Raymond plans bigger foray in ethnic wear market

ith an estimated 3.2 million weddings being held in the marriage season of November and December, demand for ethnic wear and wedding clothes significantly surged in India. Raymond as a leader in the premium textile business cashed in on this post-covid splurge and registered its highest-ever growth of 38 per cent with the sale of Rs 22 billion in three months that ended in September 2022. The company has increased its pan-India footprint and distribution network by unveiling 45 ethnic wear stores under the brand Ethnix over the past 18 months. And now plans to increase the number of outlets to 80 by the end of FY23 and 150 by the end of FY24, which will be in addition to its existing network of 1,500 stores, some of which will now sell ethnic wear products too.

Highest spike in post-Covid sales

Raymond currently has a market valuation of nearly Rs 105 billion and is going on adding to its existing 1,400 showrooms across the country. On an all-time high in the post-

Wpandemic period, Raymond recently recorded its highest-ever sales of around Rs 22 billion in the three-month period that ended in September 2022 where its sales were up by 38 per cent as compared to the same period in 2019. This sharp rise in sales in the September quarter was mainly because overseas clients ordered more suits and shirts along with the post-pandemic splurges on weddings and festivals in India.

“We have witnessed a sharp turnaround in our sales due to higher consumer spending in our stores following the COVID-19 pandemic. We have noticed that each customer is spending higher after Covid by as much as 25 to 30 per cent in our stores when compared to pre-Covid. We are on the cusp of record growth,’’ said Raymond’s chairman and managing director Gautam Hari Singhania in a recent Nikkei Asia, interview.

Thanks to the estimated 3.2 million weddings this season, the Confederation of All India Traders expects almost Rs 3.75 trillion in overall business for these sectors including clothing retail. This figure compares with Rs 2.5 trillion over the same period in 2019 in the pre-Covid days and to around Rs 3 trillion in 2022 as traditional ceremonies finally started to return. Real estate segment growing rapidly Raymond’s textiles and clothing segment is a major source of revenue as it contributes around 50 per cent revenue of the company. It has also diversified into other businesses in consumer products ranging from shaving cream to condoms and in technology such as auto parts. It now runs a real estate business using its land parcel in Thane and other joint development projects in Mumbai. It is currently doing so well that it plans to hive this segment off into a separate company for better focus. Raymond’s consolidated revenue has grown 64 per cent year-on-year to Rs 3,896 crore in the first half of FY23 while operating profit before depreciation and amortization (EBITDA) grew six-fold to Rs 533 crore. Net profit for the half year was Rs 244 crore and net debt was Rs 1,400 crore which is marginally lower and the company should be debt-free in twothree years. With a strong distribution network, supply chain and trust among consumers built up over the decades, Raymond has always been a cut above its competitors and those at the helm intend to keep it that way through inflation and turbulent post Covid years ahead.

Myntra launches ethnic wear app

Myntra has launched Runway Icons. This is a dedicated store on the app, to enable easy discovery of curated premium ethnicwear for its consumers. With an increased focus on elevating the overall experience and relevance for premium ethnicwear seekers, the store will present shoppers with a selection of customised trends and the latest fashion in the space.

Conceptualised and developed inhouse, Myntra’s Runway Icons is a one-stop digital destination that offers customers more than 15,000 styles from brands which include House of Pataudi, Koskii, Suta, Aachho, Odette, Bunaai, Ambraee, Scakhi and Truebrowns.

Runway Icons is for Myntra’s shoppers who have consistently shown a strong affinity towards the premium ethnicwear category. This proposition will offer a carefully curated selection of the most in-trend looks and apparel from the ethnic fashion ecosystem. With the rising popularity of D2C brands in the ethnicwear space, Runway Icons will give the brands a platform and an opportunity to present their collections in a unique manner to Myntra’s discerning shoppers. Brands and retailers’ focus on ethnicwear is continuously increasing.Demand for ethnic wear and clothes has significantly surged as compared to the last few years. Consumers celebrating festivals and attending weddings have turned to ethnic wear in a big way.

Force IX is on Myntra

from shoppers in Tier II cities and beyond. The marketplace has onboarded 25 international fashion labels and 50 foreign beauty brands in the past 12 months. Nearly 40 per cent of the demand for international fashion labels is driven by shoppers in Tier II cities and beyond.

B2B platform Nona Lifestyle aims at six fold growth

Within two years of launch, Nona Lifestyle has expanded operations to Ahmedabad, Ludhiana, and Siliguri to meet the demand across India and has added well-known brands such to its portfolio. Eventually, in 2019, the company expanded its presence in the UAE and registered a mainland company in Dubai.

Nona Lifestyle simplifies the buying and selling process of ready-to-sell fashion and lifestyle products. Nona Lifestyle is an allin-one marketplace that simplifies (Design to Delivery) sourcing, production and all supply chain processes while leveraging the potential of textile, accessories, and apparel manufacturing technology. To ensure high quality, the company performs multi-level quality checks and work closely with its vendors at every step of the buying journeyfrom raw material selection to designingand prompt deliveries.

Myntra imposes fees on frequent returners

Akshay Kumar’s fashion brand Force IX is on Myntra.

