What's a Good ROAS for Premium Fashion Brands in India? (₹5,000-25,000 AOV)

If you're running ads for a premium fashion brand in India—selling sarees at ₹12,000, kurta sets at ₹8,000, or designer jewelry at ₹15,000—you've probably asked yourself: "Is my ROAS actually good?"

The answer isn't simple. While that D2C brand selling ₹500 products might boast 5x ROAS, premium fashion operates differently. Let's talk real numbers.

The Realistic ROAS Benchmark: 2x to 3.5x (Delivered)

For premium fashion brands in India (₹5,000-25,000 AOV), a blended ROAS of 2x to 3.5x delivered is healthy.

Here's the breakdown by funnel stage:

Top of Funnel:

• Cold traffic: 1.2x - 2x ROAS

• Brand awareness: 0.5x - 1.2x ROAS

Middle Funnel:

• Engagement: 1.8x - 3x ROAS

Bottom Funnel:

• Cart abandoners: 3.5x - 6x ROAS

• Past customers: 5x - 8x ROAS

Blended ROAS: 2x - 3.5x

Critical: These are placed order numbers. After RTO (Return to Origin), your delivered ROAS will be 15-20% lower.

Why Indian Premium Fashion ROAS Is Different

The COD & RTO Reality

Here's 2024 data you need to know:

• Overall market: 62% prepaid, 38% COD

• Tier 2/3 cities: 70% COD (where 60% of growth is happening!)

• RTO rates: 24% for COD orders, 10% for prepaid

The math: If 40% of your orders are COD with 24% RTO and 60% are prepaid with 10%

RTO, that's ~15.6% overall RTO. Your 3x placed order ROAS becomes 2.5x delivered ROAS.

You must track delivered ROAS, not just placed order ROAS.

City Tier Dynamics

Metro Cities (Delhi, Mumbai, Bangalore):

• 62%+ prepaid, lower RTO

• ROAS: 2.5x - 4x possible

• Higher CAC (₹1,200-2,500) but better economics

Tier 2/3 Cities (Indore, Surat, Chandigarh):

• 70% COD, 20-30% RTO

• ROAS: 1.8x - 2.8x

• Lower CAC (₹800-1,500) but RTO challenges

• Critical insight: These cities drove 60% of India's e-commerce growth in 2024!

Rising Acquisition Costs

2024 reality: Google Ads CPC increased 30-100%, Facebook CPM up 25-40%. CAC that was ₹800 in 2023 is now ₹1,200+ in 2024.

What Impacts Your ROAS

Product Category (delivered ROAS):

• Sarees & ethnic wear: 2x - 3x

• Designer jewelry: 1.8x - 2.8x

• Kurta sets: 2.2x - 3.5x

• Lehengas: 1.5x - 2.5x

Seasonality matters: Festive season (Aug-Feb) sees 30-60% higher ROAS than off-season.

The #1 Way to Improve ROAS: Reduce RTO

Reducing COD RTO from 24% to 14% has nearly the same impact as improving your ROAS by 0.5-0.7x—without spending more on ads.

Prepaid incentive strategies:

• Offer ₹200-500 off on prepaid orders

• "Extra 5% off + free shipping on prepaid"

• Every ₹100 prepaid discount saves ₹150-200 in avoided RTO costs

COD verification:

• Double confirmation via WhatsApp

• Send product videos before shipping

• "Only 2 left" for genuine scarcity

Quick Wins for Better ROAS

1. Segment by City Tier

Run separate campaigns for Tier 1 vs Tier 2/3 with different creative and CAC targets.

2. Leverage WhatsApp Commerce

Significant sales happen off-platform. Respond to DMs within 2 hours, share styling videos, offer personal shopper service for orders >₹10,000.

3. Build Trust Aggressively

• Customer photos/videos in every ad

• "1,000+ 5-star reviews" prominently displayed

• Behind-the-scenes content

• Show your physical store if you have one

4. Capitalize on Festivals

Start Diwali campaigns 30-45 days before. Show products styled for specific festivals. "Delivered before Diwali" guarantees work.

The Secret to 7-9x ROAS: Product Uniqueness + Storytelling

Here's what most guides won't tell you: All the campaign optimization can't fix a commodity product.

Brands achieving 7-9x ROAS aren't just running better ads. They've created something unique that people need to have.

What Makes a Product ROAS-Magnet?

1. Solves a Specific Problem Don't just sell "premium sarees." Sell:

• No-pin sarees for working women

• Lightweight travel-friendly sarees

• Machine-washable silk

Real example: A "no-pin saree" brand achieved 8x ROAS. CAC ₹1,200, AOV ₹9,500, 35% repeat rate.

2. Create a Unique Category Position Instead of competing in "kurta sets," create:

• "Airport outfits for Indian women"

• "Temple-wear luxury collection"

• "Reversible festive wear" Maybe not but am sure you can think better than this.

When you own a micro-category, you're not competing on price.

3. Tell a Compelling Story

❌ "We're passionate about India's heritage..."

✅ "My grandmother was a weaver in Banaras. When she passed, her loom went silent. This brand brings her art back to life—every piece has her signature motif, and 30% of profits support weavers' daughters' education."

Brands with authentic stories see 40-60% lower CAC and 2-3x higher organic reach.

The Compound Effect

Commodity Product:

• CAC: ₹1,500

• Conversion: 1.5%

• Repeat rate: 15%

• ROAS: 2.5x

Unique Product with Story:

• CAC: ₹900 (less competition, strong story)

• Conversion: 3.5% (clear USP)

• Organic traffic: 30% (brand searches)

• Repeat rate: 35%

• Earned media: Free PR

• ROAS: 7-8x

Your action: Complete this sentence - "We're the only brand that..." If you can't, you don't have a USP yet.

Track These Metrics (Not Just ROAS)

1. Delivered ROAS vs placed order ROAS

2. RTO rate by campaign and city

3. CAC split: prepaid vs COD

4. Contribution margin after RTO

5. Customer LTV by payment method

The Bottom Line

2024-25 Benchmarks:

• Placed Order ROAS: 2.5x - 4x

• Delivered ROAS: 2x - 3.5x

• CAC: ₹800-2,500 (up 25-40% from 2023)

The Reality: Your dashboard shows 3x ROAS on placed orders. After 40% COD (24% RTO) + 60% prepaid (10% RTO), your delivered ROAS is 2.5x. This is okay—if you know it and plan for it.

The Opportunity:

• Fashion is 29% of all e-commerce orders (largest category)

• Tier 2/3 cities driving 60% of growth

• UPI reducing COD preference (one brand: 29% to 17% COD in months)

Remember:

• Reducing RTO by 10 points = +0.5-0.7x ROAS boost

• Every ₹100 prepaid discount saves ₹150-200 in RTO costs

• Product uniqueness + story > campaign optimization alone

Stop comparing yourself to:

• Mass-market ₹500 AOV brands with 80% prepaid

• Western luxury brands (different payment dynamics)

• Your own 2023 numbers (CAC has spiked!)

The goal isn't the highest ROAS—it's profitable, sustainable growth. Build for India's 2024-25 reality: UPI rising, Tier 2/3 booming, ad costs climbing. Your strategy must evolve with it.

If you're stuck at 2-3x ROAS, the breakthrough might not be in your ad account—it might be in creating something genuinely unique that people want to talk about.

Running ads for premium fashion in India? I help brands (₹5K-50K AOV) scale profitably with strategies built for Indian market realities—COD, RTO, tier-wise targeting, and all. Let's talk.

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