It may take a few quarters for apparel sales to get back to normal, says Gautam Singhania, Chairman and Managing Director, Raymond. Singhania believes, “March will be a watershed month leading to 100 percent recovery”. Sales are improving as more people get vaccinated and step out.

Weekend sales are back to pre-COVID levels as consumers are willing to come out and spend on good things. Rebound in Tier II and III cities is higher as these were less impacted by the pandemic, adds Singhania. The company is present in towns that have 50,000 people and a distribution network that goes to over 500 towns.

Low impact of increasing raw-material prices on apparel business

As raw material pricing forms a lower percentage of the product overall costs, a rise in cotton prices will not impact the company’s apparel business, adds Singhania. He agrees that input costs are increasing and brands have to take this in their stride. Recovery in the apparel business is slow and it may take a couple of more quarters for things to get back to normal, he adds.

Buyers moving away from China

US customers are moving away from China to India, says Singhania. He affirms US customers would look to India as an alternative to China. Businesses in the country are back to pre-COVID and the company has a strong order book, adds Singhania.

In the future, the company aims to recover apparel sales and remains cautiously optimistic. However, Raymond has recovered over 75 percent of physical apparel sales and does not plan to continue with online operations.

Indian retailers are collaborating with brands to set up physical stores where both can house their products. For instance, Fabindia and Hidesign have set up a store in Chennai’s Pondy Bazaar. Others are working to leverage the online opportunity by facilitating deliveries while some are deepening their presence in smaller towns and cities.

Women’s wear retailer FabAlley and Indya plan to explore the brand store model while Benetton India is gearing up to launch an online store. The company also plans to set up brick-and-mortar stores in Tier II and III cities that have recovered faster. For instance, it will set up two more stores in Bihar to take the tally in the state to ten. Of the nearly 40 planned stores for 2021, 10 have been opened.

Select CityWalk has partnered most of retail brands, including premium ones like Chanel and Dior, to facilitate home deliveries. The mall is also introducing a personal shopping service wherein the staff will help customers locate stores that sell the products they require. Inorbit Malls has introduced video shopping and curbside pick-ups for customers reluctant to step out while Oberoi Mall in Mumbai has enabled a tech-backed version of its rewards program.

The retail sector in Bengaluru is now beginning to see green shoots of revival with a U-shaped recovery. While essential goods like food and grocery, followed by apparel, FMCD and electronics, furniture and home furnishings and QSR are seeing a V-shaped recovery, other segments like beauty, wellness and personal care and home essentials may take 2-3 more quarters for full recovery, said Anuj Kejriwal, CEO & MD Anarock Retail.

As per Economic Times, Bengaluru has been one of the most active retail markets in the country and is a major hub for retail fashion with most international and national brands making their way here.

In terms of organized retail, Karnataka presently has close to 50 operational malls across the top cities and Tier 2 and 3 cities, as per ANAROCK Research. Bengaluru alone has nearly 36 operational malls – the same number as that in entire MMR. Interestingly, tier 2 and 3 cities including Mysore and Hubli have also seen decent retail growth. Both cities currently have five operational malls each.

Going forward, data indicates that as many as six new malls spanning 2.5 mn sq. ft. area are likely to come up in Karnataka by the end of 2021. Five of these will be located in Bengaluru while one in Mysore.

Bengaluru has also attracted large private equity investment across the country due to the introduction of retail policy on 2016 by the

Inspired by international fashion culture, the essence of Duke’s spring/summer collection remains Indian.

Featuring floral and nature-inspired prints with clean cuts, the collection uses light and airy fabrics such as cotton linen, pique, single jersey sub and textured materials to offer customers a wide range of T-shirts, shirts, denim, trousers, tops, jeggings, activewear, sportswear, accessories, and footwear. Aimed at mid-income customers its priced between Rs 425 and Rs 2,499.

Crafted for the free-spirited young fashionistas, the collection offers casual light colors including soft blush, lime green and pale blue blended with strong earthy tones like burgundy and navy blue. The cotton or poly-cotton fabrics are a treat for casual lovers. Menswear collection also offers essentials range comprising tank tops and graphic printed T-shirts in cotton and rayon fabrics.

Soft designs, airy fabrics for a relaxed feel

Known for its clean fittings, Duke relaxes its tailoring for the spring/summer collection by offering softer designs, airy fabrics and relaxed textures. The brand deploys its expert workmanship and craft techniques throughout the collection with superb fits and interesting patterns. Full of strip designs, prints, embroideries around collars, the collection embodies Duke’s passion for precision and quality and offers complete value for money with user-friendly characteristics.

