Politics is a set of activities associated with the governance of a country or an area. It involves making decisions that apply to group of members. I would have realized that technology is an accessible field at a younger age. I really got interested in technology when I took a role on President Obama’s Technology, Innovation, and Government Reform transition team in 2008 to make recommendations.

Every year countless small, independent designers and brands across the country eagerly wait for two of India’s biggest shopping weeks the India Fashion Week and Lakme Fashion Week. However, this year, things are different as designers face the stark reality of a changed business scenario post pandemic. The two shows took a digital form this year rather than the usual high-energy physical event.

Realizing the importance of craftsmanship

The pandemic highlighted the pressing need to support artisans who are an important part of the valueDesigners face new reality as they ramp up business chain. Designers like Sabyasachi Mukherjee have accepted the importance of supporting artisans. He ensured the well-being of 1,700 strong workforce in the past few months. Along with designer Rahul Mishra, he participated in the India Couture Week, organized digitally by the Fashion Design Council of India from September 18-23, 2020. Mishra launched ‘Lotus Pond’ a collection that focused on exceptional embroidery done by artisans.

The importance of craftsmanship in these turbulent times was also highlighted by brands like Nappa Dori, whose stores in Delhi, Mumbai and London sell finely crafted leather bags, satchels and accessories made by New Delhi artisans. The brand plans to launch a new homeware range called ‘Dori Living.’.

Designers launch new business models

Meanwhile designers in New Delhi and Mumbai have been opening new direct-to-consumer (DTC) channels. Gautam Sinha, Founder, Nappa Dori, believes, to drive traffic for an e-commerce site, brands need to advertise it. Smaller brands are unable to bear these advertisement costs. Hence, they look forward to well-timed and well-executed fashion shows. However, there is a fear among designers fear that digital formats are unable to generate the same buzz as physical shows. Then there is the challenge of attracting wholesale buyers, with reports of a sharp drop in sales due to COVID-19.

Ne business models are being adopted to tide over the crisis. Lakme has launched a new virtual showroom to facilitate B2B transactions and the hub where all the content will reside. The hub will provide a new digital experience for audiences to ‘shop off the runway’ and even choose camera angles to augment the viewing experience.

An opportunity to focus on the detailing of bridal wear

Strict government rules have squeezed the shine out of Indian bridal war market. However, some bridal designers view this as an opportunity to shift focus to the craft and detail of bridal garments. .Though they expect occasion-based bridal wear to continue dominating the market, day wear from international luxury brands and Indian designer wear may have to struggle.

Aashti Bhartia, Managing Director, Ogaan points out, people are either buying things that are well-priced and easy to wear or special things for specific occasions. Darshan Mehta, President and CEO, Reliance Brands, notes a distinct shift towards comfort wear whether it be sneakers and slip-on footwear, polos and casual linen-wear or tracks and loungewear. Some feel the pandemic has created an opportunity to push forward the vision of their brand. And many have moved their retail online or operate through WhatsApp.

Worth over $2.4 trillion global apparel industry, in India the industry employs millions of workers. However, the industry is plagued by various labor rights issues further exacerbated by the pandemic. COVID-19 has impacted India’s garment exports leading to order cancellations, inventory buildups and slower realization of export receivables. It has also affected domestic consumption as new store openings have stopped while existing ones are facing an inventory build-up.

Apparel prices in the domestic market are being impacted as exporters continue to dump their inventory in the domestic market. This is also leading to reduced engagement of casual labor, factory closures and subsequent return of workers to their native places.

Factory closures lead to rising unemployment

Several workplaces across the country are closing down owing to public health concerns and social distancing measures. This has left millions of garment workers jobless. Garment factories in Tiruppur had shut down even before the lockdown as orders from western countries were being cancelled. Two nearby villages – Allapuram and Mannapalayam – suffered the most as all employment in both villages ceased completely.

Garment factories in Bengaluru, Karnataka are suffering due to rising labor protests. In the first week of September, workers employed Shahi Exports’ Unit 8 in Bengaluru refused to enter factory premises as the management had refused to provide transportation services. Most workers employed in the factory cannot afford travelling expenses. Factory management decided to discuss matters with union representatives of Karnataka Garment Workers Union (KGWU) and find an amicable solution.

Promote labor rights

Indeed, it is high time the industry helps garment producers organize themselves within cooperatives. This would enable them to not only access finance and technologies but also facilitates sharing of best practices, boosts productivity and profits, and reduces poverty.

The industry needs to make more efforts towards promoting labor rights and social security, improving health and sanitation, and promoting adequate standards of living. Government intervention in the form of financial assistance, and developmental and welfare schemes can also boost the sector’s growth.

