparel Cos
HighlightsNew direct-to-consumer brand Snitch has launched a pilot project for its quick fashion delivery service in Bengaluru, joining other brands like Newme, Slikk, and ecommerce platforms such as Myntra, Ajio, and Nykaa in exploring ultra-fast delivery for fashion and apparel. Slikk, which offers delivery within 60 minutes, recently raised $10 million in funding led by Nexus Venture Partners, while Snitch has secured $40 million from 360 One Asset to expand its offline retail presence and enter the quick commerce segment. Industry experts caution that the rush towards rapid fashion delivery may be an overhyped extension of the quick commerce trend, noting that the supply chain for fashion is significantly more complex than that of grocery delivery. New-age brands like Newme, Slikk and Blipp, as well as ecommerce platforms such as Myntra, Ajio and Nykaa are all exploring ultra-fast delivery for fashion and apparel. The latest to join the race is Bengaluru-based D2C brand Snitch. Its founder Siddharth Dungarwal told ET that the company has launched a pilot project for its own quick fashion delivery service in Bengaluru last week. Seeing the rush, venture capitalists are betting on the segment. Slikk, which promises delivery within 60 minutes, recently raised $10 million (about Rs 85 crore) in a round led by Nexus Venture Partners. Snitch has raised as much as $40 million from 360 One Asset, with the proceeds to be used for expanding its offline retail presence to more than 100 stores by the end of 2025 and entering quick commerce. Some industry insiders believe this may be another overhyped extension of the quick commerce narrative. The model is new and comes with its own set of challenges. The push towards rapid delivery began with quick commerce platforms like Zepto, Swiggy Instamart and Blinkit expanding the categories of products they deliver. These platforms, which were initially focusing on grocery delivery, partnered with brands like Jockey, Manyavar, Puma and Adidas to offer apparel and accessories, although limited to essentials such as innerwear, socks, gym wear, basic tees and track pants. This opened up a gap for fashion-first players to offer broader selections with quick fulfilment. "Fashion is an experiential category. The supply chain required for fashion and lifestyle is far more complex than grocery," said Akshay Gulati, cofounder and chief executive of Slikk.
Time of India
05-06-2025
- Business
- Time of India
Rapid fashion delivery gathers pace, but long-term viability in question
New-age brands like Newme , Slikk and Blipp, as well as ecommerce platforms such as Myntra, Ajio and Nykaa are all exploring ultra-fast delivery for fashion and apparel. The latest to join the race is Bengaluru-based D2C brand Snitch. Its founder Siddharth Dungarwal told ET that the company has launched a pilot project for its own quick fashion delivery service in Bengaluru last week. Seeing the rush, venture capitalists are betting on the segment. Slikk, which promises delivery within 60 minutes, recently raised $10 million (about Rs 85 crore) in a round led by Nexus Venture Partners. Snitch has raised as much as $40 million from 360 One Asset, with the proceeds to be used for expanding its offline retail presence to more than 100 stores by the end of 2025 and entering quick commerce . Some industry insiders believe this may be another overhyped extension of the quick commerce narrative. The model is new and comes with its own set of challenges. The push towards rapid delivery began with quick commerce platforms like Zepto, Swiggy Instamart and Blinkit expanding the categories of products they deliver. These platforms, which were initially focusing on grocery delivery, partnered with brands like Jockey, Manyavar, Puma and Adidas to offer apparel and accessories, although limited to essentials such as innerwear, socks, gym wear, basic tees and track pants. This opened up a gap for fashion-first players to offer broader selections with quick fulfilment. 'Fashion is an experiential category. The supply chain required for fashion and lifestyle is far more complex than grocery,' said Akshay Gulati, cofounder and chief executive of Slikk. 'I'm not sure how a grocery-first platform can scale and solve for this category in depth.' Predicting demand in real time Keeping up with ever-changing fashion preferences is another major hurdle. Brands say accurately forecasting demand — sometimes before customers themselves know what they want — is critical. Many startups are leaning on proprietary AI models and data science teams to stay ahead. These tools help analyse social media chatter, search trends and buying patterns to identify what is likely to trend next. Newme, for instance, has built a dedicated data science team that uses these insights to drive design and inventory decisions, cofounder Sumit Jasoria told ET. Cautionary signs Despite the buzz, challenges persist. One of them is customer behaviour. While there's early interest in fast delivery, shoppers tend to play it safe. Dungarwal said although customers initially showed enthusiasm when Snitch joined platforms like Myntra's M-Now, Slikk and Knot, many reverted to buying only wardrobe basics such as black t-shirts or shirts via these services. 'We've done multiple polls with consumers. Most of them said they don't buy clothes last-minute unless they have a sudden plan or urgent need,' he said. Another issue is forecasting fashion demand at a hyperlocal level. 'If a brand misjudges demand at the pin code level, it will be stuck with unsold inventory,' said a Bengaluru-based industry expert. 'Liquidating it will mean additional cost.' Returns are another pain point. Sizing, fit and comfort issues lead to high return rates in fashion, and rapid delivery doesn't solve for that. 'These platforms are burning money to process returns, which can go as high as 35-40%,' the expert added. The rapid fashion model is still in its early days. While there's excitement around it, the real test will be how brands manage inventory, reduce returns and drive consistent demand without compromising margins, say industry experts.
