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Despite the steep fall in gold prices and the resultant fall in realisations, retail jewellers are likely to sustain the ongoing demand recovery into the next fiscal with a 30-35% spike in demand, according to a report. There was strong demand recovery in the third quarter of FY21 due to the festive season, pent-up wedding demand, and a 10% correction in gold prices during festival period from its peak in last August, said India Ratings in a report on Thursday, revising the sectoral outlook to stable from stable-to-negative.
With economic activities reaching pre-pandemic levels, the agency expects the momentum to continue into FY22, backed by a softening of gold prices.
The agency expects the jewellery demand to grow 30-35% in FY22 over FY21, primarily because of a low base and rising demand. But the overall sectoral demand will be only be 5-10% above FY20 as the recovery in FY22 will be V-shaped.
During the first three quarters of FY21, the overall operating margins of the top jewellers put together expanded to 7.7% against 5.9% in FY20 because of improved realisation, and a reduction in selling and promotional expenses, among others.
Though price realisation gains may not continue in FY22, lower operating leverage and improved efficiencies in terms of lower marking expenses and lower rentals are likely to support margins, which is expected to be 25-50 bps above FY20 levels.
Most companies have deferred new showroom launches to FY23 and are consolidating their less profitable showrooms. The sector is likely to deleverage in FY22, backed by a revival in demand and no significant showroom launches.
On the upward revision in the sectoral outlook to stable for FY22, it said, although there have been no rating upgrades in FY21 till date, about 11% of the ratings have been put on a positive outlook in view of a sharper-than-anticipated recovery, adequate liquidity buffers and margins supported by high realisations. There were no downgrades of any big players in FY21.
The rare tattoo designs based on four themes: a classic bestiary of Insects & Animals, the signs of the Zodiac and the Chinese horoscope, vintage designs with Eagles, and the subtle art of Calligraphy can now be perfected on Berluti’s original and globally renowned Venezia leather. The noblest of all leathers, only Venezia leather sustains the creative audacity of Olga Berluti’s vision of art.
According to Tiwari, “We ensure our campaign imagery is of high quality and for that we shoot internationally to bring forth the true image of the brand, being designed in London. Locally, we rely on heavy mall activations and branding to steer the customer to our stores. We also turn to Instagram as a great tool to highlight our fashion authority in the market along with a lot of support from celebs and influencers.”
“We need to constantly develop our business and what we choose to invest in. We see very good opportunities and great potential for all of the other brands within New Business, which all are developing positively both digitally as well as through physical stores,” says Anna Attemark, Head of New Business at the H&M group.
The brand plans to offer good quality products at accessible prices in the ‘Casual and Sports Lifestyle’ segments. The new footwear line is light in weight and is designed with novel fabrics to ensure comfort for long hours of wear. At the same time, the offerings are made available in a range of colours and trendy styles.
Indian denim brand Mufti has announced its expansion into the footwear category with a multi-fold strategy including the launch of its latest Autumn Winter footwear collection. Over the past two decades, Mufti has redefined the stereotypes of mainstream fashion and now is extending the same ethos in bringing an alternative choice in footwear which is fashionable yet comfortable. The company’s expansion into the footwear segment is a result of the company’s in-depth research highlighting the rising demand for trendy footwear in the casual segment for men.Over the last 12 months, Mufti has launched a select range in its top 100 stores to gauge consumer sentiment
An early realisation of creating partnerships with entrepreneurs has helped Raymond in the roll out of a strong franchise network across emerging markets and building marquee brand presence in these towns. We believe that this focus on potential emerging markets, strong partnerships, early mover advantage, stringent retail processes and quality control along with a customer centric approach will take Raymond to newer heights.
Based on its 60 years of experience retail and in-depth study of over 100 outlets in Tier IV and V markets; in September 2016 Raymond piloted a new business model internally referred to as Mini TRS (The Raymond Shop) which was then perfected over 6 months and commercially launched in March 2017. The first Mini TRS opened in March in Bihta (Bihar). Since then, over 200 TRS stores have been rolled out in last 19 months.
According to Manjula Tiwari, CEO, Future Style Lab, a fantastic growth has been seen for the brand, in terms of its popularity with customers and retailers alike. “Being just a 2.5 year old brand, Cover Story has established itself as a formidable competitor in the fast fashion space to international players. The brand is among one of the very few Indian brands to be present on ground floor locations across the leading malls in India, a great indication of the journey so far.”
In the coming year, Fila’s focus will remain on the Heritage apparel and footwear collection, but we will also continue to invest behind key categories in sport such as Motorsports, Tennis and Basketball. Towards the end of the year, we will also be debuting our first performance collection specially designed for the Indian market.
This will unfortunately affect all Cheap Monday employees and operations in Tranås and Stockholm, Sweden. Approximately 80 employees are affected. Dialogue with union representatives has started and the company plans for all employment contracts to be terminated during 2019. All employees will be provided external career support and will be given guidance in how to apply to continue working within the H&M group.
Activewear is one a one of the fastest growing segment in the apparel market. With the growing focus on health and wellness, as well as the rising awareness of lifestyle concerns, people are getting more conscious about their fitness regimes and workout oriented lives. Hence, running marathons, hitting the gym and practicing yoga are no longer niche.Activewear affords more flexibility and style along with functionality and comfort, while sportswear is more focused on functionality and performance
Design is another important influencer that determines the price of a final product. “There are several garments that are hand-embroidered that significantly drive up the price because of the added cost. Selecting a premium fabric usually is very expensive but with the bespoke process combined, it usually ends up being a balanced purchase,” says Gonsalves.