The prevailing crisis has amply manifested the plight of garment workers. In such a situation, the government needs to initiate measures to protect their livelihoods by making various supportive arrangements. The government should ensure maintenance of minimum labor standards in factories. It should trace supply chains in detail and initiate measures to mitigate the exploitation of garment laborers.

Indian e-commerce battle has heated up with Seattle-based Amazon and Reliance Industries fighting over a $3.3 billion deal signed by the Mukesh Ambani-owned firm with the Future Group. The deal, which gives Reliance access to Future’s grocery stores and retail shops in India, is being challenged by Amazon in the Singapore International Arbitration Center.

Deal failure to force Future into liquidation

One reason for the feud is the 4.8 per cent stake that Amazon already owns in Future Retail since September 2020. The Future-Reliance deal doesn’t mention what happens to the Amazon stake if the deal materializes. Amazon argues that the deal debars Future Group from doing business with 30 companies including Reliance. The deal has been temporarily halted by SIAC.

Responding to Amazon’s allegations, Future Group says, its failure to go through with this deal may force their retail unit into liquidation besides causing a loss of 29,000 jobs. On its part, Reliance Retail Ventures believes the Future Retail deal is ‘fully enforceable’ under Indian law. The company aims to complete the transaction in terms of the scheme and agreement with Future group without any delay. Though it already has 11,000 stores across India, its aims to consolidate industry position through this acquisition.

Future growth calls for more collaboration

To realize its e-commerce ambitions, Reliance has already being expanding presence through JioMart, The company has expanded JioMart services to over 100 cities across India and plans to branch into electronics, fashion, pharmaceutical and healthcare soon. The company also plans to tap into Reliance Retail's network of physical stores across the country to fulfill online orders, say analysts.

As both Amazon and Reliance need each other’s expertise, the industry expects both companies to forge some kind of a deal in future. While Amazon needs to expand retail space by setting up more stores and delivery hubs, Reliance needs to upgrade its e-commerce experience. However, any kind of deal between them would be possible only if they let go of their individual egos and collaborate for the industry’s future growth.

As per industry analyst, the Spring-Summer collections 2021 -- between February and June --- will fetch the industry at least Rs 15,000 crore, higher than the Rs 10,000 crore of a usual year, considering the lag throughout the year.

Around 600 garment export units had closed and the units in Noida suffered a collective loss of over Rs 3,000 crore after the outbreak, says a Hindustan Times report.

The industry has been seeing green shoots of late, recording a rise in exports in September after several months of continuous fall on the back of the coronavirus disease Lalit Thukral, President, Noida Apparel Export Cluster (NAEC), said that there was a 90 per cent fall in orders in April this year, which gradually reduced over the last six months. It eventually recorded a 10 per cent rise last month over the same period last year, which indicates that the apparel sector is now on a growth-recovery path.

Thukral, who is also the vice-chairman of bi-annual India International Garment Fair (IIGF), said that 65th edition of IIGF is virtual and was inaugurated by union textile minister Smriti Irani on October 15. This month-long fair aims to help Indian apparel and accessories exporters, who will showcase their latest designs and apparel for Spring-Summer 2021 here. It is expected that 10,000 buyers will be connecting and networking with over 200 participants in the entire span of the fair this time.

Nothing can dampen Indian festive spirit. Despite COVID-19 triggering an economic slump, retailers expect this year’s festive season to be a boom period of the Indian e-commerce sector. Recent reports suggest, Indian e-commerce sector is expected to clock in revenues of around Rs 51,000 crore this festive season that begins with Navratri on October 17. The sector is estimated to grow by 32.8 per cent in 2020 with online shoppers doubling to around 50 million during the festive months, says consulting firm RedSeer. To maintain this growth momentum and meet changing demands, e-commerce players would need to undertake several new initiatives, opines Vijay Bhupathiraju, Retail Analyst, GlobalData. Besides introducing consumer-specific products, they would need to ensure the safety and hygiene of their consumers.

Changing e-commerce trends

Since online shopping bounced back post lockdown in March and April, Indian shoppers have been shopping at a higher frequency and buying across categories. Festive launches and discounts are boosting demand for new products. However, an impending economic slowdown and a fear over job loss is expected to snip their expenditure on non-essential products and goods, says Rajeev Kumar K, Senior Vice-President, Market Development-South Asia, Mastercard.