“The range reflects our commitment to meet the needs of modern customers through its sophisticated, bold designs and robust features, says Kuntal Raj Jain, Director, Duke Fashions. “Each garment reflects the vivacity of today’s youth who are our main target audience. We aim to offer complete value for money by launching international designs and styles at affordable rates,” he adds.

Classic colors, graceful styles for authenticity

Duke has also updated its exclusive Militaire collection ’21 for men by adding a wide range of T-shirts, polos, shorts, lowers, bermudas, and accessories. The classic color combination of this collection combined with graceful styling lends a touch of originality and authenticity to the range.

Shaping Indian industry with diverse styles and network

Winner of the President’s Award and three national awards: Excellent Quality Readymade Garments, Outstanding Entrepreneurship, and Quality Garments; Duke is known for standardized fits, superior quality, a wide range of styles. Incepted in Ludhiana in 1966, the brand was also crowned India’s Power Brand in the US. It is known for innovations and product quality, and has widely shaped the Indian hosiery industry. It connects with customers through online operations, over 4,000 MBOs and 400 EBOs across India.

While the entire fashion industry is still reeling under the effects of COVID-19 pandemic, Aditya Birla Fashion & Retail (ABFRL) has managed to outperform peers by focusing on the ethnic wear and inner wear segments.

Media reports say, the company has not only reduced its debt levels but also expanded store network, and ramped up e-commerce offerings.

Ethnic foray to define future success

One major milestone achieved by ABFRL is the 51 per cent stake it recently acquired in Sabyasachi Couture. Besides, the company has tied up with designer Tarun Tahiliani to acquire a 33 per cent stake in Tahiliani’s existing luxury couture business.

As a part of this deal, ABRL and Tahiliani plan to launch a contemporary men's ethnic wear brand. Performance of the new brand will define the success or failure of ABFRL’s five-year vision.

Currently, ABRFL’s share in the formalwear business is less than 55 per cent, with Louis Philippe, Van Heusen achieving 48 and 45 per cent of their revenue from casuals, sports and leisure wear. The share of formalwear in women’s westernwear brand Allen Solly is also limited to just 5 per cent.

Revenue grow to result in higher PAT

As per Economic Times, till December-end 2020, ABFRL had an outstanding debt of Rs 2,593 crore which it managed to reduce to Rs 580 crore by February-end. The company was able to achieve this due to the recent capital infusion of Rs 2,250 crore by various entities in it.

Of this, 1,500 crore was invested by Flipkart while the remaining Rs 750 crore worth was acquired from the recently-concluded rights issue – coupled with the internal cash flows.

From FY13-20, ABFRL recorded a 32 per cent compound growth in its revenue while Ebitda grew by 52 per cent. However, the company’s profit level remained subdued due the COVID-19 led lockdown.

In FY21, the company expects revenues to grow 7 per cent while Ebitda is expected to grow 14 per cent over FY20-23. Revenue growth may also boost the company’s PAT in FY22 as it expects strong growth in Pantaloons and innerwear segment and its pan-India distribution network.

ABFRL’s e-commerce channels are also expected to penetrate newer cities while capital infusion will result in high ROE and ROCE.

Store expansion to boost revenues

From FY 20-26, ABFRL aims to achieve a 15 per cent annual revenue growth with profits expanding 11 per cent, resulting in 3.4 times FY20 Ebitda and pre-tax RoCE of 25 per cent by FY26. The company also expects to generate Rs 1,000 crore FCF with its revenues from innerwear segment growing to Rs 1,500 crore by FY26. Additionally, revenue from ethnicwear segment is expected to reach Rs 2,000 crore by FY26 with 11 per cent Ebitda margin. To achieve this, the company plans to expand Peter England Red store network from 300 to 1,000 in the next three years. ABFRL also plans to open 500 Allen Solly Prime stores in next three years.

Bright outlook for new businesses

As per ICICIdirect, new businesses are expected to constitute 22 per cent revenue by FY26 from less than 10 per cent in FY20. Online/omni-channels are likely to grow fastest during the period and make up 8-10 per cent revenue in FY26.

For instance, revenues from Kotak’s ethnicwear business are expected to grow by 4-9 per cent over FY2022-23. The company also expects sales to grow two times of FY2023 sales compared to 2.5 times growth expected by TCNS Clothing during FY2023.

Kulin Lalbhai, Executive Director, Arvind Limited believes the industry will start seeing growth in the second half of 2021, compared to the second half of 2019, when sales were at normal levels. He believes, complete recovery for the industry depends on customers feeling safe in stepping out and social interactions returning to pre-pandemic levels.

