EMERGING TRENDS IN FASHION RETAILING
Prof. T.Saravanan
AR School of Business
Introduction
The changing economy, technology, demographics, and psychographics are the root cause for this trend.
Most of India's population lies between 15-60 years, with the median age being just 26.
with more double-income households, there is now a higher disposable income available for discretionary spending.
Domestic Fashion Market
The domestic apparel market in India has growth trend of CAGR of 9%.
corporatized retail, which only makes up 8% of the retail sector, accounts for 19% of apparel retail. This contribution is expected to surge to an estimated 25%, over the next five years.
Domestic Fashion Market
People prefer all-under-one-roof formats like malls, multi-brand outlets, lifestyle stores, and even such alternate channels as online retail, mobile commerce, and direct selling.
A large number of international brands have set up shop in India and resulted in development of fashion retail.
Domestic Fashion Market
To capitalize from value-seeking consumers, most Indian retailers have launched, and are aggressively promoting, their private labels at smart prices.
International lifestyle apparel brands which are present in India usually offer a complete fashion range, i.e. accessories, footwear, and handbags apart from just apparel.
Challenges in fashion Retailing
Adversely affected by poor infrastructure conditions, such as roads, highways, and especially power supply.
The adverse condition of highways leads to additional merchandise carrying and holding time, and, in return, an increase in operational cost.
Challenges in fashion Retailing
The acute power shortage in major manufacturing hubs stretches production time and operational costs beyond estimates.
it is extremely important to maintain the right inventory through right product sourcing, at the right price and right time.
Challenges in fashion Retailing
Due to high real estate costs, there is usually limited space available at stores, leading to challenges of stocking and higher markdown costs arising from excess inventory.
the talent shortage within this segment is severe.
The lack of trained staff at the front end.
Trends in Fashion Retailing
Omni channel retailing will be the norm
The mobile wallet will continue to rise
Shoppers will get more personalized in-store experiences
Technology will be even more integrated in brick and mortar stores
Trends in Fashion Retailing
The number of mobile businesses will increase
Retailers will reinvent loyalty programs
Retailers will continue to invest in Big Data to track shoppers
Conclusion
Consumers will continue to evolve and demand novelty, value, and experience in fashion.
Deep insight about consumer buying behavior is becomes inevitable.
It is important to work towards reducing product turnaround time and improving supply chain, sourcing, and merchandising strategies to leverage this opportunity.
Conclusion
Retailers and manufacturers must work in coordination in order to construct effective strategies
