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Government notifies new e-commerce rules

The government has notified new rules for e-commerce companies, including mandatory display of 'country of origin' on their products, and said any non-compliance will attract penal action.

The 'Consumer Protection (E-Commerce) Rules, 2020' will be applicable to all electronic retailers (e-tailers) registered in India or abroad but offering goods and services to Indian consumers.

According to the new rules, the e-commerce players will have to display the total price of goods and services offered for sale along with a break-up of other charges.

They are also required to mention the 'expiry date' of goods offered for sale and the 'country of origin' of goods and services that are necessary for enabling the consumer to make an informed decision at the pre-purchase stage.

Under the rules, e-commerce players have to display details about return, refund, exchange, warranty and guarantee, delivery and shipment, and any other information that may be required by consumers to make informed decisions.

Sellers offering goods and services through a marketplace e-commerce entity will have to provide the above details to the e-commerce entity to be displayed on its platform or website.

Under the new rules, e-commerce entities should not impose "cancellation charges" on consumers cancelling orders after confirmation unless sellers are ready to pay similar charges in case cancellation of orders are from their side.

Further, e-commerce entities will have to provide information on available payment methods, the security of those payment methods, any fees or charges payable by users, and the contact information, among other details, of the relevant payment service provider.

Government notifies new e-commerce rules

Footfall at malls double post Unlock 2.0

Driven by high demand for comfort wear, electronics, skin care and beauty products and bolstered by deep discounts from high-end brands, footfalls at malls have doubled in a fortnight after Unlock.2. Most mall operators say, sale of electronics goods have already reached pre-COVID levels, while sales in other segments, except clothing, are also picking up. Though footfall remain only 30 per cent of the pre-COVID levels, higher sales number indicates only serious shoppers are coming to malls.

There is a gradual increase every week as shoppers get more confident about venturing out. Kerbside pickup is gaining traction and now people have started coming out to dine also. Some luxury brands are even giving appointments to ensure social distancing said Pushpa Bector, Executive Director, DLF Shopping Malls.

After electronics, skin care and footwear segments are witnessing good sales. Categories such as, personal care/grooming, beauty and electronics are seeing great demand post reopening. Currently, a lot of brands are on sale or offering various offers/discounts as this period also coincides with the mid-year end of season sales, said Nimish Arora, Director and CEO, Select Citywalk.

The Phoenix Mills, which operates malls in metros and tier two cities, also said skin care and beauty products are driving footfalls. Vikram Bhatt, director, Enrich Salons, said the salon's outlet in Inorbit mall in Vadodara, for instance, has clocked 50 per cent revenues in July compared to February. NCR-based mall operators Pacific, Gaur and Mahagun have seen footfalls rebound by a third. Mall executives say clear guidelines from the government will help them drive more footfalls.

Footfall at malls double post Unlock 2.0

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 and the greater goal of serving mankind. Hence, they decided to distribute non-surgical masks in the local police stations, BMC office and MLA office. The entire team took this opportunity to thank the government officials, police force, BMC team and the health-care workers for the constant support and endless hours of dedicated duty.

The designer and her team decided to work on a new ‘masks collection’ to add a little colour and pomp to life. These masks are a variation of the basic design to compliment your outfits when you step out. The design sports an extended stole/ scarf.

Stitched by their team of talented tailors, these washable masks are made out of recycled fabric. They were produced while abiding to all the social distancing and safety measures. They expressed their happiness to give back something to the society in their own way. Everyone at Archana Kochhar has put in hours of hard-work and crafted these with all their love to simply bring a smile on your faces

Designer Archana Kochhar distributes masks to frontline workers

High-street retailers stage quicker recovery than malls: RAI

High-street shopping destinations in metros like Delhi, Bengaluru, Pune, Kolkata are staging a quicker recovery than malls for retailers, says a survey by the Retailers Association of India (RAI). Stores in locations such as Connaught Place in the capital, Indiranagar in Bengaluru, Mall Road in Ludhiana, MG Road in Pune and Park Street in Kolkata are currently reporting higher sales than their counterparts in malls.

This is mainly because it is more convenient to visit a store in Connaught Place than negotiating the umpteen number of temperature checks and sanitization tunnels at malls, said a CEO of a global fashion brand. Multi-point checks, closure of entertainment units such as cinema halls and restaurants are keeping most people away from malls which are witnessing 15-30 per cent footfalls compared to pre-COVID months.

Also, the visit time to a store is shorter than to the mall said a senior executive at Pavilion Mall in Ludhiana. As a result of this, large sized retailers performed better at high street than at malls in June.

