20 October 2023, Mumbai

Hennes & Mauritz (H&M), the Swedish fashion retailer, reported a 40% increase in sales in the year ending March 2023, retaining its status as India's leading fast fashion brand in terms of revenue due to competitive pricing.

Nevertheless, this growth was a drop from the 49% increase recorded the previous year, signifying a shift in consumer preferences toward brands like Uniqlo and Zara.
Outlines

In the fiscal year 2022-23, H&M's sales amounted to Rs 2960 crore, a significant jump from Rs 2115 crore in the preceding year. Their net profit also surged, increasing by 72% to reach Rs 43.6 crore.
H&M's online sales exceeded the Rs 1000 crore milestone, constituting 40% of their total sales, with ecommerce revenues totaling Rs 1178 crore.

The company inaugurated a new logistics center for online sales in New Delhi.
H&M specializes in fast fashion produced in-house and collaborates with designers for exclusive collections.

They maintain a substantial inventory of affordable everyday items sourced from countries like India and Bangladesh.
Nuances

Inditex Trent, H&M's joint venture with Tata, which operates 20 Zara stores in India, recorded a 40% revenue growth, surpassing H&M in profitability.
In the organized retail sector, sales rose by 34% during FY22-23 compared to the pre-pandemic era, driven mainly by quick-service restaurants, sporting goods, and electronics, according to the Retailers Association of India.

Sweet spot
India, being the world's second most populous country, remains an attractive market for apparel brands, with an increasing acceptance of western-style clothing among the youth.
Companies like Levi's, Uniqlo, and Celio are gaining popularity for their functional basics, unlike fast-fashion competitors known for rapidly changing designs.

Levi Strauss & Co recently named India as its largest market in Asia and the sixth largest globally.

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13 October 2023, Mumbai

Web 3.0, the third major evolution of the internet, is gathering mixed response from the fashion world. Some luxury fashion labels have embraced Web 3.0 communities by beginning to accept crypto payments, such as Gucci, Off-White, and Farfetch. However, many brands are hesitant due to the volatility of cryptocurrencies and the recent crypto crash.
Consumer delight
Despite some high-profile examples, consumer engagement with Web 3.0 activations is still on the low side, and it skews towards the young, affluent, male demographic. This is likely due to the fact that Web 3.0 is still in its early stages of development, and many consumers are not yet familiar with it.
The crypto crash has also sapped the forward momentum of the emerging Web 3.0 marketing landscape, as many CMOs are now skeptical of the technology. If cryptocurrencies don't regain the public's trust, it is unlikely that brands will embrace Web 3.0 for what it is.
Why Some Brands Are Fence-Sitters
Volatility of cryptocurrencies: Cryptocurrencies are known for their volatility, which can make them risky for businesses to accept.
Recent crypto crash: The recent crypto crash has further eroded public trust in cryptocurrencies.
Low consumer engagement: Consumer engagement with Web 3.0 activations is still on the low side.
Skepticism from CMOs: Many CMOs are skeptical of Web 3.0, especially in light of the recent crypto crash.

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23 September 2023, Mumbai

Fashion retailers are expected to face profit margin pressure in FY2024 due to higher discounts in response to a demand slowdown and increased expenses on advertising and promotion aimed at supporting revenue growth, according to an analysis conducted by ICRA.

Operating leverages

The operating profit margins of 11 listed retail entities, constituting 23% of the industry's revenue, are projected to decrease by approximately 120 basis points (bps) to 5.2% in FY2024.

This is despite an estimated 13% year-on-year (YoY) growth in revenue for the year, driven by the expansion of their network.

Observation

The rating agency currently maintains a stable outlook on the retail sector, suggesting that it expects the sector to remain resilient despite the challenges it faces.

However, the pressure on profit margins could impact the profitability of individual retailers and lead to consolidation in the industry.

Driving hard outcomes

Fashion retailers can mitigate the pressure on profit margins by focusing on cost optimization, improving product mix, and enhancing customer experience. They can also explore new opportunities, such as expanding into online retail and offering value-added services.

Overall, the outlook for the fashion retail industry in FY2024 is mixed. Revenue growth is expected to continue, but profit margins could come under pressure. Retailers need to be proactive in managing their costs and focusing on customer needs in order to remain successful in this challenging environment.

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13 October 2023, Mumbai

Apparel Group, a global fashion and lifestyle retail leader, won five major awards at the prestigious Images RetailME Awards ceremony.

The awards celebrate excellence and innovation in various retail sectors.
Sustainability and Beyond
Apparel Group received the Most Admired Responsible Retailer of the Year award, showing its strong commitment to sustainability and social responsibility.
Outstanding Brands; Four of Apparel Group’s brands were also recognized for their achievements in the retail domain.
The awards reflected the group’s dedication to innovation, sustainability, and excellence in retail.

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05 October 2023, Mumbai

CAMLA Barcelona, the renowned fashion brand celebrated for its distinctive designs and exceptional quality, is embarking on a spectacular expansion strategy. This marks a significant milestone in the brand's journey, promising a wider world of fashion.

Key Features

The brand plans to open 10 new exclusive retail stores in metropolitan areas and Tier 1 and Tier 2 cities across India.

The expansion strategy is tailored to resonate with the dynamic and varied fashion preferences prevalent in urban landscapes.

CAMLA Barcelona is also collaborating with commercial real estate partners to launch flagship stores and physical retail outlets.

Significance

CAMLA Barcelona's expansion journey is significant for several reasons:

It will enhance accessibility and welcome a diverse customer base.

It will deepen the connection between CAMLA Barcelona and its stakeholders.

It will solidify the brand's position as a leading fashion authority.

It will make a lasting impact on the fashion landscape by weaving a richer and more diversified narrative.

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Centrestage, Hong Kong: Pavneet Kaur, a rising star in the world of fashion hailing from India, has clinched the coveted People's Choice award at the Redress Design Award 2023. Her remarkable journey from a small town in Uttar Pradesh to the forefront of sustainable fashion is a testament to her unwavering commitment to sustainability and innovation.

Amidst the backdrop of the COVID-19 pandemic, Pavneet's extraordinary odyssey began when she stumbled upon discarded turbans, a traditional Sikh attire, concealed in her father's wardrobe. This serendipitous discovery served as the ignition for her transformation into a sustainable fashion visionary.

Her collection, 'EUTOPIA,' inspired by the solarpunk movement, captivated the fashion world with its vibrant color palette, symbolizing optimism for a sustainable future. These discarded turbans, skillfully upcycled into dresses, shirts, and jackets, showcase not only aesthetic appeal but also sustainability, as they are crafted from cotton and silk, double- and triple-layered for durability.

Beyond aesthetics, Pavneet's work resonated deeply with her local community in India, offering fair employment opportunities to local artisans and preserving the nation's rich arts and crafts heritage. She challenged traditional fashion practices, reimagining fashion's role in creating positive change.

Pavneet's dedication earned her the People's Choice Award, marking her journey with circular challenges, factory tours, and invaluable mentorship from industry leaders like Orsollad Castro, co-founder of Fashion Revolution. This journey, from collecting discarded turbans to claiming the People's Choice title at the Redress Design Award, inspires aspiring designers and fashion enthusiasts worldwide. Pavneet Kaur's story is a testament to the transformative power of vision, determination, and a commitment to a sustainable future in the world of fashion.