For the first time, Zara owner Inditex’s sales dipped by 28 per cent due to COVID lockdowns and related staggered reopening during FY21. The fashion house had consistently posted profits in India since entering the country in 2010.

Revenues of Zara’s joint venture partner with Tata, Inditex Trent, which runs 21 stores in India declined to Rs 1,126 crore in FY21. The company posted a net loss of Rs 41 crore as per Trent’s annual report. It had posted a profit of Rs 104 crore in the previous year.

FY21 started with significant uncertainty for Trent due to the pandemic. The company’s operating profit was hit by a drop in sales and restaurants profits due to COVID-related lockdowns and trade restrictions.

Trent also operates Massimo Dutti stores in India whose revenues dropped by 50 per cent to Rs 34 crore in FY21 with a net loss of Rs 8 crore.

Although malls reopened in rest of the country in June major markers such as Delhi and Mumbai allowed malls to reopen only a month later. E-commerce sales picked up as malls and stores remain closed for the entire first quarter of the financial year 2021 but could not make up for the revenue loss due to the closure of brick and mortar stores.

Zara is also facing tough competition from other luxury apparel brands in a highly crowded market. The brand just opened one store in the past four years and closed one store in the last year.

18th June 2021, Mumbai:

The core lingerie business of women’s wear brand Enamor has grown to 25 percent of its total business due to the rise in online sales during the pandemic. The brand‘s lingerie business increased from 5 percent of its total sales in May 2020 to 25 percent in May 2021.

As per Shekhar Tewari, CEO, most of the demand was driven by the adoption of a ‘work from home’ culture by consumers including those returning to homes in Tier II and III cities.

Enamor’s share of online business also grew by between four and five times year-on-year as of May 2021. The brand retails online from its dedicated e-commerce store. The brand recently launched its spring/summer 2021 collection for ‘Enamor Essentials’, a line of loungewear featuring printed tops and loose trousers The collection bridges the gap between athleisure and pajamas by mixing mandala prints with stripes and other subtle details.

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4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

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Myntra’s art and handicrafts brand, Taavu’, witnessed 2.5 times growth during the pandemic since its inception The Bangalore based firm, which works with over 10,000 artisans is likely to associate with 5000 more artisans this year.

Myntra had launched Taavi as a home-grown Indian art and handicrafts brand in 2019 and has been associated with the artisans through it. So far, the brand has tied-up with over 10,000 artisans and continues to explore new partnerships and opportunities across the country.

Taavi is helping the artisan community by steadily processing fabric orders so that they can continue to safely work through the lockdown and prepare the bulk fabrics, giving them a financial cushion. It has also worked out a system to expedite the payments cycle to 10 days as opposed to the industry norm of 45 to 60 days while relaxing delivery timelines.

To prevent Amazon, Flipkart and other foreign-funded e-commerce companies from indulging in unethical business practices and controlling India’ retail business, Confederation of All India Traders (CAIT) has launched an ‘e-commerce purification week’ from June 14- 21, 2021.

During this week, trade organizations across the country will handover a memorandum to district collectors in all states. Additionally, trade delegations will urge chief ministers and finance ministers of respective states to set up a monitoring mechanism for e-commerce trade for ensuring strict implementation of FDI in e-commerce policy.

The trade associations will also urge Prime Minister Narendra Modi and Commerce Minister Piyush Goyal to direct CCI to initiate an investigation into the business module of Amazon and Flipkart, issue a fresh press note removing the flaws of Press Note 2, and set up of a regulatory mechanism at the Centre to monitor e-commerce business in India. The CAIT has also declared to launch a digital signature campaign across the Country on this issue.

CAIT says, in the last one year, there has been a 36 per cent growth in India’s e-commerce business, especially in personal care, beauty and wellness business, 70 per cent in grocery, FMCG products and more than 27 per cent in electronics.

The exponential growth in usage of smartphones in India is contributing majorly in expansion of e-commerce business, it adds.

The trade body alleges, foreign companies like Amazon and Flipkart defied all the laws of the country by adopting predatory pricing, deep discounting, loss funding, controlling inventory, and giving preferential treatment to sellers, killing smaller businesses in India.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

TOP 5:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India, Noida

Return to homepage

Since the last week, Amazon is seeing increased traffic across all categories, notes Amit Agarwal, Country Head. Easing of lockdowns has helped the e-commerce company boost sales though the company does not expect overall sales to grow due to the broader stress in the economy.

Also, the company does not expect a ‘dramatic’ change in consumption behavior in the next couple of weeks though traffic on its platform continues to be robust. Larger states in Maharashtra and Karnataka have allowed e-commerce companies to operate over the last 10 days, which would help them navigate logistical hurdles as well restart operations, says Agarwal.

He urged the government to allow home deliveries on both e-commerce platforms and local stores as online delivery is one of the safest ways to buy goods. Amazon has set up around 50,000 local stores on the platform. The company has also vaccinated 100,000 frontline associates, employees, and their dependents. It continues to see higher demand for essentials, besides electronics and other necessary products for working from home.

Mensa Brands, the new venture launched by Ananth Narayanan, Former CEO, Myntra plans to tap into India’s growing e-commerce market by building brands for online retailers like Amazon.com Inc. and Flipkart. The startup aims to acquire 50 brands over three years and build the expertise to scale them. The retailer is targeting brands in segments like home, personal care, beauty and apparel with $1-10 million revenue. It has already raised $50 million from investors like Accel, Falcon Edge Capital, Norwest Venture Partners, etc.

Through this venture, Mensa Brands aims to replicate the success of Thrasion in the US like other startups such as Global Bees, Bzaar, GOAT Brand Labs, 10club etc. The founding team at Mensa, has a combined experience of over 60 years in Indian and global e-commerce. The company is passionate about growing and scaling brands via the application of growth marketing, operational improvement and working capital management.

Online fashion store Velvet Duck has launched its first line of loungewear for women.

As per Fashion Network, the new range features lounge wear ranging from casual, patterned pyjamas and matching sets designed for lounging at home to loose embroidered kaftans designed to fit work-from-home demands. The colour palette ranges from soft hues of blush pink and yellow to bolder pieces such as a bright red belted kaftan.

Based in Gurugram, Velvet Duck retails a wide range of western and fusion-style womenswear on its e-commerce store. The brand also recently launched its summer collection which features summer dresses, blouses, camisoles, jumpsuits, and co-ord sets in printed cottons and sheer textiles.

Velvet Duck launched its e-commerce store in February this year. The new brand takes its inspiration from Indian art and culture and works with its in-house team of specialists to create prints and embroidered details.

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At the DB Access Global Consumer Conference held on June 7, Judith McKenna, President and CEO, Walmart said, though the retailer plans to launch an IPO for its Indian e-commerce arm Flipkart, the timeframe has not been decided. Walmart acquired a 77 per cent stake in Flipkart in 2018 by investing $16 billion in the firm. In July last year, the retailer invested additional $2-billion in the e-commerce firm raising its value to $24.9 billion.

Flipkart is also set receive investments worth $600 million from the Softbank Group. The transaction, which may also see participation from Singapore's sovereign wealth fund GIC and Canadian pension fund CPPIB -- could raise Flipkart’s value to $32 billion.

India witnessed strong e-commerce sales since the outbreak of pandemic. The convenience of online shopping has prompted many shoppers to switch to e-commerce platforms who are also ramping up capacities to meet growing demands.

COVID-19 has also increased digital penetration across India, says McKenna highlighting the growth in users payment app, PhonePe. McKenna informs, the payment platform has just crossed the 300 million users mark in a five-year period. It is also venturing into new financial services such as gold insurance, mutual funds, etc.