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Following the release of Burberry figures for Q3 FY2020/21 in January 2021; Gemma Boothroyd, Associate Retail Analyst at GlobalData, a leading data and analytics company, comments: “Burberry’s increased digital sales and impressive performance in APAC softened the damage from store closures and decreased tourism throughout Q3 FY2020/21, with retail revenue only falling by £31m to £688m. The brand is pushing full steam ahead with a full price strategy to strengthen its gross margins as it continues to focus on driving online demand, particularly from new, younger consumers. Burberry’s increased emphasis on online sales is also paying off, as digital full price sales growth was greater than 50%. With store closures averaging 7% throughout Q3, and this percentage set to be higher in Q4 (currently 15%) as most markets tighten restrictions even further, Burberry’s online capabilities will prove vital for its ability to navigate the uncertainty of COVID-19.
“Burberry’s digital-centricity has set the standard for other luxury players, with its introduction of features ranging from augmented reality shopping tools leveraging Google Search, to a virtual try-on capability on its mobile app. The brand is also harnessing digital platforms to drive engagement, through influencer partnerships targeting younger consumers, most notably its highly successful festive campaign with renowned footballer and philanthropist, Marcus Rashford MBE, which yielded the brand’s most liked Instagram post yet. Burberry’s partnership with the prominent athlete is well aligned with its change in design direction to incorporate more streetwear and leisurewear— a move which has protected the brand throughout the pandemic as these categories have come even more into focus. Such initiatives will continue to be crucial in Burberry’s attempts to strengthen its appeal amongst a younger demographic.
“A decline in international tourism has undoubtedly hurt Burberry, with EMEIA sales suffering a fall of 37% in Q3 FY2020/21, due to less travellers and an average of 19% of regional stores being shut during the period. With international shoppers no longer able to claim VAT back from purchases made in the UK as of 31 December 2020, the UK will become a less attractive destination for luxury shopping, meaning that Burberry will suffer from weakened demand from tourists who usually prefer buying the British heritage brand in its home market. While the impact of this legislation is only expected to hit in the longer term once travel has recovered, Burberry is already trying to lessen the blow by focusing on the strength of APAC sales, targeting local Chinese shoppers through dedicated collections, such as its recent Lunar New Year campaign.”
Now more than ever, luxury goods companies are seeking new ways to connect with their customers. They are reinventing and re-imagining themselves in ways that were previously unimaginable. Sustainability will be one of the main areas that fashion and luxury goods companies will rely on for their recovery. Global luxury brands have been investing significantly in ‘green’ technologies and other measures to reduce emissions from their factories. They are using carbon offsetting to contribute to the fight against climate change—compensating for emissions arising from their own industrial activities by participating in other schemes to make equivalent reductions.
The two stores will open in premiere locations in Bangalore and Haldwani and the people of will have an easy access to quality certified gemstones and jewelry at affordable prices. The Indian market and economy have begun to function in full swing in most parts of the country and owing to the same, Gem Selections is determined to gain the traction amongst its customers through these new launches.
Over the last month the COVID-19 pandemic has brought about hitherto unseen changes in Just like the shifts in societal and economic order. India – and the world – has been forced to deal with the ramifications of COVID-19, including, health consequences, economic crisis, job loss, etc. This has severely impacted consumer behaviour and the uncertainty has led to a drastic drop in the average spending of consumers. So, although, the festive season registered positive consumer sentiment, the pandemic infused cautiousness was apparent as well.
The forecasts seem positive for the global fashion industry, there’s a prediction of seeing an increase in profits in 2021, let’s find out how the landscape will look like in the new normal of age and the adaptations brands would need to thrive in the apparel segment. Indeed, the crisis pushed fashion brands to reshape their business models, refine the customer value proposition, and to streamline operations.
Operating margin was seven percent; Adjusted EBIT was $113 million and adjusted EBIT margin was 8.2 percent, up from 7.9 percent in the third quarter, due to the company’s cost- reduction initiatives and higher gross margin, despite the substantial adverse revenue impact of COVID-19.
