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

2020 IMPACT

Unavailability of store-based retailing during quarantine lockdown hits sales

One of the main reasons for the very negative growth recorded in sales of designer apparel and footwear during 2020 was the government-mandated closure of all non-essential retail outlets for an extended period during the quarantine lockdown that was enacted nationwide during the early stages of the COVID-19 pandemic. These store closures led to strong sales declines being registered in all categories of designer apparel and footwear, with all of the major brands in the category reporting huge losses over the course of the year as a result.

Social distancing has a negative impact on demand for designer apparel and footwear

The strict adherence to the principles of social distancing that emerged in Indonesia in response to the COVID-19 pandemic undermined demand for designer apparel and footwear during 2020. Among the major factors that had a detrimental influence on category sales was the cancellation of all fashion shows and related industry events for much of the year, a situation which reduced consumer exposure to new styles and new collections.

Major shift towards online channels seen over the course of the year

As mentioned above, the unavailability of store-based retailing was one of the major factors piling pressure on sales of designer apparel and footwear during 2020. In response to this, a major shift towards online channels was seen during the year, with social media becoming a much more important forum for the marketing of these products, while the sale of designer apparel and footwear shifted towards e-commerce.

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