Snapdeal, the value-focused online e-commerce company, has announced that sales in its fashion category have grown by 210 percent in the first six months of 2021.
The growth has been driven by users replenishing their wardrobe to meet WFH clothing needs ('Zoom fashion' that includes mostly waist-up garments like t-shirts, shirts, and tops). Another reason that drove fashion purchases has been the desire to buy new clothes to meet friends and family after a long gap and also to meet travel needs.
'Value-buying' has emerged as a common theme cutting across buyers and categories in the apparel sector. On average, the popular price range for a single fashion item on Snapdeal is now anywhere between Rs 300-450, as compared to Rs 450-550 in 2020. In fact, on Snapdeal, the purchases within the Rs 450 segment have doubled to 40 percent in H1 2021 as compared to H1 2020.
The wallet share of fashion buyers moving from expensive brands to more affordable value for money brands can be attributed to multiple reasons including the impact of second-wave, apprehensions of further waves, increased online supply of value merchandise, and consumers reprioritizing their budgets and priorities.
In a recent Snapdeal survey, consumers mentioned that “while they expect to spend less per garment than they usually do, that doesn’t necessarily mean they plan to buy less.”
Elaborating more on its customer survey findings, Snapdeal spokesperson said, “Many of our fashion customers are between the ages of 18-27 and they have mostly been at home since the beginning of the pandemic. However, instead of waiting for the chance to socialize more freely, they are adapting to virtual interactions. This includes sharing their new wardrobe choices with their networks over social media and in virtual interactions. The desire to update their social media with their latest images and videos has been a strong reason for them to buy newer trends, albeit at more affordable and reasonable prices.”
In the women’s fashion category, while total sales of units grew by 3.5 times in the past six months, salwar suits grew 7 times clocking the highest growth in the category. Sarees, kurtis, dresses, activewear, and nightwear also showed multi-fold growth. With comfort taking priority, flared pants, and palazzos gained popularity over jeans and skin-tight trousers.
In men’s fashion, the segment grew 3.25 times, including loungewear, athleisure, and innerwear. Daily average orders in the upper wear category especially t-shirts, polos, shirts, and innerwear went up by 100 percent, where shoppers preferred seasonally relevant, summer cool collections made of light fabrics, soft colors, and summer prints.
Snapdeal’s approach to fashion has been to quickly adapt to consumer expectations, focusing on utility, styling, and sizing. To meet this, Snapdeal now launches fresh products every month across categories and has value-buys in Rs 249-499 price range and attractive collections and combos for GenZ and Millennials.
While the apparel and fashion industry has undergone pandemic-led changes, it is on a path of steady growth on the back of more utility and functional choices and value prices.
In a strategic move reinforcing its commitment to Madhya Pradesh's economic landscape, Hindustan Coca-Cola Beverages (HCCB), a prominent FMCG player in India, has disclosed a Rs 350 crore investment in the state. This announcement, made during a meeting between the Chief Minister of Madhya Pradesh, Dr. Mohan Yadav, and a senior HCCB delegation, propels the company's cumulative investment in the state to over Rs 660 crore.
The capital injection will fuel the establishment of two cutting-edge manufacturing lines at HCCB's Rajgarh factory, dedicated to producing Affordable Small Sparkling Packs (ASSP) and Juice Tetra Packs. Beyond expanding manufacturing capabilities, this move is poised to make a substantial contribution to the state's economy. With a robust network of 149 distributors and 127,080 retailers, HCCB plays a pivotal role in Madhya Pradesh's retail sector, distributing approximately 10 million cases across 29 districts.
In reciprocation, the Madhya Pradesh Government has committed comprehensive support to expedite HCCB's procurement of necessary permissions, approvals, and clearances, aligning with the state's policies and regulations.
Himanshu Priyadarshi, Chief Public Affairs, Communications, and Sustainability Officer at HCCB, stated, “This investment is a significant step in our journey with Madhya Pradesh - a state that is poised for growth and development. We see this as an opportunity to deepen our commitment and align our growth with the state’s vision. This is more than an expansion of our business operations; it is about reinforcing our roots in a state that is key to our market strategy and a hub for innovation. We envisage this project as a catalyst not only for regional economic growth but also as a conduit for nurturing local talent, thereby contributing to the socio-economic progress of Madhya Pradesh.”
Having invested over Rs 311 crore in Madhya Pradesh since 2000, including recent expansions in 2022 and 2023, HCCB has consistently demonstrated its commitment to enhancing production capabilities and supporting the local economy. This latest financial commitment not only cements its industrial presence in the state but also aligns with HCCB's dedication to delivering innovative and high-quality products to consumers in Madhya Pradesh.
HCCB's engagement in Madhya Pradesh transcends business investments, extending to Corporate Social Responsibility (CSR) initiatives. These projects focus on water rejuvenation, skill development, and sustainable agriculture. Notably, the initiatives have impacted 1200 youths in sales and marketing training, 1500 women in digital and financial literacy, and over 100 farmers in adopting sustainable agricultural practices. Additionally, HCCB has facilitated the installation of water ATMs and Smartboards, contributing to community resources.
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