New-age shoppers are rewriting the rules in the fast-paced fashion industry, pushing brands and retailers to adapt quickly when launching new products and collections. Fashion labels are under constant pressure to keep up with the demands of a dynamic consumer that values uniqueness, sustainability and trendy styles.
The challenge is even bigger because brands now sell across many channels—online, in stores, through B2B partners, exports and pop-ups. Balancing what to offer and when, especially with different demands across regions in India, while managing the intricacies of inventory, is easier said than done.
“Trends can shift quickly and staying ahead of the curve is crucial. We also face the challenge of balancing global trends with local preferences. For example, while global trends might favour minimalist designs, our local market often appreciates more vibrant and detailed patterns,” said Udita Bansal, CEO and Founder, trueBrowns, a homegrown urban ethnic lifestyle D2C brand which ventured into menswear and offline retail last year. The brand is now present in 10 SIS locations at Shoppers Stop, Iconic and Nykaa stores, with plans to launch exclusive outlets soon.
“Gauging how much customers are willing to spend at any given time is complex, especially with the outside influences such as market dynamics and economic conditions constantly changing,” explained Sujata Biswas, Co-founder, Suta, a women’s ethnic and fusionwear brand that opened its 10th store in Kochi in June. The brand clocked Rs. 75 crore in revenue in FY ’24.
“Social media significantly influences this rapid shift, instantly influencing trends and preferences. For instance, sustainability may be a key focus one moment, but a new event or trend can quickly shift attention elsewhere,” mentioned Kaveri Lalchand, Founder, Love by Kaveri. The brand claims to use sustainable fabrics like cotton, tencel and linen in its apparel line.
Focus on data analysis, continuous product refinement
Brands commonly begin by analysing sales data from the previous year to gain valuable insights into consumer behaviour. They use advanced analytical tools and techniques to enhance the accuracy of forecasts by identifying the specific factors that influenced sales at the SKU level. For instance, did a particular shirt’s success stem from its colour, cut or logo design? Was it especially popular in a certain city or among a specific demographic? These analyses not only unearth nascent trends but also warn of receding trends.
However, experts’ note that while generating consumer insights is important, merging it with creativity is equally crucial. The most successful companies find a way to balance art and science.
To do this, companies must foster a collaborative ecosystem where data informs creativity without stifling it. For instance, predictive analytics might suggest the growing tilt towards sustainable fashion, but it’s the designer who has to transform this data into desirable, wearable art.
Further, real-time feedback loops, where designers get live data on how their creations are performing in the market, can help refine future collections. Most brands vouched for the need for merging data with creativity.
“Our creative process is collaborative and iterative. We involve designers, market analysts and customer feedback loops to refine our concepts. We focus on storytelling through our collections, ensuring each piece has a unique narrative,” mentioned Udita Bansal. She also noted that the brand has invested in advanced forecasting tools and maintains close communication with suppliers to quickly adapt to new trends.
Whereas, Ashwini Seth, Founder and CEO, Dennison, a D2C workwear apparel brand targeting Millennials and Gen Z, explained, “We’ve divided Dennison into two parts: core basics and fast fashion. The core products like Korean fit pants, are available year-round, while fast fashion pieces like cargo pants are designed based on trends. We keep MOQs small and replenish if they sell well, while constantly reviewing customer feedback and market trends.”
He also highlighted how his brand finds inspiration from various international brands, particularly in European markets. Given that fashion in India often trails behind Western trends by about 6 to 12 months, it’s crucial to stay updated on these influences. His brand utilises free fashion forecast reports from sources like WGSN and long-term partnerships with platforms like Myntra’s brand accelerator to offer valuable design insights and consumer trends, guiding their decisions on which trends to follow.
“Fashion trend forecasting involves using platforms like WGSN to analyse data on emerging colours, fabrics and silhouettes based on global market analysis,” said Pinky Rai, Team Lead Design, The Indian Garage Company. The menswear brand, which achieved a gross merchandise value (GMV) of Rs. 300 crore in FY ’23, has now ventured into offline retail with its first exclusive brand outlet (EBO) in Bengaluru.
