The last month of the year is about to end, this year has proved to be good for some and bad for others. There are many festive seasons throughout the year, due to which the market is flooded with sales and discounts. But its effect is not visible on the companies. We are saying this because the sales of many big companies from Aditya Birla Fashion and Retail to Jockey, Arvind Fashion and others have fallen significantly this year. In such a situation, the question arises whether people have not bought clothes this festive season or are they not shopping? Let us know what is the whole matter from the performance of the company…
The second quarter of the year has been very difficult for big brands listed in the country. Aditya Birla Fashion & Retail, Arvind Fashion, Page Industries and others have reported negative revenue sales in the second quarter of 2024 compared to the second quarter of 2023.
Although some people believe that this is a market correction after the Corona epidemic. Let us tell you that there has been a decline in the sales of all the brands, but this decline has happened in the big luxury brands. Department stores like V2 Retail and Tata Trends, which also includes Zudio in its portfolio, have performed well during this period. Their sales increased at the rate of about 59%.
According to Economic Times, a close look at the data shows that the clothing market has been growing continuously throughout the year. India’s clothing market is expected to grow 18% year-on-year to USD58.4 billion by the end of this calendar year, according to market-research company Euromonitor International. So, if the industry and department stores are growing, why aren’t second-hand clothing companies or brands growing?
Its effect on the cell
Customers or people’s buying of clothes has not reduced, but the pattern of what and how people are buying has changed. Which is affecting the sales of brands. People’s shopping pattern is changing with fashion. People are finding clothes and designs of Judio and Reliance Trends more suitable than those of big brands.
That’s why sales also decreased
According to the Economic Times, speaking on the performance during the second quarter of 2024, Aditya Birla CFO Jagdish Bajaj says that the market is currently sluggish due to unnecessary expenditure in the market recession. At the same time, more months, change in festive season and less wedding dates compared to last year have also had an impact on it. The combined effect of all these led to a decline in demand and hence fashion suffered losses for big brands.
Effect of wedding season
The ever-growing lifestyle brands have been affected due to less timing of weddings in this quarter. In this season people buy more suits and blazers.
ABFRL is the parent company of brands like Allen Solly, Louis Philippe, Peter England, Van Heusen, Pantaloons, American Eagle and Forever21. The company has also been acquiring several brands like House of Masaba, Tarun Tahiliani and Sabyasachi in the last two years. The company announced a joint venture with French luxury shoe brand Christian Louboutin on December 6.
While it is true that the festive season has moved into the third quarter this year, and the wedding season is also about to pick up, a decline in sales was also seen by companies like Arvind. Arvind Arrow is the parent company of brands like US Polo, Flying Machine, Calvin Klein, Tommy Hilfiger and Ed Hardy, most of which source North Indian clothing.
people are spending so much
Fireside Ventures New Age Gen Z: People of today’s generation consider it better to spend money on new brands instead of expensive clothes. People are spending only Rs 800-1,500 on clothes these days. Gen Z and Millennials are moving towards new age e-commerce or Instagram brands, because the designs there are often trendy and attract people’s attention with the help of effective marketing. We do.
What is happening in the industry is a K-shaped curve, says Angshuman Bhattacharya, national leader, consumer products and retail, EY India. Where some premium brands and some value retail brands are performing well. Apart from many other companies, Zoodio and Reliance trends are performing well and are in a K-shaped curve. This year was also very good for companies like Marks & Spencer, which are in the premium category. Whereas many listed companies are generally large-scale, those in the middle.