Impact of COVID on

Indian Fashion Segment

INDIA’S FIRST CONSUMER STUDY
A Complete Report
1,726 consumers surveyed across 24 cities

BROUGHT TO YOU BY
Setting the Context
On the 24th of March, India went into a strict
lockdown owing to the Covid-19 outbreak.
The retail sector, especially, has been
bracing to tackle the economic impact of this
crisis over the next few months.
While businesses are grappling with the
shapes and curves consumer demand
recovery will take, they certainly need to
gear up to varying, unpredictable scenarios
that are likely to emerge in the near term.
The demand for essentials category of
course continued to peak and turf marked
by panic buying and hoarding, witnessing
nearly five fold increase as supply levers
streamline. With the economy coming to a
grinding halt, especially adversely impacting
non-essential sectors, it’s critical to assess
consumers’ sentiment and rebound quotient.
Hence, eager to gauge contours of the
discretionary wallet with the possible lifting
of the lockdown on May 17 and perhaps
extension of it, Wazir Advisors and Crownit
partnered to connect with 1,726 consumers
across 24 Indian cities to gauge their
response especially on the fashion category.
Impact of COVID on Indian Fashion Segment - Consumer Study

Cues of Optimism & Positivity

Consumers exhibit positive vibes inspite of
facing stringent lockdown rules for past 55
days. 62% respondents believing that they
60% consumers strongly will soon get back to their normal routine

60 believe the crisis will soon and life.

%
be over and all will be In addition, more than half the respondents
normal again. i.e. 58%, reflect eagerness to shop for
fashion on lifting of the lockdown.

58% respondents eager to

shop post lockdown lifting
and they look forward to
fashion shopping again. 58 %

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

India has seen two phases of lockdown Continued Optimism Even Across
extensions until now; 3rd May and 17th May. Lockdown Extension Scenarios
This initial excitement for fashion shopping
does not tend to dilute significantly even
with possible extensions of the lockdown. Fashion Shopping Eagerness

A high 70% eagerness marked the earlier 40 70%

day lockdown scenario, which reduces only
65%
slightly to 65% and 61% with extensions of
70 and 100 days respectively. 61%

These early signs of respite buying, revenge

buying is what fashion retailers are hoping
to leverage. However, given skepticism
enveloping discretionary categories, there 40 Day 70 Day 100 Day
is an anticipated decrease factor on the Possible Lockdown Extensions
average spend on fashion.
N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

Average Decrease in Spend Consumers claim a decrease in average

Similar Factor @25% Across spend on fashion as the lockdown scenarios

Extended Lockdowns extend. Similar number, 20% consumers,

cite decrease factor of ~15% across both 70
and 100 days scenarios.

A total of 64% and 57% respondents cluster

34
30 31 towards the decrease slabs of 16%-35%
26 24 and 26%-50%. It seems that consumers
19 19 17
slightly skew towards an average ~20%
decrease factor, during 70 day lockdown,
rather than the higher decrease factors - is a
sign of their optimism.
10%-15% 16%-35% 36%-50% More Than 50% Interestingly, across both scenarios, the
Decrease Factor in Spending Amount blended decrease factor average is similar
at ~25%.
70 Day Lockdown
100 Day Lockdown N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

Lack of Socializing During the

Whilst consumers are striving for optimism, Lockdown Marks Consumers’
the aspect of being housebound and lack of Muted Contours for the Category.
socializing has reflected in muted contours
for fashion. Nearly half of the respondents
claim low eagerness quotient for fashion
engagement owing to low socializing,
coupled with increased stay-at-home that
the lockdown period has presented.
60 %

Nearly half the consumers 60% cite likely reduction

claim low eagerness for on apparel spend with
fashion engagement higher incidence of
owing to decrease in Stay-at-Home.
socializing.
N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

It is highly likely the younger cohort’s eagerness

Whilst Millennials Lead the to re-socialize would emerge disproportionately

higher amongst age cohorts. It is of relevance
‘Re-socialize’ Index, the Independent for fashion retailers to note that this muted
Score is Relatively Low. thread runs through the Millennial consumers
too. This translates into fashion retailers having
to reinforce their effort to woo even this highly
Low eagerness for Reduction on apparel experimentative consumer target in addition to
fashion due to due to increased
decreased socializing Stay at Home other age groups.

