Recognised for its western casual brands like Jack and Jones and Vero Moda, renowned retailer Bestseller plans to close its Indian ethnic wear brand, Indifusion, after three years of acquisition. This move is influenced by the significant losses faced by the brand in recent times and declining demand in the ethnic wear sector, as reported by retailers and mall owners.

Bestseller had acquired Indifusion during the peak of the pandemic in a distress sale, despite lacking prior experience in operating an Indian wear label. An industry executive noted the inherent challenges for a predominantly western brand company in understanding and navigating the nuances of the Indian wear segment, a task exacerbated by the overall slowdown in discretionary spending, particularly in apparel.

In recent years, there has been a noticeable shift in consumer preferences from traditional ready-to-stitch clothing to ready-to-wear garments. National players such as BIBA, W, AND, and Global Desi have played pivotal roles in driving growth in branded apparel, with a significant transition towards ethnic and western wear. However, despite the global fashion brands' push for westernised clothing in the Indian market, ethnic wear remains the dominant category in women's wear, comprising 71 per ent of the market share.

Devarajan Iyer, CEO, Lifestyle International, highlights, the current stagnation in the growth of the ethnic wear segment over the past year contrasts sharply with the double-digit expansion witnessed in western wear. This trend underscores the changing consumer behavior, where ethnic wear is increasingly reserved for special occasions rather than everyday wear.

Pakhi Saxena, Head-Retail and Consumer Products, Wazir Advisors, affirms, despite these challenges, the women's ethnic wear market is projected to grow at a CAGR of 8 per cent between FY23 and FY26 to surpass $22 billion by FY26.

According to her, consumers are gravitating more towards clothing that blends cultural influences with comfort and convenience, a trend reflected in the rising popularity of fusion wear.

Characterised by its contemporary interpretation of traditional garments, fusion wear has seen remarkable growth driven by factors such as the increasing female workforce, the younger demographic's embrace of traditional wear with modern twists, and the influence of fashion and entertainment industries. From pairing basic kurtis with jeans to experimenting with sarees and lehengas teamed with unconventional tops, fusion wear continues to evolve in response to changing fashion trends and consumer preferences, says Saxena.

As direct-to-consumer brands gain traction and more individuals embrace western and fusion wear, the traditional wear segment faces challenges. However, with innovation and adaptation, the industry remains poised for transformation and growth in the evolving fashion landscape.

India's foremost technology-native retail company, Ace Turtle has bagged the prestigious Images 'Award of Excellence' at the India Fashion Forum 2024.

Organised by India’s prominent retail industry publication, Images, this accolade celebrates Ace Turtle's pioneering strides in establishing itself as India's premier fully digitally integrated retailer.

The Images Award of Excellence recognises trailblazing companies that have reshaped the retail landscape. Ace Turtle's steadfast dedication to seamless omnichannel integration across all facets of its operations - from online shopping experiences to in-store customer engagement - deeply impressed the jury.

Nitin Chhabra, CEO, Ace Turtle, states, this award validates the company’s distinctive tech-driven operational model, its unrivaled omnichannel technology prowess, and inherent technology-oriented mindset. It is further developing several pioneering retail technology innovations harnessing emerging technologies such as AI and IoT.

As part of its commitment to spearheading the next phase of evolution in the Indian retail industry through its Retail Nxt approach, Ace Turtle has been at the forefront with its tech-powered business model and development of proprietary tech platforms, namely Rubicon & Connect. Rubicon 3.0, the latest iteration of the omnichannel technology platform, empowers Ace Turtle to maintain a unified view and facilitate effortless, optimised management of commerce operations across channels for its licensed global brands like Lee, Wrangler, Toys"R"Us, Babies"R"Us, and Dockers. This encompasses a single view of catalogue, inventory & price across channels such as online marketplaces, websites, endless aisles, social commerce, and conversational commerce, extending to customer order management, optimised fulfillment, deliveries, returns, and customer support.

Currently deployed across more than 110 stores of Lee, Wrangler, Toys
R’Us, and Dockers in India, the Connect 2.0 app digitises the store’s operations, streamlining numerous manual activities. The app empowers retail store teams by enhancing their efficiency and engagement through communications, training, helpdesk services, and workflows. It equips store teams to execute vital store activities like omnichannel order fulfillment and visual merchandising using their smartphones. Additionally, the Connect 2.0 app incorporates new modules such as Settlement Reports, Retail Key Performance Indicators (KPIs), Leaderboard, Store Weekly Performance, Training, and Attendance, enhancing overall operational effectiveness.

