Designer Apparel and Footwear (Ready-To-Wear) in India

2021 DEVELOPMENTS

Rise in demand for athleisure wear/comfort wear due to home seclusion

Since many Indians were forced to isolate for most of 2020 when the pandemic emerged and for a brief period in 2021 due to the second wave of COVID-19, they conducted most activities including work, study, and exercise from their homes. This resulted in strong demand for athleisure wear across different price points as this type of apparel offered comfort to home-confined consumers.

Shift from skinny or slim jeans to comfortable baggy options

Due to the prolonged periods of time spent in the home by Indians during the pandemic-induced restrictions, the greater propensity for wearing lounge/athleisure/comfort wear has meant that consumers are no longer enthusiastic about wearing restrictive or tight-fitting apparel. This has resulted in the disappearance of the skinny jeans trend, with consumers now seeking baggy or straight fit and more comfortable jeans options which allow for a greater degree of comfort.

Return to weddings and festivals following stabilisation in 2021 supports greater demand for occasion-based apparel and footwear

Since the impact of the pandemic’s second wave in India from Q2 2021 has waned, demand for designer apparel and footwear (ready-to-wear) has improved over the remainder of the year, with volume sales rising compared to the severe declines of 2020. The improving performance is linked to the fact that in line with an easing of restrictions, all major festivals in addition to the wedding season were permitted to resume within the country.

PROSPECTS AND OPPORTUNITIES

E-commerce players remain bullish

E-commerce players are focusing on expanding their presence within the designer apparel and footwear space, driven by the closure of non-essential stores at the height of the pandemic in India. Players such as Ajio Luxe, Darveys, TataCLiQ Luxury and Nykaa.

Potential holiday opportunities for 2022 to benefit demand

Demand for designer apparel and footwear (ready-to-wear) is predicted to gain stronger momentum over the course of the forecast period to fully recover to pre-pandemic retail volume sales levels by 2024. This scenario will be supported by the likelihood of the dropping of restrictions in 2022 and the opening of international borders depending on the threat of new variants, ultimately resulting in a return to overseas travel by Indians following two years of pent-up demand.

Rise in sustainability

The pandemic and the increasing impact of climate change have made local consumers increasingly aware of sustainable issues linked to the fashion industry, a trend that luxury players are also now realising. Hence, players such as Kering (Gucci, Bottega Veneta) are investing in projects with sustainability at their core.