Consumer Trends Power Retail

Retailers in the clothing and footwear sectors anticipate strong demand in the coming months. According to an analysis, the second half of FY25 is expected to be robust, driven by the festive season, an increase in wedding dates, and improving consumer sentiment.

The report highlighted that overall apparel consumption remained stable in Q2 FY25. However, growth slowed in July and August due to the early end-of-season sale (EOSS) in June, fewer weddings, and heavy rainfall across several regions. Despite this, consumer confidence improved as the quarter progressed.

The footwear segment mirrored this trend, with sales and footfalls in October meeting expectations. This momentum carried into November and December, fuelled by the wedding season.

Rural markets outperformed urban ones, supported by higher disposable incomes from government initiatives and lower inflation. Value retailers benefited as price-conscious consumers sought affordable options, while premium retailers faced headwinds. Nevertheless, the premiumisation trend persists, with a gradual shift towards organised and branded players.

Looking ahead, the clothing and footwear sectors are well-positioned for growth, with retailers optimistic about robust demand in the months ahead.

With favourable market conditions, a growing preference for branded products, and increased spending power in rural areas, the clothing and footwear industries are poised for sustained growth. As the wedding and festive seasons continue to drive demand, retailers are well-placed to capitalise on evolving consumer trends and deliver a strong performance in the latter half of FY25.

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