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The COVID-19 crisis is proving to be a test for businesses with the government announcing a complete nationwide lockdown. While it is hard to predict what the ultimate economic impact of this crisis will be, retail businesses will have to safeguard themselves on three key parameters – disrupted supply chain, delayed or unfulfilled customer orders and safeguarding internal stakeholders.
On the supply side, with manufacturing coming to a standstill, not only are ancillary businesses like those supplying buttons, trimming etc., feeling the heat but also the large number of workers employed in this sector. Manufacturing units are struggling with unprocessed orders and this will further impact future deliveries. Most often, orders are dispatched through surface or sea which means that it may take months before they are fulfilled, and the real impact of this delay be ascertained. The financial fallout of this crisis will also have a far-reaching impact on livelihoods of daily wage earners who are employed in large numbers by the apparel industry. Often workers are paid on a per piece basis and with factories shut, these workers are rendered jobless with no source of income to make ends meet. In tough times like these, it is imperative for all business owners to be compassionate and empathetic towards their staff and employees. Timely salary pay-outs to staff members and an advance payment of wages to the workers in unorganised setups will go a long way in securing their livelihoods and ensuring their loyalty in the long run.
It is also very important to have an open dialogue with employees as rumours tend to spread like wildfire in turbulent times and cause false panic. Keeping the employee morale high and pumping up positivity and optimism is an important task for business owners in uncertain times as such. After all, one must realise that our teams are dependent on us for sense of security and stability.
With sales estimated to be zero during the lockdown period and rising order cancellations from consumers, retail brands will definitely experience a pile-up of inventory. For brands and retailers, the need of the hour is to ensure safety of their staff, manage cash flows, adjust sales forecasts, revise inventory projections, examine marketing strategies and introspect how operations will be carried out. Thinking smart and modifying the value proposition in line with the realities of the market, are the only ways to keep the momentum going once the state of normalcy returns. For instance, apparel brands need to figure whether it still makes sense to release a resort wear or holiday collection when leisure travel is not what people will have on their minds this summer. Business owners will have to think on their feet and make quick decisions basis the market sentiment and customer requirements. Customer experience should not be compromised on and businesses should be ready to spot gaps to fill. Moreover, just like employees, it is important to keep communication open with customers to ensure a long-term relationship with them.
In uncertain times like these, as consumers it becomes important to support small and local businesses who will bear the brunt of this the most. With survival becoming the immediate goal, with inventory pileups and negligible sales, these businesses will bleed unless loyal patrons render their support. With revenues slowing down, these businesses still have fixed overheads such as rent, employee salaries, etc. A few ways in which conscious and mindful consumers can do their bit is by prepaying for products which will be of use at a later date or buying gift cards for use at a later date.
When normal routines are restored, businesses should reflect on their learnings and strategies that worked during this crisis to further prepare for future adversities. For instance, this crisis may result in companies preferring to have multiple suppliers instead of depending on a handful of factories. There is also likely to be a changed consumer behaviour. Such shifts in trends should form a part of the company’s future plans. At the end of it, hope that the COVID-19 pandemic will only be a short-term upset for the economy.
Bare Necessities will continue to operate its site as it has and will run as a standalone and complementary brand to the other eCommerce sites. Over time, for those brands that would like to serve additional customers, Walmart will work to integrate the Bare Necessities’ assortment onto Walmart.com and Jet.com.
“We are constantly working on developing new fabrics, taking inspiration from international trends in terms of colors, cuts and design sensibilities. We are looking at brands like Fendi for embroidery inspirations, and also working very closely with the interiors of Varanasi for the fabrics. So, in a way we have our eyes on all sectors and segments,” explains Bhanjdeo.
Cover Story, a fast fashion brand for women by Future Style Lab, will be launching its new store at Forum Mall, Bengaluru in the coming week. This is Cover Story’s 23rd exclusive store with an existing presence across Mumbai, Delhi NCR, Surat, Pune, Kolkata, Chennai, and many other cities. The store is placed at a prominent location in the mall amidst the most fashionable brands around.This is Cover Story’s 23rd exclusive store with an existing presence across Mumbai, Delhi NCR, Surat, Pune, Kolkata, Chennai, and many other cities
According to Das, the biggest advantage of a social media platform is that a product reaches to consumers in every corner of India – from metro cities to Tier III cities. However, he says product options are limited on e-commerce platforms whereas retail outlets provide more varieties along with latest trends.
Currently, Ethnix has a pan India presence through The Raymond Shop network and MBOs. The brand is retailed from 40 Raymond EBOs, 5 large format stores and 360 MBOs. Going ahead, apart from enhancing their presence across all channels, there is a plan to open 15 stand-alone Ethnix EBOs.
The proposed plan is the result of the company’s engagement with its creditors over many months on the proper path forward for the company’s businesses and other assets. The plan reduces the company’s pre-bankruptcy debt obligations by more than US$ 1 billion. The plan further provides significant near-term cash recoveries to stakeholders through the settlement of potential claims and causes of action against the company’s indirect equity owners that have been at the center of creditor investigations during the company’s bankruptcy cases. These claims will be settled for a US$ 105 million cash contribution by the indirect equity owners to the company, which cash will be distributed to the company’s unsecured creditors. The company also will receive a 3-year purchase commitment from Belk, Inc. for an assortment of merchandise across the company’s businesses, further strengthening the company’s operations.
The brand’s design team has worked closely with Saif Ali Khan; inspired by his own personal style statement and has designed and perfected the line, modelling it on Pataudi lineage and contemporary fashion preferences, to make it relatable for the modern fashion shopper. House of Pataudi is focused on changing the perception about ethnic dressing being limited only to festivals and occasions and bringing it back to every day wear.
The shoes – conceptualised in America and designed in London – are made from the finest Merino wool from Australia, with the insoles made from plant-based castor bean oil and recycled rubber, which promises to offer the best comfort through all seasons in India. The collection was unveiled at a live un-boxing event to reveal sock-free, odour resistant, flexible and lightweight shoes that inherit all the eco-credentials of Merino wool.
The brand opened its first store in Delhi in March 2018 and the second store was opened exactly six months later in Bengaluru. Both the stores are franchisee stores. The Delhi store is spread across 1,100 sq.ft and the one is Bengaluru spans around 2,500 sq.ft. Going forward, average size stores will be between 1,000-1,500 sq.ft.
With growing awareness of global fashion trends, a growing middle class and rising disposable income, the men’s occasion wear market in India is witnessing aggressive growth. Domestic and international brands are taking advantage of this growth, with domestic brands becoming stronger and international brands raising the bar with better pricing and product offerings.