Winter, this year, was severe in the northern part of the country and this is the main reason why the fashion retailers are happy. The harsh winter has spurred the sales of winter garments. The merchandise was flying off the shelves at rapid pace and the business was doing better than the last year with the sales up 30-50 per cent over last year. Lilliput sold off 70 per cent of their inventory before winter completely set in, pushing the retailers to go for discount sales for stock clearance. Better sales making the retailers to stock more and it paid off quite well. Though the period of this season is short, but due to the growing awareness of brands among customers and evolving retail environment, this category has been taken very seriously in the recent years.
Impressive sales data
According to Harkirat Singh, MD, Woodland, “Many apparel companies did not take this category so seriously but in the recent few years the market for winter collection is flooded with fashionable line of products. This year our inventory has gone up by 20-25 per cent and we have received a good response.”
An occasion to change the wardrobe
A very interesting trend has been noticed in recent years that the consumers want to change the entire wardrobe with the winter collection. Wearing summer clothing becomes boring and repetitive in the Indian context, so this short span of season acts as a complete change of the attire for the consumers unlike Canadians who wait for summers.
Further, experimentation and higher disposable incomes have also accelerated the activities in the buying space, especially apparels.
Customers’ choice of products
- Chunky sweaters & pullovers
- Jackets with fur, military style & animal prints
- Long coats, blazers both for professional and personal consumption
- Long boots
- Mufflers in vibrant colours
- Bags matching the outfits
Festivals are lined around this season
As we notice, most of the festivals in India starts around October and continues till January. In fact, the sales in these four months are equivalent to the total business sale for the entire fiscal.
The consumer in India is also looking for festive seasons to bring new products. Singh of Woodland shares his views, “In fact 40-50 per cent of the sales take place in these months, hence the winter category cannot be ignored.”
With the growing awareness and many new channels available, shoppers, especially youth, are the active buyers of this segment.
Value of winter category is 3 times that of summer merchandise
Adds Yuvraj Sikriwal, Head- VM (North & East India), Lifestyle International Pvt Ltd - Max Retail Division, “Retailers have started taking the winter wear category and its display very seriously as the winter merchandise is of almost three times the price of the summer merchandise.”
Prime factors for volumes of sales
- Youth experimenting trendiest outfits
- Change in consumer perception: from functional to fashion
- Entry of international brands
- Rise in disposable income
- Growing awareness through various channels-FTV, effective print media, TV, visual merchandising
Planning
The planning actually starts almost a year before the merchandise is launched in the market. Singh says, “The budgets are planned beforehand and we have already made the plans for our next winter collection almost 1.5 years before. “ The areas for the main budget include - R&D, Marketing and Manufacturing.
Strong R&D team
There are several back-end preparations required to plan the merchandise long before to sell the SKUs in time. Says Manjula Tiwari, Brand COO, Esprit, “We have a very strong Research & Development team which undergoes detailed study of the market to plan for winters. Thus, a detailed research is based on demography, location, type of consumers, preferences and colours (like browns do not sell in South).
The R & D team works on the quality of the fabrics to be used and its functionalities (weather proof and water proof) to prepare the whole range of merchandise for the entire season - mild winters to harsh winters.
Store display, packaging & marketing
With the back-end work in place, there is a need to show the change of season at the store level through VM (visual merchandising) preparations.
Mannequins wearing the winter outfits (jackets, sweaters, mufflers and other co-ordinates), surroundings based on unique winter theme - add fresh and contemporary look to the stores. For example, Lifestyle has come up with London theme.
Getting deeper into the details of this category, retailers keep most of the varieties within the reach of the customer as shelves do not fit for this category. For example, hangers and layered display patterns are used to keep the consumers at ease while shopping.
Packaging trends (bags depicting the latest collection of winter wear) also add value to the brand and the product. Shoppers prefer the attractive packing which keeps their winter merchandise fresh and intact and also love to flaunt the bags they carry while shopping. This is backed by strong advertisement base. Winter categories along with huge promotional schemes in the festive months go hand in hand. Impressive print media, internet, TVs, radios, display boards with discount offers add to the volume of sales exponentially. “Our marketing strategies are very strong by adopting aggressive media compaigns. Moreover, in store we have very good offers which run from time to time. On certain amount of purchase, we offer a discount through Loyalty Programme,” explains Sandeep Jain, Executive Director of Monte Carlo.
Strategies for high sales
The percentage of winter collection increases as the weather gets colder. In the peak of the season, 80-85 per cent of the merchandise forms the winter category along with accessories to compliment. As Singh explains, “We plan our merchandise in stores according to the months as winter gets cooler. We bring long sleeved shirts as the autumn starts to satiate the need, and then in November-December, we update our stores with light weight leather jackets, sweaters, mufflers, long boots, etc. In January, we again add more warm merchandise to suit the weather conditions.”
Adding to the strategy, Manjula Tiwari of Esprit elaborates, “We make sure that our products reach on time to every store. It is the critical part of the strategy to make hay while sun shines. Further, to make our customers feel special on the occasion we have introduced promotional schemes on the Christmas Eve.”
Diving into more details, Vijay Bansal, MD, Cantabil, shares the following points about ramping up winter sales:
- World class fashion and premium pattern
- Best fitting
- Pocket friendly merchandise
- Easy availability
- Wide range
- And powerful branding in print and outdoor media
Speaking on the same line, Anil Lakhani, MD, Gini & Jony says, “We allow a gift voucher to our customers at the purchase of certain amount which they can redeem immediately or even for the next purchase during winter season.”
Need of greater visibility through retail expansions
The visibility of the brand is very essential apart from keeping the collection in the existing stores. Tiwari further elaborates, “We make sure that we have a strong presence in the Delhi, NCR and Punjab andJaipur where the season is playing its part of role.”
Intensify the category
It is just not enough to keep sweaters, jackets and pullovers in the stores. A whole range of other products complimenting the main products are also taken as a serious way to grab the larger share from the consumer wallet. Keeping mufflers, warm caps, hats, handbags, eye wear, footwear, such as long boots, complete the look for winter season.
Challenges
Tiwari of Esprit informs, “Since the period of opportunity is short, the challenge is to make sure that the correct merchandise reaches the targeted customer at right point of time as shortage of inventory or SKUs can be categorised as loss of opportunity.”
Talking on the same lines, Baqar Naqvi, CEO, Cotton County says, “The challenge is to sell the maximum amount of stock before starting the promotional schemes.”
The winter season from recent years has shown retailers positive signs in apparel and accessory segment. Further in the coming times, this market would increase with more trendy patterns of consumption, changing the lifestyle of the consumers even in the deeper parts of the country.
Sales Info
Company’s name Sales performance (yoy)
Esprit 50%
Cantabil 22-25%
Cotton County 20-25%%
Monte Carlo 30-35%
Gini & Jony 25%
Woodland Winter Wear 35-40%
Lilliput 40%
Pantaloons 50%
ITC Lifestyle 30%
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