27 August 2024, Mumbai

Footwear retailer Metro Brands plans to expand its brick and mortar presence by opening 225 new stores across India over the next two fiscal years.

Known for offering a wide range of casual and formal footwear for the entire family, Metro Shoes is poised for substantial growth in the current financial year. The company anticipates its sales to grow in the range of 10 per cent -15 per cent and CAGR to grow between 15 per cent to 18 per cent, says Kaushal Parekh, Chief Financial Officer, Metro Brands.

Focused on ensuring that its expansion aligns with its return on capital targets, Metro Brands also plans to leverage strategic collaborations to fuel growth. The company recently partnered with the US-based Foot Locker to enhance its sports and athleisure offerings. The first Foot Locker store under this partnership is scheduled to open in the second half of the 2025 fiscal year.

Despite a 3 per cent Y-o-Y decline in net profits during the Q1, FY25to Rs 92 crore, Metro Brands expects robust growth in the second half of the fiscal year, driven by its ongoing expansion of offline stores.

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26 August 2024, Mumbai

Denim brand Lee has launched its collaborative clothing collection with renowned designer and couturier SuneetVarma.

Launched along with a pan-India media campaign featuring Bollywood star Sara Ali Khan, the Lee x SuneetVarma collection embodies the brand’s commitment to provide innovative and stylish experiences, says NitinChhabra, CEO, Ace Turtle. It blends denim with Indian couture to celebrate individuality, and marks a bold step into the fashion and lifestyle space.

Currently available in Lee’s physical stores across India, the ‘Lee x SuneetVarma’ collection is also being sold in Shoppers Stop department stores and online through both Lee’s website and Tata Cliq Luxury. The collection’s launch is spearhead by Ace Turtle, Lee’s exclusive licensee n India.

The collection fuses Lee's iconic craftsmanship with my couture sensibilities to offer a new perspective on denim fashion in India, adds Varma.

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24 August 2024, Mumbai

A globally renowned brand registered in 32 countries, Tessuti has forayed into the Indian market by launching its collection of men's innerwear in Bengaluru.

Known for its Italian-inspired designs, Tessuti introduced three distinct series: the 100 per cent Organic Series, the Lenzing Modal/Cotton Elastane Stretch Gold Series, and the 100 per cent Cotton Silver Series. Each series is crafted to cater to diverse preferences and lifestyles, combining comfort, quality, and sustainability to redefine the men's innerwear experience in the country.

Tessuti’s entry into the Indian market coincides with a growing trend where consumers prioritise comfort and quality in their innerwear choices. The collection features innovative designs such as an easy tuck-in vest for a comfortable fit, an ultrasoft outer waistband for all-day ease, and a double-layered pouch for added support. The comfort fit ensures a perfect fit for various body types, making these innerwear options versatile for modern consumers.

The series showcases a variety of styles and colors, all made from sustainable materials like Organic Cotton, Lenzing Modal, and Cotton Elastane Stretch. Tessuti’s focus on premium fabrics, innovative designs, and sustainability caters to the evolving preferences of Indian consumers. Lenzing Modal, a sustainable cellulosic fiber, is celebrated for its softness and durability, while elastane provides stretchiness and strength, ensuring that the garments are both comfortable and long-lasting.

Ramesh Kothari, Director, Tessuti, emphasises the brand’s commitment to the ‘Make in India’ initiative and sustainable practices aligns with the increasing demand for eco-conscious products in the Indian market.

Highlighting the product features, Kothari adds, the collection features organic cotton interlock fabric, an ultrasoft outer waistband, a double-layered pouch, and a comfort fit. These elements ensure our customers feel confident and comfortable throughout the day.

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26 August 2024, Mumbai

The economic landscape in India is undergoing a subtle yet significant change, with signs of slowing consumer demand sparking concerns about the country’s growth trajectory. The Reserve Bank of India's recent data reveals a decline in consumer confidence for the second consecutive month, adding to the pressure on businesses and increasing calls for interest rate cuts. A lot of factors, including high borrowing costs, global economic slowdown, and waning consumer confidence, are casting a shadow on India's once-robust consumption story.

Inflation concerns and slowing demand

While inflation has recently dipped below the Reserve Bank of India's 4 per cent target, the respite is largely attributed to statistical factors and is unlikely to trigger immediate rate cuts. The central bank remains vigilant about food price volatility and its potential impact on overall inflation. Recent data has revealed a slowdown in factory output, coupled with a decline in consumer confidence for the second consecutive month. This trend, coupled with high borrowing costs and concerns about global growth, is prompting economists to urge the RBI to consider interest rate cuts to stimulate demand.

