Benefitting in a big way from the COVID-19 pandemic, the $27 billion Indian e-commerce market is expected to grow by 40 per cent in 2020. Redseer Consulting expects the market to gross $38 billion in 2020. They expect the total number of online shoppers to jump from 135 million in 2019 to 160 million in 2020 owing largely to digitization caused by the pandemic. It expects the percentage of online penetration to increase from 3 per cent in 2019 to 5 per cent in 2020. Studies also show with growing Internet usage across India, new consumers are emerging from Tier II and III, even rural India. A study by Unicommerce states demand is slowly shifting. Currently, Tier II and beyond cities contribute around two-third of the total online consumer demand in India and this share is expected to rise in the coming years. The aspirational young Indian consumer in these cities is driving growth for the sector. Tier III and beyond cities witnessed 53 percent growth, making it the fastest-growing region.

E-grocery to lead retail growth

Present in 35 cities. India’s largest e-grocer BigBasket saw sales double from February to July. The e-tailer’s customer base grew by 80 per cent during this period while its existing customers bought 25 per cent more, goods. Now, the grocer has upped its growth targets for FY21by 40-50 per cent and is on track to achieve it.

Another B2B platform for over 22,000 kirana stores, MaxWholesale expects a 20-40 per cent spike in demand around the festival season driven by purchases of healthier/natural snacks, dry fruits, pulses, juices, mithai, chocolates, beverages, etc. From a Rs 25-crore revenue last fiscal, the company is set to achieve Rs 300 crore revenue this fiscal, informs Samarth Agrawal, CEO and Co-Founder

Expert say e-grocery category will be the fastest growing category in Calendar Year (CY) 20 with 70 per cent Year-on-Year (YoY) growth. This is significantly higher than the CY 2016-2019 average YoY growth rate of 50 per cent for this category.

As per Amit Monga, Co-Founder, ANS Commerce, this year offline retail has recovered by just 40 per cent, retail brands aim to achieve 30-50 per cent of their sales from online retail. His firm ANS Commerce works with 90 large brands, of which 30 were acquired in the last three months alone.

Sellers’ confidence increases

As evident from the 50-60 per cent increase in seller registrations on Amazon.in, sellers’ confidence in online retail is increasing. More sellers are registering themselves on e-commerce platforms as there has been a huge jump in demand for pet toys, athletic and open footwear, essential ‘stay at home’ clothes, furniture, gourmet food, TVs, laptops and sports equipment on Amazon.in, points out Manish Tiwary, Vice President, Amazon India.

Flipkart recently onboarded 50,000 kiranas to provide fast, personalized e-commerce services to its customers during the upcoming Big Billion Days sale. The company attributes the growing preference for online shopping to the safety and convenience attached to it. It has seen a significant spike in demand for its work-from-home essentials like electronic devices and furniture. Demand is also being propelled by kitchen appliances and medical equipment, a Flipkart spokesperson.

Meanwhile the Unicommerce report says: Major ecommerce players like Snapdeal have developed a strong foothold in these cities. The two big players, Amazon and Flipkart, are also focusing on targeting customers and sellers from Tier II and beyond. The ecommerce industry is also helping artisans and small retailers to get a platform where they can sell their products to consumers across the world. And goes on to add: “Most ecommerce companies have launched a website in Hindi and other regional languages to attract more consumers and retailers. During the festive season sale, most brands witness the maximum volume of orders from Tier II and III cities,”

With top brands focusing on health, the global fashion industry has witnessed a major upheaval in 2020. Garments reflecting the current health concerns are being launched by brands. Diesel launched a new Upfreshing collection that features antibacterial coating, writes Bel Jacobs in ‘A new way of living and dressing’ for BBC Style. In his article Jacobs writes what we wear reveals our values and aspirations particularly in times of turbulence. Perhaps, it’s now a time for change.

Streetwear brand Dumbgood launched a new range of facemasks featuring phrases like ‘I know too much about life to have any optimism’. There is an upswing in demand for survivalist clothing and modular designs that can adapt to different climates and protect their wearer. Nike’s ISPA is a prime example of this: In future, clothing is likely to be an extension of our homes and offer comfort and reliability amidst global turbulence, says Caroline Stevenson, Head-Cultural and Historical Studies, London College of Fashion. According to her, customers’ are likely to value cosy and ‘worn-in’ garments more.

