In the lead-up to the first-ever 'Republic Economic Summit', which will see the most influential names in the industry and the economic world come together to put the world's fastest-growing major economy under the microscope, Republic World is taking an in-depth look into some of its key drivers. Today, we look into how the COVID pandemic accelerated India’s fashion and cosmetics industry. From making tough decisions to revive the glamour industry to set new trends, one of the largest sectors in the Indian economy showed quite a lot of resilience and has made an impressive comeback during the pandemic.
#RepublicSummit | Get set for the 'India Economic Summit 2021', as the most crucial sectors of the world's fastest-growing major economy come under the microscope & the most influential economic minds air their views, on November 26 on Republic TV https://t.co/3AdouRdizw pic.twitter.com/JmmL10exxD— Republic (@republic) November 20, 2021
With the store closures and the fashion-cosmetics brands going bankrupt along with the absence of supplier protection, the year 2020 seemed like the ultimate end for the glittering fashion world. However, despite the crisis, the industry has proven its relevance to reinvigorate the business. It emerged stronger and better from the crisis.
In a released report titled 'The State of Circular Innovation in the Indian Fashion and Textile Industries' by Fashion for Good, an initiative by Circular Apparel Innovation Factory, highlighted some of the challenges in the country along with the opportunities for innovation and investment. The crisis has brought the structure of the fashion supply chain in sharp focus. The three key areas of innovation in the chain were Supply Chain Transformation, Stock Management, and Digital Acceleration.
With the significant disruption in the demand and supply across the entire fashion ecosystem, there was an urgent need for transformation towards sourcing practices that are more demand-driven and more sustainable on the social as well as environmental fronts. Thus, producing less with recycled content placed brands in a better financial position. According to a research paper titled 'Growing Consciousness of Slow Fashion' in India by Ishita Minda, there was a growing need for slow fashion and the majority of consumers chose to buy handloom apparel over branded ones.
The primary driver continues to be digital channels. During the pandemic and its subsequent lockdown, the rise in digitization, and the advent of e-commerce beauty platforms, the fashion industry in India headed for a major boom in sales. AatmaNirbhar Bharat Abhiyan introduced by the government had benefitted the handloom weavers and allied workers to restore their revenue. It helped them sell their garments on e-commerce sites like Amazon, Flipkart, Nykaa, Myntra, and others. According to a research titled AatmaNirbhar Bharat Abhiyan: a tool to revive Uttar Pradesh handloom sector by Sabiha Khatoon, Ayesha Iffat, the initiative helped the small business owners restore their lost revenue.
According to a report by Media India Group, the cosmetic industry, which constitutes an endless variety of skincare, makeup, and hair products, amounts to a whopping $511 billion and is projected to reach $716.6 billion by the year 2025. India’s cosmetics industry is also catching up well, jumping from a mere $11 billion in 2017, and is expected to close $30 billion by 2025.
Brands like Nykaa, Plum, MyGlamm, and other leading cosmetics e-commerce company has grown into a top destination for various range of beauty products. The brands now also have their own chain of physical outlets, with a revenue of INR 18.5 billion in the year ending March 31, 2020. Plum and Amazon-backed MyGlamm has also grown its sales during the crisis.