The fashion and apparel industry, heavily reliant on consumer spending, is particularly sensitive to fluctuations in consumer confidence. The recent fall in sentiment could translate to lower demand for discretionary purchases like clothing and accessories.

Meanwhile, economists at Nomura Holdings Inc. and Deutsche Bank AG have highlighted the growing signs of stress in the Indian economy and the need for policy intervention to support growth. They argue the time is ripe for the RBI to shift its focus away from inflation management to addressing growth risks. However, opinions on the RBI's likely course of action remain divided. While some analysts predict rate cuts as early as October, others say it will remain on hold, even if the Federal Reserve initiates rate cuts.

The way forward

India's policymakers face a delicate balancing act between managing inflationary pressures and supporting economic growth. The current environment calls for a nuanced approach that addresses both concerns while also factoring in the complexities of the global economic landscape.

As India navigates this challenging terrain, the fashion and apparel industry will need to adapt to changing consumer behaviors and spending patterns. Brands and retailers will need to be agile and innovative to capture the attention of increasingly cautious consumers.

The future of India's consumption story remains uncertain, but the current slowdown in consumer demand is a stark reminder of the interconnectedness of economic variables and the need for proactive policy measures to ensure sustainable growth.

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26 August 2024, Mumbai

Starting Sep 9, Amazon India has reduced seller commissions across several categories in anticipation of the upcoming festive season.

The company has lowered commissions across 59 sub-categories by 3-12 per cent, with a particular focus on products with low average selling prices (ASP), as per Amit Nanda, Director-Selling Partner Services, Amazon India.

Earlier in March, Amazon had increased commissions by 10 per cent-30 per cent across major segments, transitioning several categories like car electronics, keyboards, mouses, and personal care appliances from a flat fee to a tiered commission system based on ASP.

This time, it has reduced seller commissions across categories such as apparel, home furnishings, fashion, and sports, which often feature low ASP products.

For example, in the apparel category, the commission for ethnic wear has been reduced to 4.0 per cent-17.5 per cent depending on the ASP, down from the previous 7.5 per cent-17.5 per cent. The commission on men’s t-shirts has been lowered to 5.0 per cent-21.0 per cent from the earlier 13.5 per cent-21.0 per cent, while the commission on sweatshirts and jackets has been reduced to 8.0 per cent-12.0 per cent from 8.0 per cent-24.0 per cent.

Similarly, the commission on sarees and dress materials has been reduced to 8.0 per cent-23.0 per cent, compared to the previous 14.0 per cent-23.0 per cent.

This reduction will encourage sellers recognise the different economies they will be operating under this time, says Nanda. According to him, these lower fees might see greater adoption in Tier II and III towns, though there is also significant growth potential for their adoption in metro areas.

In April, Amazon launched a new vertical called Bazaar, aimed at selling low-priced, unbranded items, competing with platforms like Meesho and Flipkart-backed Shopsy. Bazaar will have a distinct commission structure, according to Nanda.

Beyond apparel, the new commission for cushion covers has been reduced to 3.0 per cent-10.0 per cent from the previous 8.0 per cent-10.0 per cent. The commission on home furnishings, excluding curtains has been lowered to 2.0 per cent-11.0 per cent, compared to a flat 11.0 per cent previously.

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 24 August 2024, Mumbai

Bringing the British fashion brand to India, fashion e-tailer Ajio recently launched Asos on its platform. This addition strengthens Ajio’s repertoire of top exclusive international brands, enabling it to deliver the best fashion worldwide, says Vineeth Nair, CEO, Ajio.

So far, Asos has launched over 3,000 options across its curated portfolio of own brands including Asos Design (menswear and womenswear), Asos Edition, Asos Luxe& Miss Selfridge. With fresh launches every month, the brand plans to expand its repertoire to 20,000 options in one year.

To promote Asos, Ajio plans to launch a 360-degree campaign across online and offline channels. The brand also aims to unveil a groundbreaking Mixed Reality experience in the coming days, offering an interactive showcase of its trendy products.

An integral part of Reliance Retail, Ajio is a fashion-first platform offering over 6,000 brands and 1.7 million styles with a wide variety of exclusive international brands, owned labels and homegrown brands.

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27 August 2024, Mumbai

‘Men's underwear index’, a concept humorously coined by former US Federal Reserve chairman Alan Greenspan, suggests that sales of men's underwear can serve as an unconventional but telling economic indicator. The theory says that during economic downturns, men tend to delay replacing their underwear, leading to a decline in sales. Conversely, an uptick in underwear sales could signal the early stages of an economic recovery.

