<p>In recent years, Indian fashion e-commerce has experienced significant growth, driven by increased digital adoption, rising disposable income among Gen Z consumers, and evolving lifestyle choices. India’s fashion e-commerce market, while being dynamic and competitive, also offers opportunities for new entrants. The current study explores the challenges faced by emerging start-ups primarily targeting Gen Z consumer segments and offers strategic insights to strengthen their competitive positioning. The study employs a multi-phased approach, beginning with interviews involving entrepreneurs from three start-ups operating in resource-constrained environments to identify the strengths and challenges of these start-ups. The study proceeds with a survey of the three start-up customers to understand their preferences and culminates with a series of interviews with entrepreneurs to investigate their approaches for achieving value-driven differentiation. The findings are systematically curated using the ERRC (Eliminate, Reduce, Raise, Create) framework, highlighting the importance of streamlining the start-ups’ value proposition, operations, marketing initiatives, and business model to sustain and excel in the fashion sector.</p>