Interestingly, the score of the older cohorts

Millennials 50% 57%
(26-35yrs & 37-50ys) on re-socialize, re-engage
Relative is not very distant than that of the Millennials.
Grading
Gen Y 43% 61%
These groups together present high disposable
Across
Consumer income, rich life stage, wide & varying activities.
Cohorts
Gen X 42% 59%
All the above factors combine for fashion
Baby Boomers 45% 70% brands to explore distinct and differentiated
engagement tools for each target segment in
N=1,726 | % consumers the strive to overcome these challenging times.

© Copyright of Wazir Advisors & Crownit 5

Impact of COVID on Indian Fashion Segment - Consumer Study

Only 35% Consumers Believe They

The anticipated demand revival seems to Have Enough Clothes and Don’t Need
be further validated when only one in every to Shop for Apparel
three respondent believes that they have
adequate clothes and hence don’t feel the
need to shop for fashion in the coming
months.

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

Contours for
Deferred Purchase
Consumers Indicate
Low Propensity for Extended Periods The steep sway of essentials & basics
demand witnessed during the lockdown
of Deferred Spends on Fashion pushed stakeholders across the value chain
of discretionary categories to speculate the
colors this wallet pie would take especially
over the next few months.

Consumers demonstrate mixed trends,

with a positive tint, on deferred spends
for fashion. Only 45% respondents claim

45 % they would put off spends on fashion

with uncertain, vast extended lockdown
scenarios. Hence, making it imperative for
fashion retailers to solve the immediate
supply, access and availability challenge.

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

This is also a set of consumers reflecting Re-bounce, Claiming Lower Purchase

high discerning hues; as 68% of them claim Deference Quotient
to focus on commodities and essentials
owing to the economic uncertainties with
only 2 out of 5 consumers cite readiness to
defer spend on clothing.

Given that fashion sales velocity typically

skews towards the Fall-Winter season and 68 %

is marked by festivals in India, an extended

assumption would be that current deferment
will cumulate towards festive season time
too. Consumers, however, tell us otherwise.
68% respondents cite wallet share focus
towards essentials, but only 2-in-5 claim that
they will not spend on fashion over next few
months owing to uncertain times.
N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

Only less than half, again 45%, consumers claimed

they will wait until festive, special occasions to
Similar Trends Witnessed spend on fashion again. This throws up interesting
Across City Type cues: would fashion seasons, cycles disappear and
perhaps blend in the Indian context giving way to
shorter, rapid and quick fashion season business
Defer Spend on Fashion... models.

...Until Special ...if Uncertain Against the current urgent impending challenge
Occasion & Festival Lockdown Extends of inventory, would inventory assessment take
new and different optics. Retailers would need
to redefine obsolescence, leverage core, liquidate
Metro 46% 44% high fashion as well as develop range to capitalize
upcoming festive season.

The non-metro cities of India particularly lean

Non-Metro 48% 49% toward festive purchase, special occasions. The
non-metro consumer too, however, is not afar from
the metro consumer and similarly share this trait.
Metro consumers & non-metro consumers grade
N=1,726 | % consumers
similarly on this trend.

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Impact of COVID on Indian Fashion Segment - Consumer Study

48%
3.36 47%
3.33
Mild cues of relief shopping emerge in the Male
Male Gen YY
Gen
immediate term for brands and retailers to I will wait
I will forfor
wait 3.35 55%
3.70
festivals
festivals&&special
special 48%
capitalize. Milennial Baby
Baby
occasions
occasions Milennial Boomers
Boomers

The women respondents tend to reflect 45%

3.29 44%
3.28
lower quotient of deferred gratification vis- Female
Female Gen
GenXX

à-vis fashion shopping compared to men.

