Fast Fashion Positioning: Top 3 homegrown brands with the most newness launched this quarter were Pomelo Fashion, Berrybenka and Penshoppe (41%-44% vs. Zara’s 48%) .
While Pomelo Fashion and Berrybenka justified high newness with strong sell-outs, Berrybenka’s sell-out for the quarter fell below par. With that said, the brand maintained its standing with lower replenishments, in line with the sell-out rates.
High Sell-Out: Majority of the homegrown brands surpassed Zara in terms of sell-out performance. Despite having lower median prices, the result indicated that consumers of the region were supportive of homegrown brands, which largely cater to the Asian silhouettes and styles.
Seasonal Collections than Items: Brands that launched themed seasonal collections, the likes of Pomelo Fashion and Love, Bonito, were able to command high sell-out on above average median price. Consumers related better to the story-telling and inspirational messaging behind a themed collection, leading to an increased appreciation of its design elements, which ultimately translated into purchases at higher price points.
When To Replenish: A product that sold out over a festivity may not see the same results once the celebrations wane. Similarly, a bestseller over a season may not be in demand if replenished in the next season.
Therefore, brands need to be cautious about the timing of replenishment to avoid overstocking issues.
Muslimah Opportunity: SEA continues to have an appetite for Muslimah wear, a market segment that is not fully explored by many homegrown brands.
Poplook and Zalia, the only two Muslimah brands in our list, had high sell-out rates respectively, which demonstrated a strong demand in the segment.
Convergence: While SEA may be diverse in terms of consumer demographics, the homegrown brands observed are blurring the lines, taking their brands across borders as seen in the success of Pomelo Fashion (Thailand-based), Love, Bonito (Singapore-based), Something Borrowed (Zalora’s private label), and Poplook (Malaysia-based) – all with over 70% sell-out in the region.