‘Fashion industry should shun discounting, adopt hyper-personalisation’
The fashion retail industry is contemplating moving away from “discounting” and embracing hyper-personalisation (close to bespoke model) to shore up its balance sheets and stop margin erosion, hinted industry captains.
Domain experts, who spoke at the India Fashion Forum (IFF), an industry intelligence summit, held in Bengaluru, further said several pressing challenges constantly confronted the industry and therefore urged the fashion retail community to move away from conventional discounting practices and embrace data-driven personalisation which may lead to better business impacts and enhanced customer satisfaction.
Suparna Mitra, CEO, Titan Watches & Wearables, highlighted the detrimental impact of unsold inventory resulting from heavy investments in large-scale production.
“The perpetual cycle of excess stock leading to discounted rates threatens the financial health of fashion businesses. However, a deeper understanding of consumer behavior presents a potential solution,” she recommended.
Echoing similar sentiments, Shailesh Chaturvedi, Managing Director and CEO of Arvind Fashions cautioned the industry against discounting and commoditisation.
“Today’s consumers are discerning and savvy. They recognise the facade of discounts and demand authenticity. Our industry must
Experts noted the detrimental impact of unsold inventory resulting from heavy investments
transcend pricing and differentiate through innovation to remain competitive,” he asserted.
By harnessing disruptive technologies such as generative AI and customer data algorithms, fashion brands would know consumer desires more precisely, Mr. Chaturvedi, who is also the Chairman of the India Fashion Forum, added.
Shivanee Dutt, Director, Brand Marketing & Merchandising, Snapdeal, emphasised the critical role of personalised experiences in engaging discerning consumers. “Tailored communication strategies driven by consumer data insights are essential for resonating deeply with today’s audience,” she said.
According to participants, the integration of generative AI, from chatbots to personalised content creation and data visualisation is revolutionising marketing strategies and reshaping the entire fashion retail landscape in India and globally.
Value creator
Amid the evolving nature of consumer behaviour and the importance of leveraging technology to meet changing demands, technology would be the largest value creator, observed Saloni Nangia, President & MD of Technopak Advisors while adding, “AI will be an enabler and a disruptor, and sustainability will continue to hold importance.”
Murali Balan, Co-founder of Tenovia, an e-com analytics firm, emphasised the transformative power of data analytics in guiding strategic decision-making. “Data-driven insights unlock opportunities for personalisation, enabling brands to offer bespoke experiences that transcend generic marketing approaches,” he pointed out.