Another Bengaluru-based menswear brand Aristobrat focuses on monochromes and neutrals to create collections that are inherently versatile and easy to mix and match, as highlighted by its Director and CEO, Karan Singh. Founded in 2019, the brand concluded FY 2024 with around Rs. 15 crore in revenue and this fiscal year, the brand aims to double its revenue, targeting Rs. 50-60 crore over the next two to three years.
“By exploring markets in Europe, Southeast Asia and attending premium fashion events, we gain valuable insights that shape our designs. We also study our competitors such as Madura Fashion & Lifestyle, Rare Rabbit, Jack and Jones as well as new brands like Snitch, to stay current with the constantly changing fashion scene,” said Abhishek Sharma, Brand Head (Product Design, Merchandising, Business Planning and Growth), Blackberrys Menswear. The brand, which has over 380 EBOs, recently launched its TechPro Collection, featuring garments that offer stretchability, wrinkle resistance and Smart-Dry technology.
Abhishek further added that Blackberrys collaborates with over 800 retailers nationwide, each contributing unique perspectives on market opportunities and consumer behaviour. This approach has greatly formed the brand’s strategy. For example, while traditional chinos had their niche, the brand identified the growing demand for cargo pants. By transforming cargos into versatile garments that could be styled for both formal and casual occasions, the brand embraced multi-utility designs, catering to diverse preferences and lifestyles. In addition to data-driven approaches and the emphasis on creativity discussed earlier, the time it takes to complete the fashion cycle also varies depending on factors like a company’s business model and retailers’ needs. Brands like H&M and Zara, for instance, can make quicker decisions and skip certain steps since they manage their own stores. Even within the same brand, product timelines differ; women’s tops might be updated more frequently than women’s jeans. Basic items like plain white T-shirts don’t follow seasonal trends, making their sales easier to predict.
Meanwhile, brands in the handmade apparel sector don’t strictly follow fashion forecasts. “While we do take colour predictions into account, our focus is primarily on traditional elements like embroideries and hand blocks. Trends play a minimal role here, as authenticity is key. For example, even if current trends favour palazzos over salwars, both styles remain timeless in Indian fashion,” said Pratanksha Gupta, Co-founder, Chowkhat. Founded in 2020, Chowkhat collaborates with over 5,000 artisans across India with 90 per cent of its sales generated through its website.
Pratanksha added that when forecasting colours, they observe street fashion, track online trends and watch major fashion shows to understand global colour schemes.
Strategies for inventory management
One of the key challenges of inventory management is predicting demand accurately. “To address this, we use advanced inventory management software that provides real-time data and analytics. Regular inventory audits and close collaboration with our suppliers help us manage these challenges effectively,” said Udita Bansal.
Echoing similar sentiment, Anurag Saboo, Co-founder, DaMENSCH, pointed out, “We manage inventory through sophisticated forecasting models and real-time sales data analysis, allowing us to adjust production quickly based on actual demand.” The Bengaluru-based D2C menswear brand this year raised Rs. 21.62 crore (about US $ 2.5 million) in an extended Series B round from its existing investors – Matrix Partners, Saama Capital, Whiteboard Capital and A91 Emerging Fund.
“We keep a safety stock to handle unexpected spikes in demand. Strong relationships with suppliers allow for quick restocking when necessary. We also use a just-in-time inventory system to minimise excess stock and reduce costs,” emphasised Priyanka Gadia, Founder, Appapop, a budding Mumbai-based fashion brand that claims to use only eco-friendly and ethically sourced materials.
According to Ashwini Seth, stagnant and fast-moving inventory poses major challenges to businesses. He cited the launch of Dennison’s denim cargos, which sold out in just seven days. Initially believing the products weren’t live, data revealed they were, but they couldn’t replenish quickly enough. Initially, they assessed performance after 30 days, but now, with a new AI tool, they track live data more frequently. This helps them quickly spot fast-selling items and include them in a 75-day replenishment plan. For slow-moving products, the AI flags items unsold for 90 days and marks them for discount strategies after 150 days, shifting the focus from profitability to customer acquisition.
