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Raymond is “cautiously optimistic” about recovery amid the COVID-19 pandemic, its Chairman and Managing Director Gautam Hari Singhania has said. Looking at the 2020-21 fiscal as a “total washout”, the group expects this fiscal to end on a flat note in terms of growth prospects with businesses being hit in the first six months of the current fiscal by the pandemic-related disruptions.

On being asked about growth expectations, Singhania told news agency PTI “the group has passed through a very tough phase for the last six months when everything was closed” due to the pandemic, so there would be no growth this fiscal.

He, however, said that the group has already achieved pre-COVID-19 sales numbers in some of the business segments and even more in some other verticals, though it expects a longer time for the recovery of its textile and apparel business.

“We have a mix bag sector to sector and I think the textile and apparel sector would take a little longer to recover because the wholesale markets were closed for a long time. It took a little longer but I think that we are in the right direction. The good thing is that every week or two weeks, we are seeing little more sales,” he said.

“People slowly, slowly are back to buying and I am confident that the sales will come back,” he added.

The Raymond group, which has its majority business interests in textile and apparel sectors, also operates in segments such as FMCG, Engineering and Prophylactics.

The group had a revenue of Rs 3,186.39 crore for the financial year 2019-20. It reported a revenue of Rs 24.03 crore in the April-June quarter of 2020 and Rs 254 crore in the July-September quarter of 2020.

“This year is a total washout. So I don’t think we will meet 2020 levels but moving forward, a lot of companies have reshaped themselves. They have set new benchmarks and moving forward, I think there is a lot of opportunities for the companies that survived this pandemic, they will come out much stronger,” he said.

The group is also expanding its digitisation in retail and adopting omnichannel approach, however, Singhania said that physical retail would not go down as shopping is still an experience and people would continue to shop outside. He also refuted recent reports that the group is exiting from the FMCG business.

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Positioned as a strong fashion brand offering value with a versatile assortment, SHOEXPRESS collections can be closely associated by fashion forward consumers.

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Available from September, the newly launched carbon-zero TENCEL™ Modal and Lyocell fibers are contributing to this target through reduced production emissions and its industry engagement to lower energy consumption across the supply chain. In addition to offering new sustainable options to the textile and fashion industry, the new carbon neutral fibers show a clear commitment to Lenzing’s earlier announcement of investing more than EUR 100 million in reducing carbon emissions in its operational boundaries and supply chain.

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One of the key drivers for brands post the pandemic would be to dive back into the business in full swing. In order to do so, brands will have to revamp their strategies by exploring new product categories at a cheaper price point, or revitalise their brands to bring in new strategies. Completely diversification would be a global trend due to the heightened omnichannel approach that brands are already beginning to embrace. The global luxury consumer will see a new era, where luxury brands will explore markets with dual strategies; both at an accessible premium/ entry level price point as well as a point where luxury will become more and more exclusive. The middle market consumer will drive sales for brands playing at the lower level whilst niche luxury consumers will become more conscientious towards their purchases.

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When asked about their preference for clothing and home textile products, half of the respondents said they would be more likely to purchase a product described as ‘eco-friendly’ or ‘natural’, whereas over 60 percent of respondents are more likely to purchase products with a ‘recyclable’ or ‘biodegradable’ afterlife. Given the popularity of such terms, there are opportunities for brands to provide more descriptions and greater clarity to the materials, production processes and product afterlife information to their products as consumer education.

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“Textile and apparel industry has been impacted due to lockdown and related lower consumer demand, primary sales as well as secondary sales were impacted in Q1,”said Raymond.

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