The business of fashion is about handling constant change. Whether it is a change in technology, trends, or customer preferences, fashion businesses must adapt and innovate at all times to beat the uncertainties and competing pressures of this industry. This can prove to be quite challenging, having to launch new products, scale the business, market & brand, while simultaneously being profitable as well.
A panel discussion titled ‘Fashion 2024 & Beyond: Adapting to Changing Innovation Dynamics’ at India Fashion Forum 2024 explored the importance of innovation in the fashion retail industry which constantly faces change. The panel also discussed issues that need to be addressed by fashion businesses.
On the panel of experts were:
- Anshu Grover Bhogra, CBO, Forever New
- Diksha Bhatia, Founder, Gioia Co
- Mansi Lohia, CEO, Blackwatermelon
- Rohit Aneja, Director – Grapevine Designs, CEO be-blu! Lake Como, Director-Paragon Apparels
- Sean Ashby, Founder & CEO, aussieBum
- Swikruti Pradhan, Founder, Rustic Hue
- Yogesh Kakar, Chief Product Officer – Tommy Hilfiger & Calvin Klein, PVH Arvind Fashion
The session was moderated by Devangshu Dutta, Founder & Chief Executive, Third Eyesight.
Dutta began the discussion by asking Forever New’s Anshu Bhogra about the competition between planning and creativity in a constantly changing market. He also asked Bhogra about how she perceives this dynamic.
Bhogra stated that innovation is a necessity in the fashion industry and she considered innovation as adapting to changes in the consumer. But prioritising profits is as important for her. She further explained saying, “So even if it is innovation, we make sure it is giving us the returns, it is giving us the profits. Giving an example of how we have adapted to changing customer change. 70% of our business comes from our loyal customers. They come to the mall every three weeks. So we moved away from a traditional seasonal drop to dropping new options every week so that she finds newness number one.”
Bhogra explained how Forever New, an Australian brand, has adapted to the Indian consumer. “While all the fits, styles and silhouettes were based on women who are taller and well-built, the brand has well adapted to its shorter-built Indian audiences while maintaining the signature and ethos of the brand,” stated Bhogra.
“So it is an 80-20 rule. We keep on doing something new but the bread and the butter still comes from that 80%. We start the innovation with 20% and when it starts giving us results, we expand it. So, making sure that we are not a top line hungry brand. But this is what we do to balance profits and innovation,” Bhogra said, further explaining how her brand balances innovation while earning profits.
Dutta then asked Gioia’s Diksha Bhatia about her transition from being a manufacturer for other brands to launching her own brand Gioia Co.
Bhatia shared that for more than 30 years, her company had been working with international accessory brands, making their products for them until in 2021 when she finally launched Gioia Co. The purpose behind launching her own brand was simple – she wanted to use her manufacturing expertise and cater to the Indian audiences who went overseas to buy from international labels without knowing that the products were made in India.
“We thought of manufacturing the same international quality standard product and making it available in India at a much better price with the help of technology and innovation,” said Bhatia. She highlighted sustainability and timelessness being core values of her brand. Her brand uses leather – which is quite durable and focuses on timeless designs which are basic and practical at the same time. But when it comes to innovation, Bhatia explained that they are always open to feedback from the customer while also taking into account the changes brought by each season. “We fine tune our designs as per the feedback which brings more utility to them.”
Balancing Heritage & Innovation
At this point, Dutta asked Mansi Lohia of Blackwatermelon about the need for balancing heritage with innovation and how she incorporates that in her business. Lohia emphasised that just like art creates history, a brand also encompasses culture, and it creates history. She cited an example saying, “Jesus is a brand in itself. It created Christianity; Roman architecture is a brand as it has a heritage value.”
She compared that to her own brand and shared that they maintain classic designs, including the shapes, structure, leather, silk, but innovate with every artist that they get. “The personality of the brand changes to the personality of the artist that we get every year which puts the artist at the forefront. In that, it becomes more than an aspirational brand, it becomes more emotional. So it is luxury with a purpose, which now I feel the market is heading towards,” she further explained.
Additionally, Lohia noted that India has the potential to make its mark in the luxury market by leveraging its rich heritage. Lastly she added that she aims to incorporate neurodivergence into the art and design processes at Blackwatermelon.
From International to Regional
Dutta then moved to aussieBum’s Sean Ashby asking him about the challenges his brand faced while stepping into the Indian market. “How do you keep the core steady and yet meet the market changes?”
