25 July 2022, Mumbai:

Premium personal care retailer Nykaa has remained unaffected by the consumption slowdown as consumers are not yet cutting back on discretionary items like skincare and cosmetics. 

Nykaa brings makeup, cosmetics & beauty product offers.

Anchit Nayar, the CEO, of Nykaa, says, customers are slightly more evolved as the slowdown hasn’t yet impacted consumption. Secondly, consumers consider beauty as a small luxury and have made it part of their everyday lives, he adds.

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The e-commerce company for beauty, wellness, and fashion products has partnered with over 3,000 brands and 22 global brands who sell their products on Nykaa’s platform.

Most of Nykaa’s huge portion of sales comes from smaller towns in Tier II and III cities as consumer behavior in these towns mimics that in big cities due to growing access to social media.

Around 60 percent of Nykaa’s sales come from smaller towns -- Tier II, and Tier III cities, indicating universal access to information, a lot of that through social media but also through platforms like Nykaa where a consumer sitting in a small town in Assam can get access to the same information in a large city like Mumbai, adds Nayar.
Currently, the most popular products sold on Nykaa are from active skincare brands like Derma Cosmetics indicating a shift in consumer priority towards beauty and wellness.

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22 July 2022, Mumbai:

Shopping for branded apparel has become more expensive with brands across India increasing the prices their winter collections last season and others hiking prices of summer collections in April. Retailers attributed the hike to rising raw material prices.

The prices of raw materials, especially cotton have increased by almost 70-100 percent, compelling retailers to increase MRPs by around 15-20 percent, point out experts.

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A few months ago, the Clothing Manufacturers Association of India (CMAI) estimated, that the summer collections for all brands this year are likely to become 15-20 percent costlier. And brands selling in the lower price range may tweak their product quality to reduce the price rise. However, they will not be able to completely avoid it, said CMAI

Brands suffer as inputs costs rise
Earlier, brands had refused to pass on their increased production costs to consumers due to sluggish demand. However, they were compelled to increase prices 5-10 percent due to various factors. In some Western countries, the price of commodities has set records in the last three-four decades.

The US and the UK now witness the highest inflation rate after 1982.
Meanwhile, apparel makers are struggling to survive due to rising production costs, hurdles in the supply chain, the crisis of raw materials, and hiked prices of utilities.

In Bangladesh, a major supplier of clothes to the world, the cost of garment production has shot up as prices of raw materials have gone up sharply.
Apparel prices set to rise again
Apparel retailers are looking to hike prices further. Fashion retailers like Shoppers Stop, Celio, and Arvind Fashions are looking to push up prices given the unabated rise in cotton prices.
Kulin Lalbhai, Director, Arvind Fashions and Executive Director, Arvind Limited says, they were unable to absorb the entire cost and were compelled to increase prices.

Similarly, menswear retailer Celio also indicated it may increase prices ahead of the launch of the next winter collection. If cotton prices remain as volatile as they are today, then a 5-6 percent price hike is possible.
Several apparel retailers hiked prices in the range of 5-15 percent towards the end of 2021 as they struggled with high cotton prices. Departmental-store chain Shoppers Stop, for instance, hiked prices 10-12 percent.

Interestingly, despite the price hikes, demand for apparel has remained strong, retailers say. However, there has been some demand dip in the value segment.
Enhanced demand to boost retailer’s revenues
Indeed, apparel manufacturers dauntlessly passed on their input costs to consumers. In the months of April and May, apparel inflation was as high as 10 percent as compared to the year before.

Still, it had no effect on sales. “Revenue recovery rate for most apparel and footwear players surpassed pre-Covid levels (100- 105 percent) from Q3FY22 onwards,” said a report by ICICI Securities.

The report further stated, as per the Retailers Association of India (RAI), they expect apparel and footwear retailers to demonstrate strong traction in revenue and earnings growth in the ensuing quarters driven by improved consumer sentiment and enhanced demand scenario for discretionary products.

And in an attempt to cash in on the customer demand revival, retail giants are chalking out big plans to add more stores and spread their retail network. Companies have a healthy store addition pipeline for the ongoing financial year as well.

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25 July 2022, Mumbai:

Consumers across the globe adapted online shopping during the COVID period. They began trusting the e-commerce market that exploded with delivery platforms and marketplaces witnessing new-user growth of 50 percent.

Studies indicate that the decade 2021-2030 will see D2C brands like Clovia, Atomberg, Furlenc attract significant attention and investments as they keep growing.

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The market thrives with the launch of super apps
Driven by Gen Next entrepreneurs, the current D2C market in India is thriving with the launch of super apps by big companies like the Tata group and Reliance Group. In fact, big players are in the frays, for example, the Aditya Birla Group is looking to set up a new subsidiary for building a portfolio of New Age, digital brands (D2C) across fashion, beauty, and allied lifestyle segments.

It has launched the ‘House of Brands’ business, TMRW to roll out and back digital businesses. TMRW is looking to create a portfolio of fashion and lifestyle brands by acquiring and incubating over 30 brands in the next three years.

The format also enables multiple founders to operate within its ‘house of brands’ platform that shares a common vision and capabilities, as shared by the company. Meanwhile, startups like Globalbees, Mensa Brands, Thrasio, Good Glamm Grup, and GOAT Brand Labs will join ABRFL to build a new brand portfolio, says Ashish Dikshit, Managing Director.

Boosting brand-customer relationships
D2C fashion brands serve customers across all marketing channels. This model does away with any middleman barriers such as wholesalers, retailers, or distributors and offers better prices and faster delivery times with higher profits.

D2C also enables fashion brands to utilize new technologies to boost brand-customer relationships and bridge the supply-demand gap. For example, the digitally immersive store introduced by premium lifestyle brand Van Heusen helps enhance the fit and fashion experience of shoppers.

