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

“Discount retailers and value-oriented brands stand to win”: Classic Polo

Usha Periasamy, Director, Brands & Operations, Classic Polo

Usha Periasamy Director Brands Operations Classic Polo“Consumer spending is dramatically curtailed during a recession. Consumers have adopted short-term behaviour during the pandemic that in many cases will become permanent, as a lesson learned from such unprecedented occurrences. Not only do consumers become more financially conservative but also credit may become less available and a large cohort may go into default on their debt, dramatically limiting purchasing power. Consumers will wake up from the pandemic in a new economic reality, changing their commercial behaviours in extreme ways. 

In this climate, discount retailers and value-oriented brands stand to win. This will also boost the trend toward value-oriented store brands. Spending will aggregate on need-based categories, with discretionary categories declining. Classic Polo is a value for money brand and therefore, presumes to stay stable with remodelling of strategies along with the advantage of in-house manufacturing. Future is cloudy and ambiguous for all brands and Classic Polo is no exception. How quick we understand consumer sentiment and resign the marketing blueprint with various permutation combinations will decide the business outcome.”

What is the current situation of India’s garment industry?

The COVID-19 pandemic forced retail down shutters, prompting an atypical disruption of economy. Retailers and brands will face numerous short-term challenges related to cash flow, supply chain, labour force, health and safety, consumer demand and marketing. Post pandemic a very different world would emerge. In order to ensure a future where businesses not only survive but also move ahead, it is critical to predict what a post-pandemic world has in store for us, and then we will begin to remodel to match the new reality. 

How would be the consumer spending be affected?

Consumer spending is dramatically curtailed during a recession. Consumers have adopted short-term behaviour during the pandemic that in many cases will become permanent, as a lesson learned from such unprecedented occurrences. Not only do consumers become more financially conservative but also credit may become less available and a large cohort may go into default on their debt, dramatically limiting purchasing power. Consumers will wake up from the pandemic in a new economic reality, changing their commercial behaviours in extreme ways. 

In this climate, discount retailers and value-oriented brands stand to win. This will also boost the trend toward value-oriented store brands. Spending will aggregate on need-based categories, with discretionary categories declining. Classic Polo is a value for money brand and therefore, presumes to stay stable with remodelling of strategies along with the advantage of in-house manufacturing. Future is cloudy and ambiguous for all brands and Classic Polo is no exception. How quick we understand consumer sentiment and resign the marketing blueprint with various permutation combinations will decide the business outcome.

China has played a pivotal role in the garment industry but after this, can we look at India as the next sourcing hub?

China being the major and main source for all industries, the slowdown will surely have an impact on overall business in a negative way. Significant qualities of our woven fabrics come from China and naturally if goods do not arrive on time, readymade garments industry is affected. If the crisis in China is prolonged, the impact would be severe. It is not easy to shift sourcing destination overnight. But buyers will have to look for alternative sources. Are the buyers ready to pay more is a million dollar question? So, it is not that easy. But yes, companies will look beyond China to survive in the long run. Need to wait and watch.

How is Classic Polo overcoming this challenge?

Those that sell high-demand pandemic necessities online are/will aggressively hire to meet demand they are increasing employee pay and boosting their supply chains. These retailers could well emerge with growth on a consistent scale. 

How do you foresee this fiscal year performing?

The net result for retail may be that a few retailers emerge stronger and many specialty stores and independents no longer exist.  Even well-positioned retailers may find they have to permanently close under-performing stores and make drastic cost cutting efforts to bolster their balance sheets. It’s easy to imagine India having 20-30 per cent less retail space by the end of the pandemic.

Has the government done enough to take care of the garment industry during this challenging time?

Apparel industry bodies are approaching government with various pleas and suggestions to support and combat the situation, which are yet to formalise. Common support on extension of tax payment and other deferments are being extended, while how much this will support businessmen and industry to overcome the pandemic’s residual effect is inexplicable. A significant consolidation of retailers will fundamentally result in emergence of new competitive landscape and partner ecosystem, this is a puzzle to solve. 

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

India records biggest surge in e-commerce retail

India records biggest surge in e-commerce retail

A study conducted by Facebook India and Boston Consulting Group recently recorded the sharpest surge in e-commerce adoption across multiple categories in India compared to other markets, including China, Brazil,... Read more

350 retailers threaten to shutter outlets

350 retailers threaten to shutter outlets

Retailers of around 350 brands including DLF, Ambience Nexus, Pacific Group, Oberoi, Mantri have threatened to shutter outlets in shopping centres if their demands for rent-waivers and new rental agreements... Read more

DFU Live Webinar #3: highlights growing demand for loungewear post Covid-19

DFU Live Webinar #3: highlights growing demand for loungewear post Covid-19

The webinar #3 organized by DFU Publications-DFU LIVE on May 30 on the theme: ‘New Categories Dikhao, Sales Badhao’ (Emerging New Categories for Apparel Retailers, Post-Covid), saw experts stressing on the significant... Read more

Kidswear market to grow at CAGR of 17.9 per cent till 2023

Kidswear market to grow at CAGR of 17.9 per cent till 2023

Euromonitor India predicts, children’s wear market for ages 0-14 years in the country is projected to grow at a compounded annual rate of 17.9 per cent from 2018 to 2023.... Read more

Consumer psyche to witness a paradigm shift post-COVID-19: LIVA study

Consumer psyche to witness a paradigm shift post-COVID-19: LIVA study

For any retailer, it is important to be compassionate towards consumer’s thoughts and feelings. With this in focus, LIVA, an ingredient fabric brand from the Aditya Birla Group alongwith MRM,... Read more

CMAI requests government to levy additional import duty on RMG imports

CMAI requests government to levy additional import duty on RMG imports

The Clothing Manufacturers Association of India (CMAI) has written to the Minister of Textiles Smriti Zubin Irani, and the Minister of Commerce and Industry Piyush Goyal to consider levying a... Read more

India’s activewear market to reach Rs 997.8 billion by 2024

India’s activewear market to reach Rs 997.8 billion by 2024

A report titled, ‘Activewear Market in India 2019’ by ResearchAndMarkets.com, says the activewear market is estimated to reach Rs 997.8 billion by 2024, expanding at a CAGR of ~13.59 per... Read more

DFU Live Webinar #2: Highlights challenges to lure reluctant customers back to s…

DFU Live Webinar #2: Highlights challenges to lure reluctant customers back to stores

The Webinar #2 organized by DFU Publications-DFU LIVE in association with TRRAIN on the theme: ‘Consumer Bulao, Retailer Jitao’ (Spiking Consumption, Winning the Customer Back), saw experts highlighting the challenges involved... Read more

Indian apparel players gear up for the new normal

Indian apparel players gear up for the new normal

With the pandemic impacting both apparel manufacturers and retailers in India, these industry players are preparing themselves for the new normal. Speaking at a recent webinar by the Retail Association... Read more

CMAI welcomes economic package announced by the finance minister

CMAI welcomes economic package announced by the finance minister

CMAI has welcomed the measures announced by Nirmala Sitharaman, Finance Minister, especially those connected with the Government’s support to the MSME Sector – on which she focused on today. According to... Read more

MOST POPULAR NEWS
Go to top

Follow Us On:

Face BookDealersForYou

TWDFUpublications

LNDFUpublications

YouTubeDFUpublications

 Copyright © 2020 DFU Publications. All rights reserved.