When deliveries started for non-essential products, the brand slowly ramped up their marketing and communication efforts as well. In the initial days, Caratlane did face inventory related challenges when most stores, that also acted as fulfillment centers, shut because of the lockdown.
The[Pant]Pro•ject goes even further, and offers clients a range of advanced customisations to choose from, with choices to add pleats on the front panel, extended tabs on the waistband, roll-ups on the hem, a button or hook fastening mechanism, and even free monogramming, guaranteeing a unique product that’s made just for you – every single time.
The current distinction in GST rates below and above Rs 1000 be removed, and a uniform rate of 5% GST applied. Undoubtedly this decision can ultimately be taken only by the GST Council, the Budget can certainly give an indication and direction to the Council to seriously consider this suggestion.
Like Sephora, there are many other brands which are navigating social distancing born out of the pandemic. Caratlane, an online born and bred jeweller launched its first offline store in 2012. Since then offline retail has played a significant role in the company’s revenue. When the pandemic hit, the company’s first reaction was to cut down on its marketing efforts, in a bid to conserve cash. Yet, it noted no significant dip in its online business.
Birkenstock, the global German lifestyle brand with a heritage in iconic footwear, has launched its e-commerce ‘1774’ in India. Launched originally in January 2019 globally, www.birkenstock.in/1774 showcases the brand’s unique collaborations with fashion’s brightest minds.
As the global health and economic crisis endures, 2021 will act as the bridge between the pre-pandemic reality and a potentially protracted recovery period for the global fashion industry. The pace of recovery will vary across fashion categories, value segments and geographical markets with some pockets of growth despite the continuing economic challenges. Fashion players focused on digital, Asia (China in particular) and luxury may have the competitive edge. The report outlines two scenarios for the fashion industry’s recovery:
In an indirect manner though, Budget 2021 has made several announcements which will have a positive impact on consumer spending – such as increases in infrastructure and overall government expenditure – and this will help the industry, especially the Apparel sector.
President of Erode Powerloom Cloth Producers Association Suresh was quoted by news agency PTI as saying, “The cost of 120-gram and 150-gram rayon yarn used for the production of the rayon cloth has been increased by Rs 26 for a cone as a result of which the cost of production has been increased by more than 20 per cent.”
Another point for consideration that a lot of brands face before venturing into the digital space is whether they must tag along a known marketplace or should they build a retail website of their own or should it be a combination of both. Indeed, there is resonant traffic in marketplaces that will fit well with the brands, so that goes as a no-brainer if fashion brands want quick ROI. Having said that, each brand must have their own D2C portal as well if not already in place. In addition to that, to push digital growth, behavioral insights deduced from the analytics are going to be the currency in 2021 and beyond. Brands will have to focus on how to make the customer’s digital experience richer in order to make the customer stay in the journey and make it to the end.
In order to track continually evolving consumer behavior, luxury brands are developing an appetite for analyzing big data through artificial intelligence (AI) and augmented reality (AR) applications. As customers use more channels for purchasing, large fashion groups are seeking to develop more extensive client relationships by refurbishing retail stores and providing an omnichannel presence.
The scope of the project focuses on tracing viscose ﬁbres from production to retail. To do so, the project leverages the impactful work of the CanopyStyle initiative to eliminate ancient and endangered forest ﬁbre from viscose production and to bolster adoption of forest certiﬁcation standards such as FSC, to address traceability in the earlier parts of the supply chain i.e. from forest to viscose ﬁbre production.
Digital is being pegged as the biggest opportunity for 2021 with more than 20 percent business growth expected through e-commerce channels. Over a period of just a few months, the digital has moved rapidly forward doubling up fashion online sales. The growth trajectory of using a digital medium to make purchases has been fairly steep which perhaps might have spanned over years to reach that level under pre-covid times. This trend is going to accelerate in 2021 and beyond as digital has emerged as one of the key drivers of the growth momentum. As more and more fashion brands pivot towards online channels, we are likely to see the shutting down of brick and mortar stores in a continuum.