49%
3.36 43%
3.32
Male
Male Gen
GenYY
If lockdown
If lockdown
extends,
extends, I will
I will 48%
3.36 70%
3.80
defer
defer spend
spend onon Milennial Baby
Baby
Milennial
fashion Boomers
Boomers
fashion
43%
3.28 46%
3.27
Female
Female Gen
GenXX

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

On the sub-category perspective,

Spend Willingness Quotient: respondents claim they will engage less
Post Opening of Lockdown with formal categories i.e. Sarees, Trousers
& Suits, Formal Shirts. These categories

Innerwear 77
witness an average of 50% willingness
amongst respondents. Sarees emerges as the
Tops* 65
least with 36%, followed by Salwar Kameez
Kurtis* 63
category with 43% willingness.
Tees 59
Basket of casual categories - Tees, Tops,
Active Wear 58 Casual Shirts and Active Wear, enjoy
Casual Shirts 56 purchase willingness by every 3-in-5
Formal Shirts 50 consumers. Further, every 3-in-4 consumers
cite they will certainly buy sub-categories
Denim 50
that represent essential, basic categories
Trousers & Suits 47
notwithstanding challenging economic times.
Salwar Kameez* 43
The propensity for decrease in average spend
Sarees* 36
across sub-categories mirrors the above
*For sarees, salwars, tops and kurtis – only women respondents trend. Discretionary fashion tending to further
*N=845 N=1,726 | % consumers
segment with skewed demand towards low
ticket, impulse, casual wear.
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Impact of COVID on Indian Fashion Segment - Consumer Study

Value+++ Signals of consumers actively

There are signs of consumers actively
seeking value attributes
seeking value. Only half the consumers cite
discount offering as key factor for brand
engagement. 60% respondents claim they
will actively seek value rather than trend.

Value attributes tend to extend beyond

just price for the consumer. Hence, deep
discount is not rendered as the primary
element to attract customers back to stores.
65% consumers are willing to buy clothes
that cuts across WFM and stay at home.
Every third in five consumer wants clothes
that serve dual purposes of WFH and
occasional trips to office.
Approximately 65% consumers are willing
65
%
to buy comfortable clothing that cuts
across work from home and stay at home
Post lockdown, 60% will invest in
60
%
clothing that helps working from home

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study
The shape of value to move beyond just price
42% consumers claim to have
42 %
no change in their spending
amount post lockdown.
Only 50% consumers will
50 %
shop for fashion if brands
offer discount.
Only 40% are eager to buy
40 %
impulse accessories only
because they not expensive.
© Copyright of Wazir Advisors & Crownit
44% claim to hit gym
44
%
immediately after lockdown &
hence will invest in active wear.
54% consumers claim they
54
%
will tend to buy smart
casual wear.
N=1,726 | % consumers
13
Impact of COVID on Indian Fashion Segment - Consumer Study

Claimed Price Propensity Across Sub-Categories

Innerwear 38 45 17 Increase

Tops* 33 40 27 No Change
Kurtis* 30 40 30
Decrease
Casual Shirts 30 42 28

Tees 28 46 26

Active Wear 27 46 27

Formal shirts 27 41 32

Denim 27 40 34

Trouser & Suits 26 41 33

Salwar Kameez 21 39 40

Sarees* 20 39 42

N=1,726 | % consumers *For sarees, salwars, tops and kurtis – only women respondents

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Impact of COVID on Indian Fashion Segment - Consumer Study
56 %
50
56% ready to switch their
brands if other brands offers
value & smart pricing
61 %
62
61% prefer value offerings at
these times rather than trends
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%
50% consumer state that they are
loyal to their brand & seek direct
to home delivery option soon
%
62% claim to associate with
brands which support good
causes during the COVID
N=1,726 | % consumers
Mixed Response
to Brand Loyalty
These interesting times throw up mixed
responses to brand loyalty quotient. Nearly
56% respondents are ready to change to
and experiment with other brands offering
them value added attributes at smart
pricing. Hence, the simplistic framework of
only vanilla discounting cannot be afforded
by fashion retailers.
In the short term, brands would need to
evaluate the trade-off between brand
salience, urgent need for liquidity, top line
revenue, gross margin dilution to ascertain
the discount quotient.
15
Impact of COVID on Indian Fashion Segment - Consumer Study

Safety First
Safety emerges as a paramount aspect 76 %
74 %
72 %

irrespective of channel: 74% respondents cite

safety as highest priority for both store visits
as well as online shopping.