To encourage shoppers loosen their purses, e-commerce firms need to study their altered consumptions patterns. For instance, social distancing and lockdowns have lowered their need for formal and party wear and boosted demand for loungewear, says Bhupathiraju. Work-from-home has also spiked demand for desk and laptops. Consumers are also shopping for kitchenware, kitchen appliances and home furnishing this year.

To meet these altered demands, e-tailers need to introduce the right product catalogue and undertake appropriate safety measures. They need to encourage digital payments, offer contact-less deliveries, and amp up safety at their warehouses.

Breaking barriers

Along with the increase in the number of online shoppers, their profile too is evolving, say experts. Now, online shoppers have diverse consumption patterns, geographical locations, languages, and levels of disposable incomes. To reach to customers, e-commerce companies are breaking language barriers and using vernacular interfaces. For example, Snapdeal has introduced services in eight languages, while Amazon services are available in six Indian languages and Flipkart is available in five regional dialects.

Flipkart and Amazon have also collaborated with banks for broader coverage of debit card EMIs, alliances with digital non-banking financial companies (NBFCs) for no-cost EMI solutions, and boosting buy now, pay later offerings.

The pandemic has helped e-commerce companies improve their delivery services to rural and areas, says Bhupatiraju. For instance, to increase its festive shipments, Flipkart has onboarded over 50,000 new kiranas while, over 100,000 Amazon-enabled local shops, kiranas and neighbourhood stores from across India are geared up to serve their customers across India.

Multi-brand retail Chain Tablez India aims to achieve a turnover of around Rs 500 crore and expand its network to around 250 stores in India over the next five years, says an Economic Times report.

A subsidiary of the UAE-based conglomerate Lulu Group, Tablez India currently operates 67 stores. The retailer plans to invest around Rs 75 crore every year to expand its retail footprint in the country.

The company aims to boost its presence in digital and e-commerce space as well as physical stores by FY 2026. It will invest around Rs 70 to Rs 75 crore a year for this. Its investments in brands will be re-calibrated post-2021 as per strategy.

The company would fund its expansion through equities as it's a family-owned enterprise. It is also open to expand in other parts of the country. This year, it expects to achieve a turnover of Rs 100 crore.

Tablez India, which launched its operations five years ago in India, operates in retail and food and beverages segments.

Its portfolio consists of brands such as -- Toys "R" Us, Babies "R" Us, Build-A-Bear, GO Sport, and YOYOSO. In the F&B vertical, Tablez holds India franchise rights for Cold Stone Creamery and Galito's, in addition to its home-grown brand, Bloomsbury's.

According to a recent report by e-commerce SaaS platform Unicommerce, Indian e-commerce is growing at a steady pace and is projected to hold an 8 per cent share in the overall retail category by 2025.

As per the report, e-commerce order volumes increased by 31 per cent in the July-September quarter as compared to the same period last year, but the average order value declined by 5 per cent. This is also driven by the fact that in order to lure customers, e-commerce platforms have been doling out discounts and deals on products. They are launching sale events like Amazon’s Prime Day, Myntra’s End of Reason Sale, Flipkart’s Independence Day sale.

During the July-September quarter, orders from Tier II and III cities have almost doubled. This growth is driven by consumers living in Tier II and Tier III cities. The increasing focus on regional markets and the rising adoption of smartphones is driving growth from Tier II and beyond cities, said the report.

Ratings agency Icra estimates Indian apparel exports will decline 20-25 per cent in 2020-21. Due to the COVID-19 pandemic, the agency expects domestic revenues to decline by 30-40 per cent. To recover from this downtrend, apparel players bank on the upcoming festive season as they witness an encouraging buildup in their order books.

Domestic sales to recover in Q3

The recovery curve for Indian apparel exporters has been better this festive season though they remain concerned about a second wave of the pandemic, says Jayanta Roy, Senior Vice President and Group Head, Icra. Economic and retail recovery has accelerated sales in the last few months with exporters diversifying across customers and geographies.

During the pandemic, value brands benefitted from increased downtrading in metros coupled with faster recovery in Tier II and III cities and rural markets. However, domestic retailers suffered due to the lack of online presence, segments being catered to and their presence in Tier II and III cities and rural markets. These retailers are expected to recover sales in the third quarter of FY 21.

Government schemes to boost cash flows

Roy believes, extended online festive sales and further relaxations under Unlock 5.0 will support demand in H2 FY21. Rollback of previously announced pay cuts by some corporate entities and government's festive advance schemes will further improve cash flows and support discretionary spending, he adds.

Although revenue contraction in FY20-21 is likely to translate into at least 600 basis points (bps) correction for domestic retailers, the impact on operating profits will be lessened by companies’ cost rationalization initiatives like renegotiation of rental agreements and transition to revenue-share arrangements, employee-base optimization, salary cuts.

