Muslimah Fashion’s Top Brands in H1 2020 (Index)
We return once again with a new edition of our Top Muslimah Fashion Brands Index for 2020!
This year’s index saw an even bigger expansion with the addition of brands from Indonesia and over 11 online marketplaces including Zalora, Fashionvalet, Tokopedia, and Hijup – revealing the top five performers in each respective market.
The Muslimah fashion industry is one of the fastest-growing segments in Southeast Asia. The region is home to approximately 240 million Muslims, concentrated mainly in Indonesia, Malaysia, Brunei and Singapore – contributing about 25% to the global Islamic market.
A burgeoning industry originally projected to reach $402 billion by 2024, the Muslimah apparel sector experienced a major downturn this year due to the Covid-19 crisis which disrupted Eid sales greatly.
Despite the slower demand, Eid collections were still released and were mainly distributed online as most stores remained closed during the lockdown period.
Contribution Factors and Methodology
We selected competing online Muslimah fashion brands that offered similar products, with similar market positioning, across multiple distribution channels from 1 January 2020 to 30 June 2020. The brands were then narrowed down further and ranked by analysing six key assortment metrics using the Omnilytics dashboard.
Contributing assortment metrics:
- Assortment Size: 30%
- New-in rate: 30%
- Sell-out rate: 20%
- Sell-out rate at full price: 30%
- Discount rate: -20%
- Replenish rate: 10%
Total = 100%
This index was created solely based on the available data, hence certain brands may not be included in the analysis. The purpose of this index is to provide insights into a brand’s assortment performance only and does not reflect the brand’s sales or popularity.
Post-Eid 2020 Results
Strict lockdowns, imposed at the height of the pandemic, dampened this year’s Eid festivities.
As demand plummeted, sales came to a halt and only rebounded at the tail end of Ramadan. Supply chain disruptions also impacted launches and resulted in tighter offerings than in previous years.
With their backs against the wall, Muslimah brands and retailers quickly re-strategised to secure profits. Omnilytics observed a greater emphasis on markdowns, beginning with shallow discounts earlier in the season than usual to entice spending. Discounts deepened throughout Ramadan and boosted sales progressively.
Pricing strategies differed too – brands opted for a collection size-led strategy by reducing prices for larger intakes and vice versa.
These tactics yielded positive results for select retailers. For instance, Zalora’s Eid collection recorded over 20% uplift in sell-out in both Malaysia and Indonesia.
Ultimately, shifting consumer preferences had a pivotal influence on sales. Modest celebrations at home during the pandemic raised the demand for classic and minimal styles, an advantage for brands and retailers with relevant assortments.
What can Muslimah Brands Look Forward to in the Next Half?
Much like the other segments within retail, the Muslimah fashion industry is still on its way to recovery. With the lack of consumer power and lower Eid sales, the first half of 2020 was an undeniably tough period for all.
Lessons learned from Eid acts as a basis for the future of Muslimah fashion.
In an unpredictable new retail environment as evidenced by the sudden shift in consumer preferences during Eid, brands can pre-empt for future changes by experimenting with transitional designs, in line with the seasonless shift currently taking place now.
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