Understanding Local Demand: Implementing minimal discounting online did not hinder the homegrown brands in achieving strong sell-outs. In fact, these brands reported good sell-out at full price, which validated that they well understood the local demands despite interpreting global trends in less progressive styles.
Shop at Velvet, Wearstatuquo and Le Bijou portrayed this state of business well as they continue to offer Indonesian consumers the latest trends interpreted in basics and minimalist styles.
Opportunity on Prints: While the homegrown brands have managed to capture the local demand through current offerings, there is an apparent gap in the solid vs. prints department. More than 90% of the assortments this season were made up of solid pieces, while the majority of printed offerings were stripes.
This signals a huge missed opportunity, especially when prints have proven to be a recurring success in-season and cross-seasonally, as seen with florals, polka dots and animal prints.
Next Steps for Brands
Evaluate Pricing Diligently: Pricing is crucial especially if it involves the volume-driver categories, such as Tops and Dresses. Consistent monitoring on price by category and bestsellers help brands spot price opportunities and align against consumers’ acceptance.
As depicted in Chart 3 and 4, the findings revealed huge missed opportunity in the IDR 250,000-300,000 price band for Tops and Pants & Leggings, that homegrown brands should tap into. Getting the price right not only enables brands to capture the right audience but also ultimately help drives sales.
Innovate to Differentiate: Although Indonesian consumers evidently favour minimalist designs, simply recycling similar silhouettes and styles would lead brands to lose market share with the growing number of local and international competitors.
Brands should be empowered to take calculated risks based on data-backed insights, to experiment on progressive assortments in small capsules, or to associate brand with social movements. Wearstatuquo for instance, has joined the country’s fashion industry efforts in promoting sustainable fashion by introducing collections made from rescued fabrics. This appeals to younger consumers, which elevates the brand’s image.