Lalbhai said, the industry is witnessing around five to six per cent growth with each passing month with formal and occasion wear now seeing a comeback. He expects a further traction in occasion wear in Q1 of the next fiscal as the wedding season picks pace.

On manufacturing front, Lalbhai expects the higher cotton and yarn prices to be passed on to customers if the pressures don't ease in the next few months. He added that the supply chain bottlenecks which is industry is also dealing with s due to the sudden spike in demand, is likely to continue for a few more months.

Large organized retailers are reviving expansion plans after COVID-19 disruptions stopped store openings last year. Fashion, fast-food chains and electronics retailers will lead store openings over the next 12 months. Shubhranshu Pani, Managing Director-Retail Services, JLL India says, retail expansion has picked up for value retailers with casual and athleisure doing well. Everybody is focusing on Tier-II and III markets while Tier-I markets are yet to reach full recovery, he adds.

Retailers such as Benetton, Levi’s, Aditya Birla Fashion Retail with brands Louis Phillipe, Allen Solly, Peter England and fast-food chains such as Domino’s and McDonald’s have made progress with store opening plans. Benetton India aims to open 30 to 40 stores this year, says Sandeep Chugh, Managing Director. The retailer is eyeing markets such as Gangtok, Ranchi and Delhi.

Levi’s also overhauled its in-store experience. It undertook a massive store transformation project called RX3—resize, relocate and rejuvenate–for its store network. The result was that it shut 10 per cent of its bottom tail-end stores and opened the exact number of stores by the end of 2020. However, the average size of stores was bigger, locations were better, and the store format was upgraded to the global format, said Sanjeev Mohanty, Managing Director, South Asia, Middle East and North Africa, Levi Strauss & Co.

India’s garment makers have begun to increasingly focus on the online space, says a new CRISIL report. The textiles sector has aggressively adopted digital channels for business prospects with digital adoption growing from barely 20 per cent pre-COVID to 58 per cent currently in the textile sector. A similar trend is being observed in Gujarat as well, where apparel makers are aggressively moving towards online platforms to find buyers, says Rahul Mehta, Chief Mentor, Clothing Manufacturers’ Association of India (CMAI).

As per Gujarat Garment Manufacturers’ Association (GGMA), Gujarat is home to some 7,000 apparel manufacturing units, most of which are SMEs. Manufacturers Iin the state have begun to launch new product lines and fresh collections online as well. Mehta says, several clothing brands and manufacturers have started offering fresh merchandise online instead of merely pushing old stocks because of rising digital adoption by consumers. They also launched a B2B platform in November-end to help manufacturers list their collection online, and tap new buyers.

The platform can help connect buyers from across the country with manufacturers and also enable them to place their orders, adds Mahendra Bajaj, Chairman and Managing Director of an apparel manufacturing company that has developed the platform.

COVID-19 has reemphasized the importance of quality, especially while buying FMCG products. Earlier, Indian consumers let discounts determine most of their purchase decisions. However, now they are looking for value-added products, says a report by Bengaluru-based research firm RedSeer Consulting. As per Business Insider report, India’s overall e-commerce transaction value fell from April to June 2020, peak months of lockdown. However, it soon picked up as people avoided venturing out of homes and preferred buying their essentials online. RedSeer Consulting expects this trend to continue in 2021, advancing the growth of the online shopping in India, and compelling brands to focus on their online operations, says Mrigank Gutgutia, Director.

Gutgutia categorizes Indian online shoppers into two types. One, who buy their usual products irrespective of large discountsOnline shoppers move away from discounts focus on safety and quality being offered online, and other who focus more on the quality of products. Gutgutia says, this phenomenon is common across all tiers of cities.

Small cities focus on safety, quality

Consumers in Tier II and III are opting for online shopping because of the safe shopping experience it offers and guarantees on product quality. Discounts are one of the last reasons for shopping online in these cities, adds Gutgutia. Essentials were one of the most sought after categories during the pandemic. The category saw the highest average order value growth last year as more people in Tier II and III chose value over price, says RedSeer Consulting. This is pushing more Flipkart’s consumers to move away from being trial only to long-term consumers. The e-tailer aims to focus more on subscription only program in 2021.

DTC brands gain popularity as consumers opt for organics

Consumers are also moving away from aggregator e-commerce portals to Direct to Consumer brands as witnessed by the growth in revenue of brands like boAt, MamaEarth last year. As Mangesh Panditrao, Co-Founder, Shoptimize, a startup which helps businesses come online, says, COVID-19 has brought the focus back on quality and human wellness. It has reduced the importance of product price by increasing the popularity of organic food and wellness products, locally sourced produce, sustainably farmed goods, and vegan/cruelty-free products. The company’s clients have seen a 40 per cent increase in AOV (Average Order Value) this fiscal compared to last year.