Ashby shared the journey of his company, which started from his personal experience as an Australian embracing the beach lifestyle. Initially rejected by his own country’s retail sector for being ‘too Australian’, the brand has since achieved significant success, including becoming the third largest traffic internet site in India.
aussieBum represents disruptive innovation and has introduced unique products like banana leaf-infused underwear, bamboo fabric, and vitamin-infused underwear. Ashby emphasised his brand’s innovative spirit, highlighting the introduction of a ‘Viagra-infused underwear’ as a playful example.
He mentioned collaborations and recognitions, such as appearing in the Avengers movie, to underscore the brand’s reputation as an innovator. “And when you hear the price that was paid to be part of that, you would say they did not have you as a sponsor because they wanted your money, they wanted you because you are an innovator,” he exclaimed.
Ashby advocated not being a conformist when it came to fashion, instead he encouraged disruption. He stressed the importance of recognising and listening to different generations and cultures. “There is enough room for everyone. But at the same time, looking at different cultures helped grow the market and make it more relevant. Today its growth is 15- 20% year on year in India,” he stated.
Ashby discussed the potential of manufacturing in India due to its cost-effectiveness and ability to give back to the community. “It gives me the opportunity to take out business from a country whose values I do not necessarily abide by and start manufacturing in India. Especially after I got to know that you can have 50,000 pieces made in India and it would still be sustainable and economical for everyone,” he said.
He also acknowledged the importance of AI and the need to create sustainable roles for people as traditional jobs become redundant. He concluded by emphasising the demand for innovation and relevance from Indian men, and how Aussiebum has successfully tapped into this market in just six months.
Dutta then moved to PVH Arvind Fashion’s Yogesh Kakar with a similar question – since you Kakar represent multiple international brands, how do you balance the global brand ethos and the brand structure and bring that into India?
“And then within India, having a national strategy and percolating it down to the regional level and making sure that we take care of all the divergences and the diversity that is in the country. What is your take on the innovative edge to making that happen?” Dutta asked.
Kakar started by explaining that most European and American brands are roughly 40-60% right for the Indian market. “Beyond that is really how well embedded you are into the global system. You bring in the innovations, modify it to the tropical country, first, at the country level, and then at a regional level to stay relevant for the long term,” he said.
Innovations often start at regional levels before gaining national or even global significance. Kakar cited Nokia’s early success as an example of this phenomenon. He then proceeded to give his own brand’s example – Recently, Tommy’s brand introduced a tailored clothing line in India, specifically designed to cater to the surge in ceremonies and weddings.
By tailoring products to the specific preferences and needs of regions like Bihar, Jharkhand, and Madhya Pradesh, the brand has been able to achieve great success. The variations in designs for these regions compared to metropolitan areas have attracted attention from countries worldwide, showcasing the effectiveness of localised innovation on a global scale.
Bhogra chimed in here sharing her own experience of tailoring her brand as per the Indian audiences. Forever New is meant for Australian women who are taller, the products’ necklines deeper and armholes bigger. Bhogra shared how they tweaked those things, and the silhouettes to make the brand more suitable for the Indian customers. And after they had done that, they made it regional, never losing the ethos of the brand.
“All we did was put a small button for the neckline to be proper. We did our own customisations. Maxi dresses do not sell well, so we made them midi-dresses. So a few style changes, and I would call them innovations, which made them right for the Indian customer. And it happened over a period of time. It did not happen overnight,” Bhogra explained.
“Regionally, the merchandising strategy was tailored to suit diverse climates and seasonal variations across different parts of India. This involved customised product packages for specific regions, accounting for seasonal differences,” Bhogra further explained. She emphasised that these changes required careful planning, including innovative merchandising strategies and inventory management techniques.
Overall, these adaptations facilitated the transition of the brand from its Australian origins to a more localised and regionally relevant identity in India. “A great merchandising strategy, top notch inventory management. So a lot of innovations and adaptations helped us to move from a purely Australian brand to an Indian and a regional brand,” she stated.
Dutta then asked Rohit Aneja of Grapevine Designs about his take on innovation. “You head three global brands, how do you see innovation in terms of using the manufacturing capability in India to innovate better, faster and getting more relevant products into the market?” he asked.
To this Aneja replied, “To my mind, it is not just the question of innovating in terms of making it faster or bringing it to the market faster is also because of the fact that there is a manufacturing and a supply chain existence in India, which is very different for a brand in Australia or in Europe or in US, who has to contend with three to four months of predictability predictions and then ordering and then bringing it into to the market.”
Aneja opined that Indian manufacturers can not only bring this faster to the market but also while bringing customisations at the same time.
In India, the language changes every hundred kilometres, there are so many regions that brands need not go with merchandise which is eight sizes and ten colours. The whole fit and design process can bring about a change, maybe in the retail structure, or in custom tailoring.
