Opportunities for Online Sustainable Fashion in Indonesia
The Covid-19 pandemic has created an interesting opportunity for consumers to reset their online purchasing habits for the better.
Last week, Omnilytics, Zalora Indonesia and Lenzing textile company came together in a webinar, to discuss how the Indonesian online shopping landscape is evolving during the pandemic and the rise of sustainable fashion, backed by e-commerce.
Our Indonesia Country Manager, Caroline Lie represented Omnilytics during the hour and a half session, hosted by the Jakarta Post.
Covid-19’s Impact on the Online Fashion Market
As presented by Lie, sell-out rates at various Indonesian e-commerce platforms started to improve in May due to many consumers shifting to online shopping. Full-price sell-out jumped by 3% to achieve an average rate of 30.38% during the first three months of the nationwide lockdown.
We also saw a slight increase in replenished products for highly-demanded categories while new arrivals uplifted by 1% in the same period. A bulk of the sell-out was driven by discounts, Omnilytics data found more than 45,000 SKUs marked down for the first time in April and the month after. This can be attributed to retailers rushing to clear backed inventory following a mandate to close non-essential stores.
Newness was on a downwards trend until July when retailers began pushing more assortment online due to further weakening physical sales.
High Performing Categories and Online Messaging
The high performing categories for full-price purchases during lockdown were tops and shoes. T-shirts were the most demanded subcategory under tops whereas sandals & flip flops drove sell-out for shoes. However, the overall performance showed activewear registered the highest sell-out rate at 30.88%, approximately 3% higher than the average sell-out of all categories combined.
Shoes and activewear had the greatest injection of newness, 85% of the shoes detected were newly added between March and September. Activewear followed closely behind at 79%.
Many local fashion brands and retailers addressed the pandemic directly through their online messaging. Phrases like “stay at home” and “at home, at ease” were highlighted on brand visuals and special promotions.
Other popular marketing tactics consisted of loungewear and video call-themed collections to suit life in the new normal under Covid-19.
A Rising Demand for Sustainable Fashion in Indonesia
Tencel, a sustainable substitute of rayon, was highlighted as a key fabric found in many trending products locally. The number of Tencel-based products increased linearly this year, with sell-out rates improving month to month.
The top trending categories using this material were tops, dresses, pants & leggings, jeans and ethnicwear. Tops recorded the most number of Tencel-based products with nearly 600 SKUs, followed by dresses at over 300 SKUs. The use of Tencel was less popular in outerwear, jumpsuits & playsuits and intimates, which only made up less than 21% of the total assortment.
This shows the willingness and positive attitude of Indonesian consumers towards sustainable fashion.
Key Highlights on the E-commerce Market in Lockdown
The main takeaways from this webinar are:
- Online performance benefited significantly from the lockdown. Quick digital adoption by local consumers helped retailers to bounce back during the absence of physical retail.
- Tops, outerwear and activewear were major demand-drivers. Consumers bought into comfort-focused categories that were supplemented by distinct messaging, in-line with today’s environment.
- The growing popularity of sustainable fashion online signals a new market opportunity that retailers can take advantage of, especially as the cost of alternative materials and sourcing becomes more accessible in Indonesia.
To learn more about how Indonesian fashion demand is shifting during the Covid-19 period, read our latest report Fashion Demand on Tokopedia Amidst the COVID-19 Crisis.
You might also like
Market Insights Made Easy for Speed and Precision
With the recent mass digitisation of fashion retail due to the pandemic, merchandisers, buyers, and designers are increasingly relying on insights to power decision-making. The need to move away from gut feel to actionable insights is becoming more urgent given the high level of competition in online trading. For many brands and retailers new to […]
Top 5 Menswear Trends for Spring/Summer 2021
Like most things in this pandemic, the Spring/Summer 2021 menswear trends are not of the usual variety. The runway season itself was atypical, with major brands like Balenciaga and Gucci opting for virtual fashion shows to eliminate any risk of spreading Covid-19. Designers are embracing the new normal not just in the way they present […]
Product Matching: The Wings for the E-Commerce Boom
For the average customer, the entire retail world now fits into a 15” laptop or 5” smartphone. It is true you can find your preferred product for purchase across different e-commerce sites and portals. However have you ever stopped to wonder about the magic that happens behind the screen that allows you to be presented with different options for the same product, same model, and same variant?
How to Build a Demand-Led Pricing Model
In a consumer-driven landscape, a competitive pricing model is one that tallies with consumers’ value perceptions. The knee-jerk reaction during an economic downturn is to aggressively bring prices down to attract cash-strapped customers. However, the sudden drop in prices affects consumer perception, leading to reservations about product quality and long-term value. Adding to the situation, […]
The Spring/Summer Fashion Trends Taking 2021 by Storm
This year’s Spring/Summer fashion trends encapsulate current consumer sentiment in the new normal. With the lifestyle changes forced upon us by the Covid-19 pandemic, the trends that are making waves in the market now are far from those that did in past years. In uncharted territory, historical sales data is moot and the need for […]