Adopting omnichannel strategies to boost engagement
To reach their target consumers, D2C brands are leveraging the services of social media influencers. They are also adopting the omnichannel model to boost brand engagement and encourage repeat purchases with long-term loyalty.

Many new small and medium-size D2C players are entering the apparel retail segment. However, only a few have the resources, and detailed know-how to invest in design development, team building, raw material sourcing, and manufacturing.

Eastman Brands, the division of Eastman Exports Global Clothing, Tirupur has introduced the ‘White Label’ concept for the apparel segment, D2D (Design-to-Delivery) and D2C (Direct-to-Consumer). The concept allows a product or a service produced by one company to be rebranded by the other companies to make it appear as if they have made it.

Helps brands launch new products
Stakeholders believe the D2C segment enables new retailers or brands and labels to launch their products as no big product development, lead times, and investment is required. S Kannan, the CEO, of Eastman, explains, that the ‘small order quantity concept is going to be a massive business in the next few years and the company is trying to cater to this segment as soon as possible.

Ensuring small orders remains a problem for nearly all brands and start-ups and for that they keep searching for manufacturers/vendors who can support them, and work with small factories which are ready to take small quantities.

Product category also matters in the case of smaller orders like Bewakoof.com which focuses on T-shirts since it is comparatively easy to source and has fewer issues like fit. The brand works with a few vendors having 50 stitching machines.

Market to reach $100 billion by 2026
D2C brands are expected to be the biggest drivers of the retail market in India with their size expected to reach $100 million by 2026. In 2021, these brands clinched around 174 deals to raise $1.81 billion in the capital.

This not only resulted in the creation of thousands of new brands but also gave enablers and digital sellers new growth opportunities by launching new disruptive models such as e-commerce roll-ups, houses of brands, etc.

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22 July 2022, Mumbai:

Retailers believe, the revival of fancy dresses and smart suits is either a post-pandemic flash in the pan, or heralds a renewed trend that will last a few more seasons.

Across the world, shoppers are shopping for elegant dresses and blazers. Demand for formal wear items from Ralph Lauren Corp., Nordstrom Inc and Macy’s Inc has surged. High-end clothing rental service, Rent the Runway is seeing more women hiring bold outfits for special occasions.

In Europe too, more demand for refined dressing styles has surged.

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Brands launch work leisure ranges
There is great enthusiasm for celebratory dressing—color, print, and new silhouettes, opines Shea Jensen, Executive VP, General Merchandise Manager, Nordstrom.

In July 2021, the brand launched a survey of 2,000 Americans exploring how the pandemic had affected their fashion choices and it showed 41 per cent plan to dress comfortably for the remainder of their lives. However, 35 per cent also said they are more open to trying new styles post-pandemic

Brands are adding more stretch to their officewear apparel to be in line with the demand for work leisure. Consumers are looking for work-friendly and comfortable officewear, avers Arjun Puri, Director, KAS Group Asia. Activewear brands are strengthening their offerings in office-ready styles, while traditional fashion brands are also launching active lines.

Adding comfort to fashion
Leading fashion brands have launched collections reflecting the changed mindset of people going back to work but not back to formal crisp officewear. A hardcore sportswear brand like Adidas has expanded into the underwear and lingerie segment. The brand is using more technical fabrics to make innerwear, to give it the everyday look.

Since the pandemic outbreak, there was an interesting shift toward comfort fashion. The lockdown witnessed individuals opting to find comfort in fashion instead of the previously preferred impeccable uncomfortable clothes.

This was a gradual shift as the world adjusted to living in these unprecedented times and working from home with all its comfort. Satyen Momaya, CEO, of Celio shares, that people have taken to loungewear, athleisure apparel, and comfortable clothing. It was one of the most in-demand commodities in 2020 and 2021 and continues to be in 2022 too.

Brands revamp formals for millennial consumers
The workplace is definitely moving towards being more casual, points out Momaya. Celio is working on fabrics and styling in shirts that are semi-formal and comfortable. Knit and Tencel shirts, combined with cotton are being launched to cater to this need, he adds.

According to Momaya, the casualization trend is here to stay with new fits replacing the wardrobe from skinny to more relaxed fits. Consumers are opting for more smart casuals in pants and tees, and Celio’s 100 percent linen T-shirts made from the most natural and sustainable fabric, are in demand, he adds.

Similarly, Peter England consumers are shopping for garments with hand-feel and are flexible, says Manish Singhai, Chief Operating Officer. The brand is seeing increased demand for premium casual wear in lighter tones, smaller checks, and linen.

With COVID receding, consumers are once again engaging in socializing and connecting with each. They are looking to spend more time outside their homes, evident in increasing visits for retail and recreation, attending weddings, resuming physical and hybrid modes of office, and traveling.

This miscellaneous consumer behavior may lead to increased demand for casual, semi-casual, and semi-formal apparel along with formal wear opines Singhai. To cater to this demand, fashion brands are offering more revamped formals that appeal to younger, modern consumers, he affirms.

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22 July 2022, Mumbai:

The National Company Law Tribunal has directed the Bank of India to start the bankruptcy process for the cash-strapped retailer Future Retail. z

It dismissed Amazon’s allegations who accused Future Retail’s lenders of pushing the firm into insolvency by colluding with its founders.

The court also appointed an administrator to take over the management of Future Retail.

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The ruling enables Reliance to rebuild Future Retail’s business through an insolvency process monitored by the court.

As per India’s bankruptcy law, all money recovery cases against Future Retail will now restart. The ruling effectively stops Amazon from pursuing an arbitration case in Singapore against Future Retail, though cases against Future Retail’s founder Kishore Biyani and his other companies can continue.

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