Pattern across the globe

While the index may seem lighthearted, it has garnered attention globally. The men's underwear index has been observed in various global contexts, offering anecdotal evidence of its potential validity. In the US for example, during the 2008 financial crisis, sales of men's underwear reportedly declined, aligning with the broader economic downturn. Similarly the ‘Lost Decade’ of economic stagnation in Japan during the 1990s saw a similar trend, with men's underwear sales remaining sluggish. The Eurozone debt crisis in the early 2010s also coincided with a dip in men's underwear sales in some European countries. These examples suggest that the men's underwear index might capture shifts in consumer confidence and spending patterns, particularly during periods of economic uncertainty.

A sign of economic turnaround in India?

Recent trends in India's innerwear industry seem to support the ‘men's underwear index’ theory. Leading companies like Page Industries (Jockey), Aditya Birla Fashion and Retail, Arvind Fashions, and Rupa & Co. have reported a consumption recovery in innerwear sales, particularly in the June quarter. This positive trend, coupled with other encouraging economic indicators like slowing inflation and a favorable monsoon season, suggests that India may be on the cusp of an economic turnaround.

Table: Q1 performance of innerwear companies in India

The growth in innerwear sales is attributed to various factors, including improved consumer confidence, increased footfalls in stores, and the expansion of e-commerce platforms. The industry is also benefiting from a revival in demand and efforts to improve inventory health at distribution hubs.

The resurgence of innerwear sales in India, along with other positive economic indicators, paints an optimistic picture for the country's economic future. While the ‘men's underwear index’ may not be a foolproof economic predictor, it offers an interesting perspective on consumer behavior and its potential correlation with broader economic trends. As India's innerwear industry continues to grow, it serves as a testament to the resilience of the Indian economy and its potential for a strong recovery.

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26 August 2024, Mumbai

E-commerce has experienced phenomenal growth in India in recent years, especially after the pandemic. This boom has had a significant impact on Indian economy, creating jobs, boosting consumer welfare, and opening new opportunities for businesses of all sizes. However, it also poses challenges, including competition, a level playing field, and concerns about the impact on traditional retail.

E-commerce growth story

The e-commerce sector in India is projected to grow at a CAGR of 27 per cent from 2018 to 2030. A recent report by the Pahle India Foundation highlighted even though it accounted for just 7.8 per cent of total retail sales in 2022, its rapid growth is a testament to its increasing popularity.

This growth is being driven by several factors. Foremost is the increased internet penetration. The number of internet users in India has grown rapidly, making it easier for people to access e-commerce platforms. This coupled with the widespread use of smartphones has further facilitated online shopping, allowing consumers to browse and purchase products on the go.

E-commerce also offers the convenience of shopping from home and accessing a wide range of products, attracting consumers, especially in Tier III cities where physical retail options may be limited. In fact, recent reports indicate that consumers in Tier III cities are leading the e-commerce charge, spending more time and money on online platforms compared to their Tier I and II counterparts. This highlights the vast untapped potential in smaller cities, driven by factors like increased internet penetration and changing consumer behavior. COVID-19 pandemic too gave a boost to the adoption of e-commerce, with categories like footwear and apparel seeing high adoption rates among new online shoppers.

Moreover what adds to e-commerce attraction is that online platforms often offer competitive prices and discounts, further incentivizing online shopping. And enhancements in logistics and delivery networks have made it possible for e-commerce platforms to reach even remote areas, expanding their customer base.

Impact on the Indian economy

The growth of e-commerce has had a positive impact on the Indian economy in several ways.

Job creation: The Pahle India Foundation survey revealed that e-commerce vendors generate approximately 15.8 million jobs, including 3.5 million jobs for women. Online retailers employ 54 per cent more individuals on average and nearly twice as many women compared to offline sellers.

Boost to consumer welfare: E-commerce has enhanced consumer welfare by offering a wider variety of products, competitive prices, and increased convenience.

Increased exports: E-commerce has enabled Indian businesses to reach a global audience, contributing to an increase in exports. Amazon, for instance, plans to enable $20 billion in exports from India by 2025.

Growth of related industries: The rise of e-commerce has spurred the growth of related industries such as logistics, warehousing, packaging, and digital payments.

MSME growth: E-commerce provides a platform for micro, small, and medium enterprises (MSMEs) to reach a wider audience and expand their businesses, fostering economic growth and entrepreneurship.

Opportunities and threats

The growth of e-commerce presents both opportunities and threats to businesses in India. Indeed e-commerce platforms provide businesses with access to a larger customer base, including those in remote areas. And online businesses can often operate with lower overhead costs compared to traditional brick-and-mortar stores. E-commerce can streamline various business processes, such as inventory management and order fulfilment.

