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

2021 DEVELOPMENTS

E-commerce establishes strong presence in designer apparel and footwear (ready-to-wear)

With non-essential brick-and-mortar stores closing in 2020 as part of measures introduced to limit the spread of COVID-19 (many of these stores were forced to close from the end of March to around July, depending on the location with some able to reopen at the end of June, while others had to wait until August), most boutiques and mixed retailers started to operate their outlets as local distribution centres for e-commerce sales as they rapidly responded to the dramatic expansion of online sales. Many consumers looking to purchase designer apparel and footwear (ready-to-wear) products had little option but to turn to e-commerce sites for their shopping.

Mixed retailers and brand-owned boutiques remain key channels

Despite the rapid expansion of e-commerce, mixed retailers and brand-owned boutiques remain the most important channels in designer apparel and footwear (ready-to-wear) in the Mexican market. Shoppers for these goods like to inspect and try on products prior to purchasing and receive advice from qualified sales staff in physical retail outlets.

Emergence of omnichannel strategies

With people confined to their homes and being forced to turn to online resources for a wide range of everyday purposes ranging across socialising, entertainment, work and study, as well as shopping, designer apparel and footwear (ready-to-wear) players have increasingly turned to digital tools to continue to engage with consumers during the COVID-19 crisis. In 2020, for example, Mercedes-Benz Fashion Week was cancelled as a physical event and instead became a virtual occasion broadcast on YouTube, while Hugo Boss launched its new online store with a Ribbon Cut Digital Party, in which brand managers and influencers were connected through a video call.

PROSPECTS AND OPPORTUNITIES

Brick-and-mortar stores to remain key, but lines between physical and digital blurring

Designer apparel and footwear (ready-to-wear) is expected to continue to see double-digit current value growth in both 2022 and 2023, though it is only set to reach pre-pandemic levels of sales in the latter year. Physical stores are expected to remain the main distribution channels in the category thanks to consumers’ desire to experience products first-hand and try them on prior to purchase.

COVID-19 crisis to have lasting influence on work practices and clothing

Informal styles and athleisure designed for comfortable wear at home are likely to register stronger performances than more formal attire going forward, given the increasing role of the home as a hub for a wide range of activities and the reluctance of many consumers to attend large social gatherings. Following on from the experiences of the COVID-19 crisis and the successful implementation of remote working and digital conferencing, many companies are also migrating to more flexible working schedules for their employees, not requiring people to attend the office every day or reducing physical meetings.

Balancing sanitation and consumers’ desire to try on products

Retailers will need to focus on providing safe environments for their consumers if they are to attract them back to their outlets. In 2021, department stores are still not allowing consumers to try on apparel or footwear due to COVID-19 regulations in place with the aim of reducing the risk of viral transmission.