MUMBAI: Fast fashion was on a slow lane in the last fiscal year. Sales growth slowed for top retailers and fast fashion brands, show the latest regulatory filings of Marks & Spencer, Zara, H&M, Levi's, Lifestyle , Uniqlo, Benetton and Celio. The bottom line too had taken a hit, with most brands posting lower profits in the fiscal year ended March 31.
Sales growth of H&M and Zara fell from 40% in FY23 to 11% and 8% in FY24, show the filings with the Registrar of Companies. Levi's growth slowed to 4% from 54% in FY23, while that of Uniqlo halved to 31% from 60%. The current year is not looking good either, as sticky inflation and stagnant income weigh on consumer spending on discretionary products, say experts.
Devangshu Dutta, founder of retail consulting firm Third Eyesight, said job market has been under pressure and slower income growth for urban consumer impacted demand, a trend likely to continue even during FY25. "There is a visible slowdown led by the urban middle class who buy branded products. These brands have been targeting young upwardly mobile consumers, who are tightening the purse strings due to the current economic circumstances of hiring slack and fewer jobs," said Dutta.
"The situation is not hunky-dory at all, and this will continue over the next few quarters." Marketing Performance Marketing for eCommerce Brands By - Zafer Mukeri, Founder- Inara Marketers View Program Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metl.