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24 August 2024, Mumbai

A joint venture between Manomay Tex India and Vardhman Textiles has bagged aRs 3,000 crore contract to establish a large-scale textile production hub in Tripura from the state government

Aligned with the government’s vision of transforming Tripura into a key player in India’s textile sector, the project aims to attract investments, improve infrastructure, and create jobs in the northeastern region. The collaboration between Manomay Tex India and Vardhman Textiles is expected to introduce advanced technology and expertise to the state’s growing textile industry.

The project holds substantial significance for Tripura’s economy. It is expected to generate around 25,000 direct and indirect jobs, addressing the state’s limited industrial activity and employment opportunities. This boost in employment is particularly crucial for skilled and semi-skilled workers in the region.

In addition to creating jobs, the large-scale investment in the textile sector is anticipated to serve as a catalyst for broader industrial development in Tripura. The project will likely lead to improvements in infrastructure, transportation, and attract further investments, contributing to the state’s overall economic growth.

Furthermore, the government plans to leverage Tripura’s strategic location as a gateway to Southeast Asia by enhancing textile exports, especially to neighboring countries like Bangladesh.

The joint venture between Manomay Tex India and Vardhman Textiles combines the strengths of two well-established companies in India’s textile industry. Manomay Tex India is known for its high-quality fabric manufacturing, while Vardhman Textiles, one of the largest integrated textile manufacturers in the country, brings technical expertise and global distribution networks to the table.

The Tripura government’s strategy includes infrastructure development, investor incentives, and skill development programs to support the textile hub. Despite challenges such as underdeveloped infrastructure, the government’s commitment, coupled with the expertise of the partnering companies, is expected to overcome these obstacles, positioning Tripura as a significant hub in India’s textile industry.

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26 August 2024, Mumbai

A premium brand known for its trendsetting and high-quality men’s fashion, Reid & Taylor Apparel has selected Eggfirst as its creative, digital, media, and production agency.

This decision follows a competitive pitch process, positioning Eggfirst to assist Reid & Taylor Apparel in expanding its presence across both established and emerging markets in India, while enhancing the brand's creative appeal and fostering growth.

SubrataSiddhanta, CEO - Apparel & Retail, Reid & Taylor Apparel, states, Eggfirst's approach, characterised by personal connection, deep involvement, and unwavering integrity, ensures they deliver on their promises. This partnership will help elevate our brand with innovative and impactful advertising.

Hardik Patel, Managing Director, Finquest Group, adds, collaborating with Eggfirst will help Ried & Taylor build engaging communication aligning with its vision to connect closely with consumers.

A specialist in premium men’s fashion, Reid & Taylor Apparel offers a wide range of meticulously crafted garments designed for the modern gentleman. The brand is dedicated to creating high-quality readymade garments that cater to various fashion needs, with a strong focus on both formal and casual wear.

A rapidly growing agency, Eggfirst excels in semi-urban and rural advertising with a strong digital focus. The agency provides effective advertising strategies and ROI-driven solutions across sectors, helping brands connect with consumers throughout India.

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 24 August 2024, Mumbai

Expanding its ‘Masaba Bride 2024’ range, the House of Masaba has unveiled a new 100-piece wedding wear collection for both men and women. Inspired by the vibrant and historic ‘PuraniDilli,’ this collection is designed to immerse brides, grooms, and their families in the unique ‘World of Masaba.’

Masaba Gupta, Founder, says, the Masaba Bride 2024 collection is a tribute to one of the most inspiring places in the world—PuraniDilli. This collection is about discovering culture in the colors and chaos.It is the second edition of ‘Masaba Bride’ and offers a more extensive range of wedding attire.

Focusing on luxurious textiles and intricate embroidery, the collection features traditional techniques such as ‘baadlakaam,’ ‘peetakaam,’ and ‘nakshikaam’ to craft ornate, richly textured designs in bold colors and classic silhouettes. The collection is available exclusively on House of Masaba’s e-commerce platform and in its standalone stores.

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24 August 2024, Mumbai

The Hindustani Chamber of Commerce (HCC) is deeply saddened to announce the passing of KashiNathGadia, a revered patron and former president of the chamber. Gadia passed away on August 23, 2024.

Gadia has been an integral part of the HCC for over three decades. He was elected to the chamber's executive committee in 1989 and served diligently throughout his life. He held the positions of vice president from 1991-93 and president from 1993-95.

Gadia was a also trustee of several trusts associated with the HCC, his contributions were instrumental in strengthening the financial stability of these organizations.

As a member of the chamber's arbitration and conciliation panel, Gadia played a key role in resolving business disputes.

Gadia was known for his generous contributions to various initiatives of the chamber, school, and hospital. He was also actively involved in numerous educational, social, cultural, and religious organizations across the country.

Gadia was a respected businessman, a philanthropist, and a devout individual. His loss is deeply felt by the chamber family and the community at large.

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