adminser Indian fashion retailers are using technology to redefine their strategy and adapt to the new norm. Since covid-19 became a reality in the world, many economic sectors have been experiencing uncertainty. The world has struggled to understand this disease. The retail industry is the most affected sector of the economy, particularly in India.
Indian fashion retail is redefining its strategy and leveraging technology to adapt to the new norm.
Since COVID-19 became a reality in the world, there has been a lot of uncertainty around the globe as people have struggled to understand this disease. The retail industry in India is one of the most affected and faces multiple challenges that affect livelihood and the economy.
The Indian retail sector contributed 10 percent to the GDP in 2019 and employed around 8 percent of the population. In 2019, the Indian retail industry ranked fifth in the world. It ranked 63rd on the ease of doing business organizing and 73rd at the United Nations Conference on Business-to-Consumer Trade and Development.
Malls, markets, and shopping centers were closed long before lockdowns were announced during the initial phase of the pandemic in India. Fashion retail suffered a major slump despite the fact that demand for essential products increased.
The fashion retail industry missed out on the best period of sales for non-discounted, new arrivals during the initial phases of the lockdown. The lockdown and pandemic that followed halted manufacturing and disrupted the supply chain, causing the fashion retail industry to crash. The woes were exacerbated by the migration of workers and the fall in demand. The Confederation of All India Traders (CAIT) estimates show that the retail sector has lost more than Rs5 lakh crore in May and Rs15 lakh by mid-July.
The fourth phase of unlocking is already underway. Still, problems persist in the fashion retail sector, as many states implement lockdowns at the state level or district level, further disrupting the supply chain. Due to these challenges, many major brands are using technology and redefining their strategy.
The reality is that the end-of-season sales are best delayed. Clothing and other products can last for many years. Fashion changes every season. Fashion is always changing. What’s new one year becomes old the next. The retailers lose the peak of the season, but many brands have pushed back the end-of-season sales to August or October in order to take advantage of the festive season.
Measurable discount strategies: The brands use heavy discounts to increase sales and profits, even with a thin margin. Due to the reduced demand this year due to job loss, pay cuts, and reverse migration, a heavy discount might not be as effective at pushing sales. Brands are offering measured discounts in order to maximize the value of sales.
Launches Despite the pandemic, brands launched new clothing lines, new stores, and new storefronts, maintaining the market’s high activity.
Automating the supply chain: The ultimate step taken by brands is to leverage various technologies. The goal is to achieve a variety of goals. By integrating technology into the supply chain and adopting new technologies, it is possible to reboot and strengthen this process. Technology is used to understand better the consumer journey and where they are in it. The adoption of technology helps brands gain a better understanding of the consumer journey and better data insights.
Omnichannel Approach: Even in India’s fashion industry, the physical store is still a major source of revenue. The average Indian consumer must be able to touch and feel the clothing he intends to purchase. Covid-19 has accelerated this change in behavior. Covid-19 has seen the ecommerce retail sector grow. It now accounts for 5% of retail sales, 48% of electronic products, and 29% of apparel. Many companies are now embracing omnichannel retailing to give consumers a seamless experience through an integrated ecommerce platform and physical marketplace. This is driving both online and offline sales. Retail sales, D2C initiatives, and hyper-local ones are all generating positive responses in the industry.
Enhancing customer experience: It is important to stay in touch with your family and friends during a crisis. The same goes for customers. The industry tries to provide the best service possible by implementing various measures, such as building customer confidence, informing them about safety protocols at stores, and alerting customers of discounts.
Understandably, the average consumer will not be as outgoing as they used to be. It is not true that staying home alone will defeat COVID-19. In the last few months, many countries with higher populations have managed to control the spread of infection better. In India, we need to follow these examples so that everyone can work and live together in a safe environment. It will also allow the industry to function smoothly and provide space for economic growth and job creation.
