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

2021 DEVELOPMENTS

Sales of designer apparel and footwear hold up well during the pandemic

Designer apparel and footwear suffered only a minor current value decline in 2020 due to the COVID-19 pandemic and lockdown policy. As travelling overseas was limited for Singaporeans, spending on luxury products, especially apparel, could fulfil the lifestyle needs of some higher-income consumers.

E-commerce sees dynamic growth and the acceleration of online store launches

With the temporary closure of non-essential retail outlets in the country there was a strong move towards e-commerce in 2020, which continued, although to a lesser extent, in 2021. Luxury brands therefore had to improve their online strategies in order not to lose sales.

Regional luxury online players emerge offering convenient payment solutions

As e-commerce gained more popularity during the pandemic, luxury brands, especially those in designer apparel, tried to utilise a wider number of online retailers to distribute their products to consumers. Some regional players emerged.

PROSPECTS AND OPPORTUNITIES

Solid growth forecast as consumers return to work and socialising and tourists return

Post-pandemic, it is likely that the recovery of consumer confidence and better economic outlook will fuel discretionary spending on luxury items. Affluent consumers are likely to show signs of “revenge buying” after being forced to reduce their spending during the pandemic, and hence will be more willing to splurge on big-ticket items such as designer apparel and footwear.

E-commerce set to maintain the gains made during the pandemic

Despite the reopening of store-based retailers, a move away from e-commerce is not expected, and this will remain another key channel for product distribution. Consumers’ purchasing patterns changed during the pandemic and new behaviours have been established, whilst consumers also feel more confident purchasing products online.

A higher proportion of sales of casual apparel and footwear expected

The product mix for luxury apparel changed during the pandemic, with loungewear becoming the default outfit for many consumers during home seclusion, offering a comfortable yet stylish alternative. Luxury brands were quick to capitalise by creating a “home leisure” fashion trend, whereby fashion collections included pieces such as loungewear, sleepwear and intimates.