Opportunities for Online Sustainable Fashion in Indonesia

Opportunities for Online Sustainable Fashion in Indonesia

Written by Sufiana SharuddinOctober 23, 2020

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%.

Examples of local brand's landing pages during Covid-19. How Covid-19 Created an Opportunity for Online Sustainable Fashion in Indonesia
Examples of local brand’s landing pages during Covid-19. Source: Omnilytics dashboard

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.

Trending sustainable fashion product categories made of Tencel in Indonesia.
Trending product categories made of Tencel. Source: Omnilytics dashboard

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.

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