The Covid-19 pandemic has battered the $80 billion strong fashion and lifestyle industry (comprising apparel, footwear and accessories) in India, with industry revenues expected to decline 25-35 percent in FY21. Consumers are likely to cut down on discretionary spending, down-trade across price segments and approach offline stores with caution, especially those in high density locations such as malls and shopping complexes.The online channel has been the quickest to recover and now stands at the top of the growth agenda for brands and retailers. It is still worth putting into perspective how small the online segment is (or was, pre-Covid).Online (urban) penetration in fashion and lifestyle stood at 9-10 percent in CY19, significantly lagging other markets like the US and UK (20-25 percent), and China (>30 percent). Covid-19 is expected to accelerate the penetration to 14-17 percent by CY22; leading brands should aspire to 20-30 percent share of business coming from online channels.
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