72% respondents re-balance parameters

BUY
for online channel engagement; claim safety
SAFETY
has ceded delivery speed as first and highest
priority. Also, online channels tend to emerge
high on initial safety association: 75% of 76% looking forward 74% rated safety as 72% feel that
respondents believe online may be safer as it to visit fashion stores the most important online may be safer
but are concerned aspect for both medium as it is
is contact-less. However, nearly half i.e. 45% about SAFETY. contact less.
shopping.
claim they will not engage even with online
channels if safety is not ensured.

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

Accelerated O2O Adoption

Consumers to gauge adequate measures
Prefer to shop online Prefer Safety over deployed before initiating shopping again
as it can control Speedy Delivery
across both channels : online and offline.
contact-less shopping
With lockdown extensions, the cautious
index tends to increase, hence does the lag
Millennials 73% 68%
to re-initiate apparel shopping.
Relative
Gen Y 74% 75% Whilst D2C channels find initial priority
Grading
Across across all the above scenarios, the time lag
Consumer
Cohorts Gen X 67% 71% to visit physical stores is not very distant,
with 15 days gap marking the 40 day
Baby Boomers 90% 75% lockdown and 35 days gap marking the 70
and 100 day lockdown.

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

50 %
56 %

One in three respondents 50% respondents claim 56% claim to look forward
who have never used loyalty to their brand, and to brands and online
online platforms are now hope they offer Direct to platforms partnering to offer
willing to shop online Home options soon value added services

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

Large crowds emerges as key reason 53 %

49 %
48 %

to stay away from malls for 66% of the

respondents. This emerges across metro
and mini-metro Indian cities.

Mixed preference of High Street format vis-

à-vis Malls: 48% respondents claim skew
towards High Street owing to COVID. More
than half the consumers, however, reflect
confidence that brands and retailers will 53% consumers 49% likely to 48% consumers
are positive that prefer high street will start visiting
take adequate safety measures. brands and malls standalone store malls for shopping
would take safety rather than a as they are
precautions, hence mall store
they will continue malls will ensure
to shop at mall required safety
stores measures

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study
Metro
Certain brands and
malls would take safety
precautions, hence will
shop at stores
During crisis prefer to
visit a standalone high
street store rather than
a mall store
will ensure required
safety measures & will
start visiting malls for
shopping
© Copyright of Wazir Advisors & Crownit
Malls : Re-aligned
Non-Metro Efficiency Metrics
Malls to evolve from just engagement,
entertainment to higher efficiency platforms
51% 56%
i. Book a shop visit to enable data, analytics
on consumer, shopping behaviour &
trends.
48% 51% ii. There will be shorter, rarer customer visits
and hence retail metrics optimization
would be imperative.
iii. Potential partners for last mile delivery.
SOPs, safety norms, best practices to evolve
44% 54%
as Customer Confidence Tools. It would
be essential to understand, implement
compliance on safety policy & guidelines.
N=1,726 | % consumers
20
Impact of COVID on Indian Fashion Segment - Consumer Study

Attributes Ranking Across Fashion Formats

Assortment & Width | Safety Elements | Service Grid

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Impact of COVID on Indian Fashion Segment - Consumer Study

Horizontal & Vertical online formats enjoy a

high, distant perception on safety parameters.
Safety Factors They seem to continue to leverage the grid
of services developed during the pre-COVID
Safety Parameters
times. Digital channels, as enablers for
EBO
Pre-COVID 71 57 52
Large Fashion Department communication and consumer engagement,
Stores & Retailers
Post-COVID 74 54 54 emerge strong especially in these contact-less
Horizontal Online Platforms
times.
Local Popular Multi Brand
Outlet
Contactless delivery & payment options The factor of trust and legacy consumers
Unorganized Apparel
Pre-COVID 84 66 43 Neighborhood Store associate with organized brick and mortar
Vertical Online Platforms (B&M) formats lends strongly to re-enforcement
Post-COVID 84 69 44
even during these challenging times.

