How Year 2021 Panned For Businesses And Where They Are Headed In Year 2022!
Business Of Fashion|December 2021
Reports suggest that India’s direct selling industry would be valued at US$ 2.14 billion by the end of 2021. Brick-and-mortar retailers, too, have been growing steadily and several fashion brands are looking to open more stores in the upcoming financial year. Through this article, we take a look at how year 2021 panned for businesses and where they are headed in year 2022.
Tripti Mehta

The Indian retail industry, at large, has developed as one of the most dynamic in the country, primarily driven by the entry of several new players and the massive boost to e-commerce in recent times. A report by India Brand Equity Foundation (IBEF) states that retail technology companies supporting the retail sector with services such as digital ledgers, inventory management, payments solutions and tools for logistics & fulfilment are taking off in India. In the first nine months of 2021, investors pumped in US$ 843 million into 200 small and mid-sized retail technology companies, which is an additional 260 per cent of capital compared to the entire 2020. But, businesses have faced several challenges in the last year and it hasn’t at all been smooth sailing.

Talking about how the year panned for his brand, Gaurav Pushkar, Co-founder, DaMENSCH, says, “In pre-COVID times, the men’s apparel industry was seeing an average of 1213 per cent CAGR. The digital native online consumer ignited this revolution seeking distinct and innovative products & fabrics and sought out brands that challenged the norm. As a result, while the innerwear segment for online platforms grew 2.5x pre-COVID, DaMENSCH grew 6x. We added to our existing innerwear catalogue and launched products for men’s entire essential wear - shorts, t-shirts, joggers, pyjama pants, sweatshirts, tank tops, hoodies and chino shorts. Hence, overall, it’s been a great year for us and essential men’s wear in India.”

A report by SMIFS Limited states that the men’s innerwear market is expected to reach ₹218 billion by 2028. The Indian innerwear market has witnessed a changing trend in the past with more and more people opting for branded products. Men’s innerwear segment has a very high branded proportion accounting for about 61 per cent of the total market size. Looking ahead, growth in the innerwear market is expected to be driven by broad based consumer trends in the form of rising discretionary spends, growing number of mid-high-income household and increasing urbanisation. Innerwear has progressed from being just a functional category to making a bold fashion statement. It is a welcome shift from a price-sensitive category to a brand sensitive category, the report adds.

Trend Watch

Consumers

• With work from home being the new normal, shopping for comfort wear has seen an upward trajectory.

• There has been a huge traction of customers from Tier-II and III cities this year as compared to previous years. These customers are looking not just for discounted products but also looking for newer and fresh styles.

Technology

• Giving the consumers the best user experience while they shop online from the comfort of their home.

• Curating an omnichannel and personalised experience for customers via Al-based marketing and Al-based recommendations on the website.

Marketing

• With people becoming more and more environmentally aware and responsible, companies have shifted their focus to sustainability — right from their product to packaging.

• Providing a more personalised experience for customers, and segmenting them to show what they are looking for using Ads.

Textile industry: 2021 vs 2022

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