Abhishek explained that Blackberrys Menswear categorises inventory into best-selling staples and fashion-forward pieces. High-demand products are released early, while trendier items are introduced later based on their potential and market response.
“At the heart of our inventory management is the ROC (Round O’Clock) program, allowing us to order stock every 15 days and quickly adapt to market changes. We’ve also streamlined our product range, reducing SKUs by 35 per cent to focus on best-sellers,” said Abhishek.
Aristrobat follows a strict sell-through policy, aiming to move 2 per cent of a product’s inventory daily. For example, if they stock 500 units of a particular garment, their target is to sell at least 75 per cent of it within the first 30 days.
The brand, like its peers, categorises its products into core and seasonal collections. Core items, always in stock, are staples in their lineup, with fabric procured year-round to maintain consistent availability.
“We choose fabrics and materials that align with our brand values and are readily available,” stated Aparnna Gupta, Founder and CEO of Beachbum, a D2C resortwear label with a store in Goa. She further added, “Our VR stores feature automated software that tracks inventory levels in real-time.” For brands working with artisans, achieving quick turnaround times for new designs poses challenges due to the extensive hand embroidery involved, which can take 4 to 6 weeks (or longer) per piece. “We mitigate this by physically stocking the fast-moving styles, and for custom orders, we provide customers with clear delivery timelines and regular updates,” said Devangi Nishar Parekh, Managing Director, Aza Fashions. The multi-designer retailer offers a wide range of wedding couture, festive fusion and contemporary apparel for women, men and kids, along with designer jewellery and accessories. Aza Fashions features over one million styles from more than 1,500 designers across India.
Devangi further mentioned, “With nine stores in Mumbai, Delhi, Hyderabad, Kolkata and Ahmedabad, plus a strong e-commerce platform for our international clientele, we can rotate merchandise between locations. We purchase some items outright but also operate on a sale-or-return model and a made-to-order basis for many styles.”
Similarly, Chowkhat produces a limited inventory of new products, allowing the brand to gauge demand without overstocking, such as creating only 20 pieces in a small size for a specific design.
| How to ensure quick turnaround times The fashion cycle has three main phases: planning, design and product development; selling; and production and delivery. Each phase can last anywhere from 12 to 30 weeks, with the planning and design phase typically being the longest and most variable. This phase has the greatest potential for compressing the calendar.In the first phase, the finance team sets financial goals while creative teams decide the collection’s themes, looks, fabrics and colours. They also create a master plan detailing the collection’s size and pricing, like having 12 styles of pants in a specific price range. In some companies, finance and creative teams work separately, leading to inefficiencies. However, top companies have formed a central merchandising team that includes members from both sides. According to a report by McKinsey & Company, this team collaborates early in the process on creative direction and financial targets, which can reduce unnecessary changes and cut up to five weeks off the initial phase.Whereas, opportunities for shortening the production and delivery phase are fewer, but still meaningful.For example, at Suta, the emphasis is on minimising logistical issues between each stage. “If our fabric is being made in one location, we strive to have all subsequent processes, like dyeing and embroidery, occur in the same or nearby places. Defining the entire production plan at the outset is also crucial,” stated Sujata Biswas.In response to unpredictable consumer and business landscape, many brands have turned to Minimum Order Quantities (MOQs). Ashwini Seth shared, “Currently, we focus on producing small MOQs, typically between 200 and 300 pieces per style and colour. This approach has been a lifesaver for us. Over the last ten years, we’ve encountered less than 1 per cent to 2 per cent of dead inventory, which has not adversely affected our cash flow or space requirements.”To further expedite the turnaround time, the brand has recently opened an office in Noida and partnered with factories within a one kilometre radius, aiming to produce items in just 25 to 35 days. |