Exclusive brand (EBO) as well as large

Enable digital transaction
department (LFS) stores to respond with nimble
Pre-COVID 81 60 51
and agile direct-to-offer consumer access
Post-COVID 80 63 46 models, engage on safety quotient, create
interesting unique experiential tenets, enhance
accelerated digital adoption for customer
N=1,726 | % consumers connect.

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Impact of COVID on Indian Fashion Segment - Consumer Study

Assortment & Merchandise

Entire range under one roof Wide collection of styles

Pre-COVID Pre-COVID EBO
64 62 53 65 57 54
Large Fashion Department
Stores & Retailers
Post-COVID 66 63 50 Post-COVID 72 57 54
Horizontal Online Platforms
Local Popular Multi Brand
Quality of the Garment Range available for overall occasion Outlet
Unorganized Apparel
Pre-COVID 64 62 56 Pre-COVID 68 58 50 Neighborhood Store
Vertical Online Platforms
Post-COVID 63 62 60 Post-COVID 72 58 50

Price & Value for money Ease in selection and choice

Pre-COVID 70 54 49 Pre-COVID 65 59 55

Post-COVID 75 50 50 Post-COVID 70 56 50

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study

Service Grid
Ease in Trials
Availability of COD, return policies,
Pre-COVID 64 62 53 customer service & EMI option
EBO
Post-COVID Pre-COVID 84 66 45
65 58 55 Large Fashion Department
Stores & Retailers
Post-COVID 84 68 45 Horizontal Online Platforms
Involvement of the staff Local Popular Multi Brand
Pre-COVID Outlet
66 65 52
Ability & ease of price comparison
Unorganized Apparel
Pre-COVID 73 54 48 Neighborhood Store
Post-COVID 65 61 53
Vertical Online Platforms
Post-COVID 77 55 53
Enable check of product details & reviews
Pre-COVID 76 55 50

Post-COVID 80 60 49

N=1,726 | % consumers

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Impact of COVID on Indian Fashion Segment - Consumer Study
Whilst habits have changed with the virus;
the desire to shop, connect & socialize
remain unchanged amongst consumers.
Brands would need to leverage the Exclusive
Brand and LFS formats to redefine, recreate
the shopping experience. These formats
have not ceded preference even post COVID
prompting that consumers are eager to re-
engage with formats.
Trends such as shop by appointment,
@Home personal shopper, VR store visits
are imperative in the near term, and would
© Copyright of Wazir Advisors & Crownit
be critical for continued relevance. Also, the
inclusion of digital alongwith customer journey
is now impossible to ignore. Its adoption in
solving the immediate last mile availability and
convenience, to lending immersive experiential
engagement, activation and involvement
through relevant content.
Businesses would need to adopt a spectrum of
near term and mid term strategies to re-align,
re-boot and re-capitalize in order to leverage
the re-evolving consumer behavior traits this
unprecedented crisis brings to the fore.
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Impact of COVID on Indian Fashion Segment - Consumer Study

Contact us Research Scope

Email us at info@wazir.in or insights@crownit.in.
• 1,726 respondents
To know more about us, visit www.wazir.in &
• Covered 24+ cities across India
www.crownit.in for more information.
• 8 metros

• Equitable male-to-female ratio

• Age Group: 18-25, 26-35 & 36-60

• SEC: A (70%) and B (30%)

© Copyright of Wazir Advisors & Crownit 26