Early summer arrival impact on Indian Apparel Sector
14 March 2023, Mumbai
India is becoming a more significant focus for the fashion industry due to a fast-expanding middle class and a rising industrial sector. These factors, together with India's solid economic foundation and rising digital sophistication, make the country too crucial for global businesses to ignore.
An attempt of trying & assessing the early arrival of summer in 2023 impacts the feeling one gets is that" It is a mixed bag so far as the Indian apparel sector is concerned. One would reckon here that on one hand, it could promote sales of summer apparel/clothing, triggering an increase in demand and revenue for apparel/garment producers and retailers.
Adverse impact
Summer rush; There are always cons to every situation in life and so will be the case with the early arrival of summer in 2023 with the likelihood of an adverse effect on the Indian apparel/clothing sector as it could lead to a shortage of finished goods/supply side constraints or disruption the supply chains with brands scrambling to make hay when the sun shines leading to falling service levels, OVERCLAIMS leading to business reputational loss.
There is a likely flip side to that, it has the scope to increase the cost of raw materials and production due to this elevated/un-fundamental demand, thereby resulting in raising prices for consumers.
Although we have to say here that, the effect will depend on a range of factors/issues e.g. consumer behavior, supply chain management, and competition prevailing within the sector".
Cash in on; There are indications that the early setting of summer setting 2023 may lead to increased sales of summer clothing for the Indian apparel brands able to offer timely vibrant and topical collections, case in point is brands like FabIndia and H&M, who have already started stocking up on their summer collections ticking all their boxes right are likely to come up trumps.
Setting in context
Our most recent State of Fashion report, created in collaboration with the Business of Fashion, lists India's rise as one of the top ten trends the fashion industry should monitor in 2019. (BoF).
Asia is seeing economic growth, but India will take center stage in 2019. Strong macroeconomic tailwinds are propelling the nation, and between 2018 and 2022, its GDP is expected to rise by 8% annually. Throughout the same period, India's middle class was predicted to grow by 1.4 percent annually, outperforming China, Mexico, and Brazil. India is therefore poised to transform from one of the most significant sourcing hubs outside of the Western world into one of the most alluring consumer markets.
According to research from McKinsey, India's clothing market will be valued at $59.3 billion in 2022, ranking it sixth in the world after Germany and the United Kingdom. Between now and 2025, the addressable population's total yearly income is anticipated to treble.
Paradigm Shift
Higher salaries will produce an entirely new class of consumers, according to Sanjay Kapoor, head of the Indian luxury retail company Genesis Luxury: "We are moving towards the 'gold collar' worker. It's a word used to describe well-compensated professionals who are delighted with their appearance and well-being and driving up consumption today.
Considering these factors, it should be no surprise that over 300 international fashion labels are anticipated to build stores in India over the next two years. But, India is still a challenging market with both prospects and difficulties. Just 35% of sales in 2016 were generated via official retail, indicating that the garment industry still needs to be more organized. By 2025, its share will be about 45 percent, which is still a tiny percentage.
S/S season
Time to discuss spring fashion trends for 2023! Ask anybody in attendance, and they'll tell you that Fashion Month was back at its most significant and brightest for spring/summer 2023, spanning four cities, more than 350 designer showcases, and more celebrity model moments than you can shake a roll of body tape at.
The article anticipates that some designers would altogether forego the frivolity of "real-life" fashion shows in favor of the digital experience after switching from perching on the front row to sitting in front of their laptops with a cup of tea for the previous few seasons, and the feeling one gets is that designers broadly realize that working together is always preferable.
Fashion & lifestyle
As we've already established, physically visiting events have their attractions, and we're happy that Fashion Month has, for the most part, once again become a time of exuberant omnipresence and full-blown extravaganza. But, It would be remiss if we fail to mention here the runway's most coveted guest: the smartphone. Despite my regret, fashion editors are not time travelers.
Notwithstanding the absurdity, we can only be in one place at once. Given the enormous number of concerts in various neighborhoods, if not entire cities, it is impossible to attend them all.
Because of social media, specifically Instagram and TikTok, we have greater access to the action than a backstage pass could and can see every significant moment as it unfolds. And the spring/summer of 2023 was revealed to have been carefully planned with viral moments in mind.
Sum up
Coming close to home; On the whole, the tangible challenging impact of the advent of the early summer/early winter exit in 2023 on the Indian apparel industry remains unpredictable/uncertain and it will only be fair & equitable that largely it will be dependent on a myriad of factors some known and some unknown, as for the longest time it has not happened that winter made an extraordinary early exit in the month of February itself to tick the box.
So we will rest here as your guess is as good as ours and the jury is out; Also, it will be premature to access with precision for the event that has not yet occurred.