The collection consists of durable, economical and functional fashion staples inspired by the popular actor’s iconic sense of style. The brand offers men more than 70 options across a range of T-shirts, sweatshirts, caps, shirts, sweatshirts, cargos, joggers, chinos, co-ord sets, boiler suits, dungarees and accessories, targeted towards street wear and casual wear consumers across metros, Tier I and beyond cities. Women’s wear will be added soon. Myntra has a proven track record of accelerating the growth of celebrityled brands. Myntra offers a range of over 5,000 leading fashion and lifestyle brands in the country such as H&M, Levis, US Polo Assn., Tommy Hilfiger, Louis Philippe, Jack & Jones, Mango, Urbanic, and many more. It services over 19,000 pin codes across the country and currently houses more than ten celebrity brands such as HRX, Wrogn, Being Human and House of Pataudi, among others. Myntra is facing orders for international brands

For the current fiscal year, Nona Lifestyle aims at growing six fold. The business-tobusiness textiles, corporate merchandise, and soft furnishings business also aims at expanding its export operations.

The plan is to create a structured market around the globe and be able to export to 35 to 40 countries in the near future.The business has raised Rs 3.5 crores in seed funding in 2020 and has put the funds towards developing its technology to provide accurate data and automate its supply chain. The business went on to raise a further Rs 11 crores in a Pre Series A funding round.

Myntra, an Indian fashion e-commerce platform owned by Walmart’s Flipkart, is penalizing customers who return items too frequently.

In November of last year, Myntra changed its returns policy, charging a “convenience fee” of 299 rupees ($3.66) for customers who have return rates three times higher than average. The company also revoked some of their “Myntra Insider privileges” and warned them about account suspension if the high returns continue.

This change has frustrated customers and caused some to switch to competitors with free returns. Analysts believe that companies are curbing returns to save costs, due to the recent economic slump and increasing inflation.

Historically, online retailers in India promoted free returns and longer return windows to encourage shoppers. In India, 2540% of clothes sold online are returned, with one in four items sent back. However, the cost of processing returns is eating into the margins of online retailers. To cut the cost of returns, some companies are offering discounts to users who forfeit their right to return.

Myntra did not answer specific questions about the impact of return fees, instead, a company spokesperson said that “any change in policy or practice that we implement is undertaken keeping in mind the interests of the larger customer base and their response to it.

E-commerce emerges as key growth driver for lingerie

The online lingerie market is growing at eight per cent a year. The market is fragmented, with the presence of a few established players and many start-ups..

Many lingerie brands are entering the direct-to-consumer online retail space. They are also selling their products through third-party online retailers. Private brands largely or solely sell their products online, with the growing e-commerce industry and the online lingerie market. Many multi-brand pure-play online lingerie retailers have also entered the market. This will enable them to strengthen their position in the online lingerie market. Thus, high rates of internet and smartphone penetration contribute to the market growth. The bra segment is growing at a significant rate. The growth of this segment is attributed to factors such as the high price and replacement cycle of bras when compared to other types of intimate apparel. The trend of customizable bras is also driving the market. Moreover the penetration of mobile tablets and smartphones globally has boosted the growth of the segment.

The cost benefits for retailers operating in the online space are driving the market growth. Online lingerie stores offer a wide range of products. They also offer easy return and exchange policies, thereby attracting more consumers. Online lingerie stores also help consumers purchase bras with the right fit through apps. These factors will fuel the market’s growth.

Its blog answers all queries that women often face while shopping lingerie and innerwear. Its blog answers fashion and health questions about finding the perfect bra size, workouts for moms-to-be etc.Its overall marketing strategy has stayed away from following a functional approach and rather takes a fun approach, without coming across as sultry.

The brand currently has 52 exclusive brand outlets and aims at crossing 200 EBOs by the end of the next fiscal year.

Tata Cliq Luxury aims at seamless experience

Clovia builds up digital presence

Clovia’s digital media marketing is centered around social media, content marketing and performance marketing.

Catering to its young target audience who are more active on social media platforms, Clovia targets them by building engaging and asking them questions. It has also been focusing on personalised content. Clovia uses memes, topical and relatable content around ill-fitted bras to connect with its audience on Instagram.

The brand has been collaborating with influencers for humorous reels which also revolve around issues that women face with lingerie and their relationship with traditional mothers.The brand’s media mix is centered on digital. Some 85 per cent of Clovia’s sales are currently online and here contextual advertising is at its center.

Clovia believes today’s consumers can be engaged only through high-quality contextual content.The brand has also looked at content marketing as a key component in its approach.

Tata Cliq Luxury has a strong portfolio of global brands across categories and strives to offer customers a seamless and luxurious shopping experience.

The target audience is the top five million affluent households in India. The platform caters to a discerning and affluent audience segment that is digitally savvy and has a high disposable income. So the overall marketing strategy will continue to emphasise on establishing Tata Cliq Luxury as the go-to destination for online luxury shopping across categories as well as building brand equity.

The brand will focus on equity-based campaigns and launch new initiatives to drive content-led commerce. Given that the majority of its consumers are digital savvy, and keeping in mind its footprint in e-commerce, the approach is digital-first. The platform will continue to leverage digital and social in order to drive the brand messaging, deliver an engaging brand narrative, and reach out to both existing and new customers. The focus is on giving attention to the finer elements - craftsmanship and heritage, as well as tranquility and value of an experience.

The luxury e-commerce market is growing at an average rate of 100 per cent year on year. Some categories such as beauty, fashion and watches have high double-digit e-commerce penetration while other emerging categories, such as fine jewellery, home and so on, will witness growth in future.