Pandemic to alter growth ideas

The pandemic is likely to alter customers’ ideas of exponential growth, personal success, gratification and identity through consumerism. It can lead to more contracting, regrouping, reconsidering and refocusing on part of the consumers says Abi Buller, The Future Laboratory. Tom Berry, Director-Sustainability agrees, an increased awareness around conscious consumption may fuel further change.

As unconscious consumption is falling out of fashion, people are investing in higher quality items. However, this needs to trickle down through all levels of the market, says fashion historian Allison Pfingst.

Growing interest in pre-owned market

An understanding that whatever we have is sufficient for decades has spurred interest in making and mending clothes. Recently, British menswear brand Connolly hired Portobello Market vintage-clothing stall owner and stylist, Frank Akinsete, to upcycle pieces from previous collections. Similarly designer Christopher Raeburn launched Raefound, an evolving, non-seasonal range of unworn military clothing and accessories.

Raeburn urges young designers Kevin Germaier and Maddie Williams to develop new business models for repurposing and reusing old clothing. Berry agrees, there’s a significant interest in the pre-owned market as consumers not only want to buy pre-owned products but also use services that help them sell unused items.

The fashion industry needs to live up to its responsibilities and help create a more positive future, adds Berry. According to him, in 2030, everyday garments will become more utilitarian and include creative digital collections. Retail models will focus on made-to-garment and circular designs.

In the first five months of the current Iranian year (March 20-September 21), Iran exported 4,527 tonne of clothing worth $35,190,052 million to more than 29 countries. In the last Iranian year, the country exported to only four countries including Afghanistan, Russia, Iraq, and Yemen.

The Customs Administration spokesman noted, Currently, Iran exports its garments and textile to Iraq, Kuwait, Australia, Armenia, Azerbaijan, Uzbekistan, Russia, Afghanistan, Pakistan, Turkmenistan, Kyrgyzstan, Germany, Korea, Japan, UAE, England, Venezuela, Ivory Coast, Italy, Turkey, Canada, Qatar, Oman, Nigeria, Switzerland, Pakistan, Georgia, Spain, and Denmark.

Although the commercial import of clothing is prohibited, the amount of clothing import during this period hit less than two 2.5 tons worth $ 514,441 thousand.

Tarsus Mexico and Exposition Development Company, have announced new dates for sixth edition of Expo Produccion which will be held from June 15-17, 2021 instead of the originally scheduled March 2021 dates at Centro Citibanamex, Mexico City.

This biennial show will present its 6th edition at Centro Citibanamex, in Mexico City, facilitating a bigger event that will allow exhibitors to showcase their latest machinery, equipment, technology, parts, products, and supplies for the apparel, home and technical textiles industries. The exhibition is highlighted with a comprehensive conference program facilitated by leading experts in the industry.

Expo Produccion has become a leading international exhibition and conference which includes textile engineering, production management, design and marketing, as well as the development of new products, technologies and research of the production chain of the clothing, textile and fashion industries, home textiles and technical textiles directed to all Mexico and Central America professionals within these industries.

The first quarter revenues of Nike, the renowned American apparel and footwear maker, beat all the predictions made by analysts and experts.

The Q1 revenue for the world’s largest sportswear brand touched $10.6 billion – much higher than US $ 9.1 billion estimated by analysts. The sales rose by 6 per cent in China, while the e-commerce sales for Nike, during the quarter, shot up by a whopping 82 per cent – and it’s going to only get better with holiday season approaching.

The net income, for the quarter ended 31 August, jumped to $1.52 billion from 1.37 billion a year back. While the retailer has performed well in China and done remarkably well digitally, it has also not stopped launching new products even in these tough times.

Nike has been selling more merchandise directly to consumers and has been depending less on outside retailers. This has benefitted Nike a lot at a time when several bigwigs like J. Crew and JCPenney have filed for bankruptcy protection.

The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has elected new executive body for the year 2020-21. The election of central chairman, zonal chairmen, senior vice chairman and vice chairmen will be held on Sept 29, 2020 followed by the Annual General Meeting of the Association.

The all new members of the executive committee include Shahzad Saleem Asghar, Shahzad Azam Khan, Farrukh Iqbal, Muhammad Zubair, Muhammad Idrees, Hafiz Rashid Mehmood and M. Rafi Sony. The executive committee expressed the confidence that it will make all efforts to work selflessly in resolving issues faced by the industry in the best interests of PHMA members and in further enhancing and boosting the exports.