Gutgutia believes this trend of online spending won’t change soon as more people plan to increase their spending on online shopping in 2021 too.

Keebee Organics has launched a new range of sustainable kid’s wear in India. The brand has created 100 per cent GOTS certified organic clothing that confirms the guarantees a socially and environmentally responsible manufacturing process. The collection includes basics and ethnic wear for boys, girls like jablas, dresses, swaddles, towels, kurta sets and lehenga sets.

Vandana Kalagara, Founder says, the company aims to provide options to customers to easy their way into sustainable practices. Its 100 per cent organic clothing supports fair and safe working conditions saves natural resources and reduces the carbon footprint. The company provides complete transparency in production processes to promote minimalism. Founded in 2016, Keebee Organics sells products through its website and e-commerce platforms including Firstcry, Myntra, Little Miffet, Little Muffet, Amazon, etc.

Department store chain Shoppers Stop plans to open 12-15 stores over the next six to nine months as the Raheja K-owned company expects footfalls to accelerate post vaccine rollout. The company will expand into cities where it is currently not present. It will also expand standalone beauty stores. Last quarter, it opened five standalone stores under this sector.

Meanwhile, the company also aims to transform Shoppers Stop into a truly omni-channel business by offering all its merchandise across its 86 stores to customers at any point in time. In the September-December quarter, the retailer generated 6 percent of its sales through the digital route, which included the company’s website, its app and sales through Amazon.

Shoppers Stop also launched its white glove service on the app last quarter which would offer customers personal assistance across its product ranges. It also plans to improve its app further to make shopping easier.

Shoppers Stop also aims to grow its private and exclusive brands in future. Private labels currently bring in about 12 percent of sales for the company. The company currently has over 15 private and exclusive brands across categories. Going ahead, the company aims to increase the contributions of private labels to its business, with a focus on Arcelia, while also looking to bring in more exclusive brands to Shoppers Stop.

Luxe brand hunters in India have never had it so good with brands like Jimmy Choos available at price of a Zara handbag, and Rs 25,000 worth sunglasses from Tiffany & Co can be had for Rs 8,000 from Instagram thrift stores. The luxury resale market is proving to be a boon for shoppers with limited budgets. The market has witnessed exponential growth globally and is expected to be worth $64 billion by 2024. In India, search for thrift stores on Instagram records 6.25 lakh posts and over 60 handles deal with thrifting.

Thrift stores selling authentic luxury brands

Amongst the thrift stores that have come up in India over the past two years are, stores specializing in authentic products from high-end brands. They usually source products directly from sellers or physical thrift stores. The products are authenticated, cleaned and photographed before being sold again.

Prominent amongst these stores is the pop-up by Chennai-based graphic designer Sruti Ashok called ‘The Relove closet, so far, the store has gained over 5,000 followers. Ashok sells high-end luxury brands such as Versace, Swarovski, Chanel, Roberto Cavalli, Tiffany, Chloe, YSL, etc priced between Rs 3,000 and Rs 5,000 on her instagram page and caters to women in mid-20s and 30s.

Higher prices for exclusive products

Ashok says, the price of thrift products often depends on their use, wear and tear and visible defects. Style is also important as a limited edition product often commands higher price.

Kohima-based Jungshi Imti has been involved in thrift business for over two years. His instagram handle @Chichi n Co sells luxury bags, shoes, T-shirts, and dresses from brands like Louis Vuitton, Marc Jacobs, MCM Worldwide, Kenzo, Givenchy, Guess and Balenciaga. He authenticates the products with a certificate. In case, it is not available, he advises buyers to look the product code in the insides of the bags or shoes. This code can help trace the products’ manufacturing date and country of origin from the brands’ website. Brands like Louis Vuttion also provide buyers a date code which helps in authenticating the product.

A fast changing trend

Knowledge also helps thrift sellers determine the authenticity of their products. For example, Riva Rokade, a student of styling and mass communication, scouts through heaps of clothes before making her final selection. The Mumbai-based stylist launched The Vintage Laundry in Feb 2020 but had to shut it for two months due to the lockdown. She visits her suppliers to curate the clothes. However, this was not possible during the lockdown. Even after easing of restrictions, she could sell only five clothes every week. Now, she sells around 30 pieces every week. Most of Rokade’s clothes are sold within two or three days. She mostly sells jumpsuits, flowing pants, sweatpants and baggy shirts. Hoping for fashion trends to change soon, Rokade is geared up to face the challenge.