He cited an example to further explain, “Maybe the tech in manufacturing has to evolve in India to be able to handle this. For example in a Lenskart store – if you go to an eyewear store now, you do not get anything off the shelf. You get your eyes tested first, then they make your lenses accordingly.”
He related this example with fashion retail and said, “Why cannot a fashion brand based out of retail stores can do the same thing that you go back and order garments, fitted it to your requirements, designs, or the way you want it, whether with the technology which is available in terms of digital or in fit patterns and the other 3D modelling, can this, will this adapt the stores? Retail stores will adapt to this.”
Responsible Innovation
Dutta then moved on to Swikruti Pradhan of Rustic Hue and asked her how innovation would look like if done in a responsible way and her vision to make that happen.
Pradhan said her brand Rustic Hue works with handloom weavers and different communities in Orissa which have been using these weaving techniques for many generations now. She explained that Rustic Hue is a research based impact-driven first brand and they care about their brand’s impact on all the stakeholders – whether it is economy, culture, society, or the environment.
“When considering production volumes, it is crucial to contemplate their impact on the environment and the livelihoods of producers. This involves assessing working conditions and environmental sustainability throughout the supply chain. By meticulously examining each stage of production, from sourcing materials to delivering finished products, we can understand the broader impact on the environment and society,” she said.
Pradhan strongly advocated prioritising sustainability is essential in the long run, and it is a principle she actively upholds and implements in her brand. This perspective underscores the importance of balancing large-scale production with sustainability practices and ethical considerations.
Conclusion
Towards the end of the session, Dutta asked all the panellists to share their 30-60 seconds thoughts that they would like to leave the audience with for the day.
Diksha Bhatia started first with her thoughts. She stressed the importance of manufacturing the products in India, instead of making them for other countries. “I think there can be a lot of things we would like to do, but playing out on your strengths is most important. And manufacturing is our strength. So I think we should make the most out of it,” she stated.
Swikruti Pradhan urged the audience to become conscious consumers and support sustainable fashion and truly become aware of their surroundings. “What is happening and what would become the life of the few generations, what we are going to leave them with. So I think we should carry the responsibilities of all these thoughts,” she said.
Rohit Aneja started with Pradhan’s ending note and talked about sustainability in a real sense. “Sustainability has been talked about a lot. But most of our buzz is about material sustainability. We are talking about recycling pet bottles and making polyester again. Everything is about materials sustainability or recycling materials.”
However, there is a significant aspect of sustainability related to consumer demand that is often overlooked. A considerable portion of goods manufactured worldwide end up in landfills without being used, especially in Western countries like Australia, Europe, and the US. “Most of the brands, when we say that one third of the goods manufactured in this world go to the landfills without having been used, and one third is bought by the people and they do not use it, they live in their wardrobes,” Aneja exclaimed.
This wastage is exacerbated by brands that sell products at high prices but generate low profit margins due to inefficient supply chains. Major brands like H&M and Zara, despite selling products at a significant markup, only show small profit margins.
This inefficiency contributes to the wastage and landfill overflow. To address these sustainability challenges, Aneja emphasised the need to shift focus back to customisation and management of supply chains accordingly. Technological advancements can facilitate this transition, potentially leading fashion retail in a more sustainable direction.
Anshu Bhogra added her thoughts saying, “When we talk about innovation, it can only happen when we move from fast fashion to slow fashion, when we pause, when we think, when we give room for innovation. So I would again urge everyone to go slow – in our consumption, move to slower fashion, move to more innovation, move to more quality. And I think that is where the value can be created.”
Mansi Lohia emphasised the importance of embracing individualities rather than constantly following trends and accepting one’s strengths and ethos rather than following in someone else’s footsteps.
Yogesh Kakar gave his concluding remarks on business longevity and its relation to innovation. According to him, businesses need to make sure that they keep investing in innovation at the right pace or at the right amount, and not go all in at all points of time. He put great emphasis on being a right time adapter and continuously adopting innovations and making sure that they reach the right consumer who will appreciate it.
“This simple theory can make a brand last or a business last for an extremely long period of time. You necessarily do not need to be an innovator, but the consumer of the innovator which carries the innovation to the final consumer,” he further explained.
In his final remarks, Sean Ashby emphasised the practical application of AI in enhancing customer experiences and driving innovation. By integrating AI with databases and tools like Power BI and Power Apps, companies can gain valuable insights into customer sentiment and tailor offerings accordingly.
“So that means that customers in India will only see products that are relevant to them and also the colours that they wear, the size they wear and the image they like to reflect. That truly is where innovation is coming from. It is coming from AI and it is not on its way. It has arrived,” he stated.
