Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India
 

Retail needs smart planning, operational changes to navigate demand crisis

 
Retail needs smart planning operational changes to navigate demand crisis
 

The easing of lockdown comes as a huge relief for fashion retailers stuck with huge unsold inventory. According to a recent report by the Financial Express, though getting the demand back to pre-COVID-19 levels might be a huge challenge for retailers, they can expect some relief with the onset of major festivals during this quarter when apparel sales are most likely to return to FY20 levels.

However, navigating through the 18-month period will require sustained efforts from retailers. They will have to adopt a two-pronged approach to success, meeting demands with agility and making long term changes in their business models.

Saving costs and tapping new opportunities

One of the most important measures retailers need to take is to save money by seeking rent waivers, shutting down non-performing stores, deploying retail staff through a variabilzsed model, freezing all discretionary spending among others. They will also have to plan their Autumn/Winter ’20 collection smartly to avoid being saddled with unsold inventory.

Though many consumers may seek retail therapy to break away from their monotonous lives post lockdown, fear of crowding may curtail store visits. To tap into whatever little demand there will be over the next few months retailers will not only have to make their collections available online but also facilitate doorstep delivery of products through tie-ups with hyperlocal delivery companies etc and tap into the more opportunistic categories like fashion masks, protective wear, work-from-home collections etc.

Operational changes

This crisis will permanently change the buying habits of consumers. Hence, to stay afloat, companies will also have to make certain tactical changes in their operations. This entails:

Make customer exchanges more intimate: One of the ways retailers can drive higher loyalty during this period is by facilitating more intimate exchanges at their stores and also online. They can also adopt a direct to consumer” model and not rely only on e-marketplaces for their sales.

Omnichannel retail: Facilitating a seamless movement of inventory across offline and online stores, will help brands double sales. It will also be critical for these brands to balance the sales from marketplaces and D2C (direct-to-consumer). To achieve this, they should plan for 60-70 per cent of sales to come from online marketplaces and the balance from D2C.

For this, brands will have carefully plan their merchandize and assortment for marketplaces. They can engage in strategic partnerships and joint ventures with leading marketplaces to prevent the downgrading of ASP and unviable discounting in the long run, which can simply kill a brand.

Promote seasonless buying: Seasonless buying is another change that is expected to sweep across the industry in the future. Brands will have to replace the trends of designing a range 8 to 10 months ahead of the season with closer-to-season trends-sensing and buying model. In simpler words, they will have to digitalize their merchandising and planning to cut lead times.

Control costs by minimizing waste: This crisis has taught companies to have a tight control over their costs. Companies will have to reset their cost structure by variabilizing assets and workforce, cutting wastes and applying zero-based costing for their purchases.

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

Indian e-commerce players need better strategies to lure customers

Indian e-commerce players need better strategies to lure customers

      Experts believe without effective e-commerce, India’s post-pandemic economic recovery would be harder than it is now. E-commerce players like Myntra and Amazon are helping physical stores overcome difficulties in delivering... Read more

E-commerce in metros surpasses pre-COVID-19 levels post lockdown: CRED

E-commerce in metros surpasses pre-COVID-19 levels post lockdown: CRED

         A report by credit card bill payment platform CRED states e-commerce spends surpassed pre-COVID-19 levels after the lockdown across Delhi, Mumbai and Bengaluru as more people opted to shop online... Read more

Return to normalcy to fuel popularity of outdoor shopping centers: Report

Return to normalcy to fuel popularity of outdoor shopping centers: Report

     Consumers’ efforts to return to normalcy will expedite the transition from indoor malls to outdoor shopping centers, says data firm Placer. The firm reports a 34 per cent decline in... Read more

Crisil predicts 25-30 per cent fall in revenues of RMG makers in FY21

Crisil predicts 25-30 per cent fall in revenues of RMG makers in FY21

     Crisil Ratings predicts a 25-30 per cent decline in revenues of RMG makers in ongoing financial year due to the prolonged lockdown and lower discretionary spending. The agency expects this... Read more

From casual to need-based, COVID-19 changes consumer’s shopping habits

From casual to need-based, COVID-19 changes consumer’s shopping habits

    Shopping, the favorite hobby of many Indians; especially women, is undergoing a paradigm shift with the pandemic altering not just the modes of shopping, but the products being bought. While... Read more

India expects ‘V’ shape economic recovery from next year: Fin Min

India expects ‘V’ shape economic recovery from next year: Fin Min

     Speaking at a virtual conference organized by the Federation of Indian Chambers of Commerce and Industry (FICCI), finance ministry official said the government was expecting a "V" shape economic recovery... Read more

Apparel brands and retailers defer new launches owing slow demand

Apparel brands and retailers defer new launches owing slow demand

     Apparel brands and retailers have deferred new launches for this season owing to the extremely slow recovery in consumer demand that resulted from the above-mentioned situation, While a big number of... Read more

Designer Archana Kochhar distributes masks to frontline workers

Designer Archana Kochhar distributes masks to frontline workers

     Designer Archana Kochhar and her team understand that no amount of appreciation will suffice to acknowledge the efforts of the frontline workers who are risking their lives without a thought... Read more

Emotional connect, less wastage fuels demand for bespoke fashion in India

Emotional connect, less wastage fuels demand for bespoke fashion in India

    The growing emphasis on quality over quantity is boosting demand for customized fashion in India. With people buying less, their interest in off-the-rack clothes is weaning, feels designer Payal Singhal... Read more

Weekend shopping shrinks as consumers shop during weekdays, office hours

Weekend shopping shrinks as consumers shop during weekdays, office hours

     With consumers venturing out more during weekdays and office hours, the trend of weekend shopping has shrunk to a third. This change is mainly a result of closure of multiplexes,... Read more

MOST POPULAR NEWS
Go to top

Follow Us On:

Face BookDealersForYou

TWDFUpublications

LNDFUpublications

YouTubeDFUpublications

 Copyright © 2020 DFU Publications. All rights reserved.