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Forecasts suggest that COVID-19 will wipe off US$297bn from the global apparel market in 2020, a 15.2 percent decline on 2019. The US (largest apparel market) will account for 42 percent of all lost spend, which will contribute to more major chains filing for Chapter 11 over the next few months.

APAC markets, on the other hand, are expected to be in a better position to counter the COVID-19 impact compared to their American and European counterparts driven by the growth in domestic demand. We expect the developing APAC markets including China, India and South Korea to increase their position in the Top 10 global apparel markets by 2023, as mature Western markets lose out. China is expected to pip the US as the largest apparel market by 2023, says GlobalData, a leading data and analytics company.

The 10 worst impacted markets, in terms of value, will represent 85.0 percent of this total loss with mature markets suffering the hardest.

Vijay Bhupathiraju, Retail Analyst at GlobalData, comments: “Though the recovery has already started across the APAC markets, apparel sales will take some time to rebound amid dampened consumer confidence, the slump in tourism, the threat of an impending global recession and high unemployment rates.

“However, some of the lost sales will be compensated by the level of ‘revenge buying’ (sudden release of pent up demand from those willing and able to spend). Some brands across China for instance are seeing store sales return to 80-100 percent of pre-COVID-19 trading levels as the country relaxes lockdown measures.”

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“We believe that ModCloth’s strong brand equity positions it for growth in the future,” said Ashley Hubka, Senior Vice President of Corporate Strategy, Development and Partnerships at Walmart. “We feel good about the progress at ModCloth and believe that Go Global’s team and scale out strategy presents an attractive opportunity for the employees and customers of this beloved brand.”

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The festive season that begins with Onam, peaks at Diwali and culminates with Christmas and New Year celebrations is a period of hectic activities for retailers and e-tailers alike as they aspire to offer the most interesting products to attract the maximum number of consumers.

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Defining why corporate brands are not comfortable to enter the mid segment, Mehta further adds, “Due to the corporate culture, politics and multiple decision levels in the organised sector, it becomes very difficult to the process of implementation at a faster pace. This in turn keeps them way behind the regional players who do not face these issues. Moreover, corporate brands also have multiple businesses and hence their focus may not be only on garments. Current example is of ITC wherein they sold out John Player.”

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They thrive purely on lower MRPs. In addition, the economies are set for the unorganised sector to penetrate deep in the Tier II and III locations within the city and rural markets. They work on easy logistics. They keep themselves light on the stocks and raw materials which help them to react faster to the market changes.”

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Commenting on the launch, Anant Daga, Managing Director at TCNS said, “Keeping up with our commitment to bring something new and unique every season, we are excited to launch our latest Pop Sets collection in association with Livaeco. This season is definitely special for us as we are bringing the perfect amalgamation of festivity and sustainability in the form of vibrant hues and silhouettes.”

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