Shafiq Butt. Vice Chairman, PHMA said the new body would continue its efforts for the industry’s growth. He said that the knitwear apparel maintains the highest exports share, remaining at top of exports statistics every year despite adverse factors such as liquidity crunch and high costs of doing business.

The health crisis has hit demand for high-end handbags, apparel and accessories as more customers hold back on non-essential spending, forcing many companies to slow their expansion plans.

Ralph Lauren Corp plans to cut 15 per cent of its global workforce by the end of this fiscal year as the luxury retailer strives to lower costs and ride out the impact of COVID-19 on sales and shopping habits.

The New York-based fashion house, which has 530 stores globally, said the changes would see it move more business online. It has put the brakes on the industry's biggest ever merger, with France's LVMH trying to back out of its $16 billion deal to acquire Tiffany & Co.

The layoffs could result in gross annual pre-tax savings of about $180 million to $200 million, the company said. It expects to incur one-time pre-tax charges of about $120 million to $160 million in fiscal 2021. Britain's Burberry Group and luxury department store operator Harrods has also cut hundreds of jobs.

White Milano will launch a new fashion show to attract Italian and international leaders to the city. To be held from September 24-27 along with Milan Fashion Week, the show will present 200 exhibitors offering their collections inside its pavilions. It will also feature a series of parallel initiatives to re-spark attention from insiders and provide inspiration, generate business, infuse optimism in the business and throughout the city.

Among other initiatives, the show will also host WSM Fashion Reboot, a series of collaborations for promoting young talents and Exquisite Beauty, a cultural fashion and art collaboration, disclosing Afro-Italian fashion talents. The show will also hold ‘Fashion Meets Design,’ a roundtable conference on September 24 involving designers Andrea Incontri and Massimo Giorgetti, Gilda Bojardi, Director, Interni magazine, and Beppe Angiolini, Owner, Sugar Store in Arezzo

The show will host 200 brands including some Italian brands. The Focus on Italy section will include Salar, Dieffe Kinloch, Blue of a Kind, Edithmarcel, Federico Cina, Michele Chiocciolini, Gilberto Calzolari Delirious Eyewear, The Bespoke Dudes Eyewear and Maison Flâneur, a “Made in Veneto” brand. Also exhibiting will be Attic and Barn, Oof, Transit Par-Such and Pierre Louis Mascia.

From September 24, the digital White B2B marketplace will connect companies, showrooms, brands and buyers. The marketplace will offer brands participating in the physical show physical and virtual sets for showing their collections to buyers and a web platform for networking activities and managing B2B orders in real time.

Textiles minister Smriti Zubin Irani says textile ministry has designed a policy framework to promote e-marketing of handloom products, under which any willing e-commerce platform with good track record can participate in online marketing of handloom products.

Accordingly, 23 e-commerce entities have participated in the online marketing of handloom products. The government has also decided to continue the RoSCTL (Rebate of State and Central Taxes and Levies) scheme until such time it is merged with Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. For this purpose, the government has approved adhoc allocation of funds of Rs 7,398 crore for FY21 for issuance of duty credit scrips under RoSCTL.

Further, in order to boost exports in manmade fibre sector, the government has removed anti-dumping duty on PTA (Purified Terephtallic Acid), a key raw material for the manufacture of MMF fibre and yarn. Irani adds the National Textile Corporation (NTC) has been incurring operational losses since 2006- 2007 due to high input costs, high worker turnover, wage cost and less market competitiveness, among other reasons. She further said that despite infusion of huge funds, the corporation has not been operationally profitable

Under a revival scheme, the corporation spent Rs 5,500 crore to meet its various expenses like clearing up outstanding statutory dues, One Time Settlements (OTS) with Moreover, it spent an amount of Rs 1646.07 crore on modernization of its mills under the revival scheme.

Stephanie Phair, Chairman, British Fashion Council believes there is an opportunity for designers and businesses to reset and rebuild on better foundations. She urges the industry to negotiate business rate relief, rent relief, funding and loans with the government to help with cash flow issues. Phair, also the Chief Customer Officer at Farfetch, the luxury e-commerce platform, said COVID-19 has accelerated a lot of the conversations that had been happening in the industry before. According to her, both the designer sector and the high street will have to adapt to this new reality and be even more creative

Phair believes high street should create sustainable products at a good price points. The fashion industry must face up to the fact that it is a large contributor to carbon emissions including on production, waste and transportation, which all still need to be addressed, she says.

Despite all the challenges the industry is facing from the COVID-19 crisis and Brexit, Phair is confident of a bright future for the British fashion industry.