As profit margins shrink and operating cycles stretch, domestic apparel retailers will increase their dependence on debts this year, further weakening their coverage metrics, says Icra.

Indian fashion e-commerce space is going through an evolution as top e-tailers Flipkart, Myntra, Amazon and Reliance Retail are entering new partnerships with offline retailers. As per reports, online retailers are doubling their investments in athliesure and comfort wear by adding new value-focused brands and private labels on their websites.

Festive season accelerates focus on online fashion

Online fashion is becoming the fastest growing category for the festive season. Walmart-owned Flipkart sold over 16 million products during the recent ‘Big Billion Day’ sale, across 40,000 brands and saw a 51 per cent increase in shoppers from Tier II cities over last year. The e-tailer also purchased a minority stake in Aditya Birla Fashion and Retail (ABFRL) for Rs 1,500 crore. Aimed to boost ABFRL’s fashion business and co-create new-brands, the deal makes a wide range of products available to Flipkart across different retail formats. It adds strategic value to Flipkart-owned fashion marketplace Myntra as well. In July, Flipkart had also bought stake in Arvind Youth Brands, which owns the Flying Machine brand, for Rs 260 crore.

Growth in shoppers from smaller cities

Myntra’s ‘Big Fashion Festival’ sale in October saw close to one million new shoppers on its platform, with a 180 per cent growth of shoppers from Tier III cities. Nearly four million shoppers bought 13 million products across various categories during the sale. Around 80 per cent of customers are now spending on online fashion with 34 per cent of these planning to increase their investments in future.

The three big players in the Indian fashion e-commerce space, Amazon, Reliance Retail and Flipkart, plan to embark on their e-commerce journey with great enthusiasm, says Ankur Bisen, Senior Vice President Technopak, Flipkart is planning to boost its fashion business through Myntra while Amazon Fashion launched 6,200 new fashion brands on its portal this year. The e-tailer received orders from nearly two million customers during its ‘Great Indian Festival’ sale. It entered into a special collaboration with Easybuy for offer new styles at affordable rates. This initiative will help the e-tailer provide a wide product range and a reliable shopping experience, says Arun Sirdeshmukh, Head, Amazon Fashion India.

COVID-induced online adoption will be driving the rise of internet shoppers this festive season. According to a RedSeer analysis, there would be around 70 per cent increase in online shoppers to 45-50 million during October sale this year from 28 million last year’s. The gross merchandise value for marketplaces during the October sale would also grow more than 50 per cent from $2.7 billion last year to $4 billion this year.

Smaller e-commerce players Paytm Mall and ShopClues are looking to increase their share of consumer spending in the coming days. Paytm Mall and Singapore-based e-commerce platform Qoo10-owned ShopClues have announced dates for their 2020 festive season sales – Maha Shopping Festival and Mega Maha Bharat Sale respectively. While Paytm Mall has picked October 16-23 for its festive sale, ShopClues’ sale will be live between October 15-21. Moreover, Snapdeal’s Kum Mein Dum Diwali sale will be hosted from October 16 till October 20.

Paytm Mall said that this year’s sale focusing on MSMEs “would be bigger than ever with over 5,500 brands participating in the event.” Over the past several months, the company said it saw more than 2X growth in sales in segments such as groceries, consumer durables, work from home essentials, grooming electronics, toys, kidswear, etc

According to Cushman & Wakefield, the average monthly rentals in Delhi's upscale retail locations of Khan market, South Extension and Connaught Place declined by 14 per cent year-on-year during the July-September period.

According to the data, rentals in malls were stable during the period. At present, malls in South Delhi commands per sq ft monthly rentals of Rs 600, West Delhi Rs 325, Gurugram Rs 350, Noida Rs 250, Greater Noida Rs 125 and Ghaziabad Rs 200.

The consultant noted that key high streets across most cities had become strong F&B (food and beverage) destinations along with other retailer categories across apparel and accessories segments. With most retail businesses being start-ups, they faced working capital challenges and found real estate costs as a big burden.

The consultant said that exits across retail segments were seen and it created new vacancy in the high street locations. With most retailers shelving their expansion plans for the next 6-12 months, new demand was also quite limited.

In such an unprecedented situation, landlords in high streets had to offer lower rents to new space enquiries as active retailers were negotiating hard, Sharma said. In some cases, landlords offered to reduce rents for a short time period or gave rent abatement support.Revenue sharing arrangements as suggested by retailers were also supported by landlords to ensure that retailers stay afloat.