India Ratings and Research (Ind-Ra) estimates a demand recovery for the apparel sector in FY22 while it expects 40-45 per cent decline in FY21 revenues. As per a Live Mint report, the agency also estimates a threefold jump in online sales for retailers in the current fiscal.
For the third quarter, Ind-Ra, a part of the Fitch Group, expects apparel sales to touch 80 per cent of pre-COVID levels, with food and grocery retail hitting more than 100 per cent.
The agency predicts an obvious significant shift in consumer shopping habits with more consumers buying goods online. Ind-Ra expects sales made through the online route to increase by a factor of more than three in FY21.
Companies have focused on a strong digital footprint with increased investments in developing their own websites and mobile apps, while also partnering with online channel partners to fuel growth, the agency said.
As a result, business via own websites or through online marketplaces is expected to increase to 10-15 per cent of total sales by FY22, up from 2-4 per cent, faster than the earlier five-year timeline predicted to reach this volume.