In its latest annual report, Spanish fashion giant Inditex announced plans to introduce two of its renowned brands, Bershka and Zara Home, into the thriving Indian market. The brand will launch the inaugural store of Bershka will be located in Mumbai while the Zara Home store will be launched in Bengaluru.

Known for its previous successful ventures like Zara in 2010 and Massimo Dutti launched eight years ago, Inditex now plans to target India’s youth population. Through its Bershka store, the company aims to directly challenge Reliance Retail's new store Yousta, which also caters to the younger consumer segment.

According to experts, Bershka will be primarily geared towards teens to mid-20s, distinguishing itself from Zara's target audience of 20-40-year-old fashion enthusiasts. Devangshu Dutta, Founder, Third Eyesight, a retail consulting firm, notes, with its emphasis on knits and casual wear says, Bershka's product range will perfectly align with the lifestyle of its intended customer base, thus ensuring minimal cannibalisation of Zara's market share.

Whether Bershka will be able to strike the right price points demanded by young Indian consumers remains to be seen. According to a recent report by Motilal Oswal, valued at Rs 2.5 lakh crore and constituting 57 per cent of India’s total apparel market, the value fashion segment is one of the fastest-growing in India. The market is being explored by consumers with rising disposable incomes beyond metro and Tier-1 cities.

A unit of the Tata Group's Trent, Zudio has witnessed remarkable growth since its inception in 2016-17, boasting nearly 400 standalone stores. The store’s success has spurred the entry of national retailers like Yousta by Reliance Retail, Style-Up by Aditya Birla Fashion and Retail, and InTune by Shoppers Stop into the affordable youth clothing segment. This competitive landscape underscores the significance of understanding and catering to the evolving preferences of Indian consumers in the fashion industry.

Poised to make significant strides in the market, European shoe brand AstorMueller with plans to expand its operations in India by unveiling new footwear and apparel brands, and setting up new stores, says Sandip Kanti Baksi, COO.

After launching brands like bugatti and TT.BAGATT in India, AstorMueller recently launched nu:beat, a brand blending fashion, music, and cultural essence. Crafted by Johanna Müller, a music enthusiast and scion of Europe's iconic Müller family, nu:beat debuted in India and is set for global expansion.

Further, AstorMueller acquired Salamander and is set to relaunch it in Europe this year before its Indian debut in FY25.

With nu:beat offering a diverse range of products across footwear, apparel, and accessories, AstorMueller plans to establish physical stores nationwide by the end of the financial year. It will initially open 8-10 offline stores in top-tier cities, alongside collaborations with MBOs like VegNonVeg and Superkicks.

AstorMueller also aims to double the offline presence of bugatti and TT.BAGATT, investing in stores spanning 1,200 - 1,500 sq ft. To enhance accessibility, the company plans to increase its presence in shop-in-shop setups across the country. By March 2025, it aims to be present in 70 SIS locations, up from the current 18.

Recognising the evolving market dynamics, AstorMueller is setting up a new manufacturing facility in South India to align with its goal of localising production. This will enable the company to shift exports from China to India, complementing existing production facilities in Agra and Rampur.

Renowned sports brand, Puma has announced esteemed fitness model, Milind Soman, as its new running ambassador for the Indian market. As a part of this collaboration, Soman will promote Puma’s Nitro range of footwear and apparel through diverse campaigns across various platforms. He will also participate in top running events and campaigns throughout the year, representing the brand with his unmatched vigor.

Emphasising on Soman’s pivotal role as a running icon in India, Karthik Balagopalan, Managing Director, Puma India, highlights, the association underscores the brand’s unwavering commitment to support athletes across all spectrums, regardless of age, background, or circumstances. Soman’s addition to the Puma would further propel the running movement in the country, adds Balagopalan.

Through this collaboration Soman aims to inspire individuals across the world to transcend their perceived limitations and surpass challenges. Recognising the importance of quality running gear in enhancing the running experience, he pledged to collaborate closely with Puma.