Tokopedia Fashion: Trending Products During Covid-19

Tokopedia Fashion: Trending Products During Covid-19

Written by Aqilah ZailanNovember 6, 2020

Tokopedia Fashion: Trending Products During Covid-19

As Indonesia’s largest online marketplace, the Tokopedia fashion category holds valuable insights on current consumer demand. With the rise in Covid-19 cases throughout Indonesia, the second round of lockdowns have been imposed in several regions, including the capital city, Jakarta. 

Tensions are running high in the face of another economic downturn, with inventory crisis an imminent threat. Retailers have to be able to accurately interpret consumer demand signals in order to maintain strong trade and healthy stock levels.

We’ve analysed ten key brands currently retailing on Tokopedia and delivered actionable insights to support brands in navigating the new round of lockdowns. With an accurate grasp on consumer demand, brands can better prepare for the uncertainty that lies ahead and plan a swift recovery post-lockdown.

The Tokopedia Fashion Category

Sell-out rate for the Tokopedia fashion category fell drastically from 26% to 5% when the first lockdowns took place in April. However, consumer demand saw an uplift in conjunction with Eid in May 2020, a key celebration and trading period in Indonesia.

Tokopedia fashion category's trade movement
Tokopedia fashion category’s trade movement. Source: Omnilytics Dashboard

The surge in consumer spending during Eid was a key turning point for Tokopedia. Sales continued to rise in the months following the festivities. Sell-out rates eventually returned to what it was at the beginning of the year and even exceeded the pre-lockdown average.

The upcoming holiday season bears hope for the Indonesian fashion industry. Consumer spending typically gets a boost ahead of Christmas celebrations. With the right assortment, pricing and discounting strategies, retailers can use the holiday shopping season as an opportunity to bounce back from the impending retail slump.

Best-performing Subcategories on Tokopedia Fashion

#1 Tops

Tokopedia fashion: best-selling tops
Best-selling Tops (This is April, Day and Night, Cotton Ink). Source: Omnilytics dashboard

As the most stocked category on Tokopedia, tops had been performing well even before the first round of lockdowns. Like most countries in nation-wide quarantine, remote working greatly influenced consumer preferences in Indonesia.

Blouses, Shirts and Tank Tops charted the strongest full price sell-out rates, in line with the demand for WFH essentials. Fashionability is not a priority for consumers at the moment, as best-selling styles gravitated towards minimalism and trans-seasonal qualities.

#2 Dresses

Tokopedia fashion: best-selling dresses
Best-selling Dresses (Cotton Ink, Callie Cotton, This is April). Source: Omnilytics Dashboard

Another quarantine staple, trade for dresses remained strong during lockdown. However, consumers confined to their homes have grown partial to relaxed silhouettes. Comfortable qualities for long days cooped up indoors drove demand too. Popular subcategories include Shift, A-line and Shirt dresses, with minimal designs observed as the most replenished products.

#3 Pants & Leggings

Tokopedia fashion: best-selling pants & leggings
Best-selling Pants & Leggings (Callie Cotton, This is April, Day and Night). Source: Omnilytics Dashboard

The primary theme of comfort extends to the Pants & Leggings category. Wide Leg and Slim & Straight Leg pants, as well as Culottes accumulated the highest full price sales. 

A notable demand shift is the absence of Jeans in the best-selling categories, despite its popularity prior to the lockdown. Global denim trends have evolved amidst the pandemic, with a focus on loose fittings and comfort attributes to fit current consumer needs. Retailers in Indonesia can still capitalise on this trend while the market has yet to catch up.

Colour Composition

Tokopedia fashion: colour composition
Colour composition of key brand on Tokopedia. Source: Omnilytics dashboard

Core colours dominated across Tokopedia, as most brands shifted from bright hues to fit the current demand for minimalistic designs. Seasonal colours leaned on the muted and cooler side of the spectrum. Neutral shades, dark hues and earthy tones made up the bulk of colour compositions. 

That said, a few brands chose to diversify their colour offerings with punchy shades of orange, red and yellow. Brands like Beatrice Clothing, Cotton Ink and Ramune went with more saturated colour palettes consisting of multiple shades for added variety.

Additionally, solid colours were the mainstay during lockdown, with few patterned products seen in the brands’ assortments.

Discount Opportunity

Best-selling discounted outerwear
Best-selling Outerwear (Ramune, Lookboutiquestore, Day and Night). Source: Omnilytics Dashboard

The discounted assortment on Tokopedia differed slightly from the full price best-sellers. Demand for tops and dresses remained strong, but outerwear emerged as a sought after category. Sales for discounted Jackets, Sweaters and Vests were strong at an average discount of 45%. This indicates that demand still exists for outerwear at more accessible prices.

Best-selling discounted styles
Best-selling discounted styles. (Cotton Ink & Lookboutiquestore). Source: Omnilytics Dashboard

Omnilytics also observed a shift in consumer preferences in the discounted assortment. Most replenished styles contrasted common WFH tropes, consisting of fitted silhouettes, cinched waists and more elaborate designs. With a 37% average discount depth across all categories, we conclude that deep discounts are not a foregone conclusion. Consumers are still purchasing items with higher fashionability, albeit at a bargain. 

Brands and retailers should take this opportunity to re-categorise their collection in response to demand signals to drive profitability. With optimum discount depth for relevant styles, businesses can further improve margins.

Key Takeaways for Brands and Retailers

Understanding consumer demand will bring value to brands as consumer spending will be down in the second round of lockdown. Constantly monitoring the performance of categories and subcategories will clue brands in on what consumers are buying and what they need to invest in.

Remote working will be commonplace once again, providing an opportunity to drive full price sales. Brands can look into re-assorting their collection to include popular styles in trending colours as demand for work from home essentials surge.

At the same time, brands must revisit discounted assortments and discount depths in line with new demand shifts. We have already established that deep discounts are not the sole solution. Brands should practice smart discounting by evaluating each product’s performance to determine the right discount depth to apply that would maximise margins.

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