Consumer sentiment remains positive this festive season with 35 percent of consumers likely to increase their festive spending from last year.
According to a new report by Redseer Strategy Consultants, despite concerns around inflation and discretionary spending, customers are looking forward to spending more, and sellers on e-commerce platforms are expecting a 20 percent volume growth during the festive season.
“Increase in discretionary spending across households demarcates the continuity of festive sentiments. From visiting physical stores to scanning through online sites, consumers are not only investing in household products but are also splurging for themselves and their families. However, one can witness the spending capacity to be conscious as the expenses are mostly on low-budget items such as clothes as compared to heavy ticket items such as vehicles or properties. Cash though continues to be the king, digital modes of payment like UPI & debit/credit card usage is also growing rapidly” stated Pradeep Gupta, Chairman, and MD, Axis My India.
Resonating the same thoughts, Akhil Jain, Executive Director of Jain Amar Clothing Private Limited, the parent company of MADAME said that retail is experiencing one of the better quarters in the last few years. Offline retail is also picking up.
“Last year, we saw consumers opting for comfort wear, loungewear, and athleisure wear, however, this year, the comfy collection is taking a backseat and consumers are back wearing high-on-trend fashion products,” he stated.
Gearing Up for the Festive Season
To kick off the festive season, the brand showcased its festive special collection to a few selected consumers. It got rave reviews about its new collection.
“This is something new that we did and haven't done before. This collection is already available in the stores. Apart from this, co-ord sets are the fastest moving item these days,” he asserted.
Online V/s Offline
At present, for MADAME, 8 percent of its revenue comes from online sales channels including e-commerce, D2C, and other marketplaces.
“We are under BETA testing for omnichannel retail and once launched, we are expecting 12-13 percent of the revenue of omnichannel retail. Under this, you can click and pay and even, and you can go to one store and if you don't find the desired product at that store, the nearest store having a product can deliver it, either through a Dunzo or a courier service, etc.,” he stated.
“Apart from this, we are revamping the entire supply chain ecosystem to strengthen our presence across channels,” he added.
On the backend, the brand is migrating to Microsoft Dynamic 365 and on the front end, it is utilizing services from Unicommerce and Fynd.
“We are now working with our tech partner to help us create those algorithms in the system wherein we can leverage AI. We will also be introducing a specific collection to cater to a specific audience. Consumer insights play a very important role in this because as the transaction is increasing, as the cataloging is increasing, the customer has a limited time to spend on one particular brand. So using AI, we want to target him or her with the near precise requirement that the customer would like to see on our portal or app,” he explained.
At present, the brand has enabled Social Commerce over Whatsapp and Instagram and it is planning to introduce Video Commerce soon.
At present, MADAME has 175 point-of-sales, out of this, more than 140 point-of-sales are in North India.
“We are planning to expand our wings in Western India especially Gujarat and west Maharashtra. We will be opening 8-10 new EBOs in these cities this year. In Eastern India, we are expanding with large format players like Central, Lifestyle, and Shoppers Stop. So these are key markets where we see the expansion coming in the next 12 months,” he asserted.
This year, the brand is expecting a top-line growth of Rs 250 crore.
“As a YoY growth, we saw a 47 percent jump in our revenue from last year. This year, it will be about 63 percent,” he said.
“Going ahead, in terms of geographical spread, we plan to have 1,500 point-of-sales from the retail and the distribution point by FY 26-27 and this includes, a lot of geographies that are untapped. At the moment, we operate in about 85 cities with our own EBOs, which will grow to more than 250 cities. Apart from this, we will be exploring international markets like Southeast and Gulf again in FY 24-25,” he concluded.