High-street retailers stage quicker recovery than malls: RAI

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 clothing retailers have still not opened their stores, few prominent brands including Cantabil and FBB have only opened their selective stores with ‘no exchange, no return’ policy.

Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI) underlined that not only new launches have been deferred due to the ongoing unprecedented times, but even the previous plans of opening up new stores have been put on hold.

Earlier, retailers used to operate some stores just for location advantage even if they were non-profitable. Now, business sentiment has completely changed with their’ focus on break-even or profit-earning before expansion into new products or location, he added.

Apparel brands and retailers defer new launches owing slow demand

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, fear of visiting the malls during weekends and a surge in online shopping, view experts.

According to Devendra Chawla, Managing Director, Spencer’s Retail, shopping which earlier used to be a family activity is now largely done by a single member of the family whereby the weekend skew has come down. Sundays, which earlier generated the highest sales, is now even lower than weekdays, says J Suresh, CEO, Arvind Fashions which sells brands such as Calvin Klein, Gap and US Polo Assn.

Similar shopping trends are seen for products like appliances, laptops and smartphones which are currently in high demand as consumers automate daily chores or to aid work and study from home. Ritesh Ghosal, Chief Marketing Officer, Croma adds, sales, which used to be the highest during the pre-COVID period, has now spread more evenly over the entire day.

Consumers are now coming even during the lean hours like early morning or afternoon to avoid crowds, queues outside stores and since there is night curfew in several places.

Neville Noronha, Managing Director, Avenue Supermarts that runs DMart recommends extending shopping hours on week days for essential retailers. This will help them to manage social distancing significantly better, he said.

Weekend shopping shrinks as consumers shop during weekdays, office hours

Work from Home fuels demand for essential clothing in India

The Work from Home trend has boosted the sales of PJ’s in India with knitwear exporters receiving advance payments from European buyers to replenish their stocks for the basic clothing

Demand for daily essential clothing is more from Europe, which has opened up for a long time. There is very good export demand for kids wear, night wear and inner wear. The retail stores are running low on stock demand for fast fashion clothing is still sluggish, said Ashok Arul, CMO, SCM garments, an exporter to leading retail stores of Europe and US.

Tirupur in Tamil Nadu, which exported knitted garments worth about Rs 30,000 core the previous fiscal, has started getting good export business. Raja Shanmugam, president, Tirupur Exporters Association (TEA) noted a growing demand for night wear, children wear and inner wear.

Work from Home fuels demand for essential clothing in India

Allow retailers to operate till 9 pm, urges RAI

The Retailers Association of India (RAI) urged the state government to allow all essential shops, including kiranas, general trade shops, supermarkets, to operate till 9 pm everyday as restrictions imposed by several state governments have resulted in hindered supply chains and skewed buying patterns.

RAI has submitted representations to various state and local authorities putting forth recommendations to get businesses and life of consumers on the track to recovery, including mandatorily allowing essential shops to operate every day of the week until 9 pm to cater to the daily needs of the customers. It also sought ensuring uniform and regular opening of all categories of retail for full working hours while following stringent hygiene practices and adhering to social distancing norms.

Supporting his view, Sandeep Kataria, CEO, Bata India said longer operational hours will support recovery for retailers besides helping them to adhere to social distancing norms. Similarly, Himanshu Charkrawarti, CEO, Arvind Lifestyle Brands says, brands can ensure customer convenience and prevent crowding best by operating at regular retail timings. Kumar Rajagopalan, CEO, RAI urged policymakers to ensure economic revival across the country.

Allow retailers to operate till 9 pm, urges RAI

COVID-19 lockdown fuels demand for online fitness products in India

With most fitness freaks staying inside due to the COVID-19 pandemic, the demand for online shopping of activewear and fitness gear has surged in India, says NorthAlp, an online shopping portal. The Sweden-based shopping portal, that focuses on sports activewear and fitness gear segments, has recorded 300 per cent increase in sales. It is witnessing an increasing demand for fitness wear, shoes and fitness products in the country.

During the lockdown, the company revealed that 40 per cent of the sales were for activewear, 30 per cent for a yoga mat, 13 per cent for footwear and rest for fitness accessories. The growing popularity of virtual fitness workouts with professional instructors and coaches are another reason behind the increase in online sales of fitness products and brands, such as apparel and shoes. Online sales of Fitmoda -- women activewear portal have grown by almost 100 per cent

Out of total sales of activewear, 50 per cent was for tops, 30 per cent for bottoms like leggings, shorts and skirts followed by 20 per cent sale of jumpsuits.

COVID-19 lockdown fuels demand for online fitness products in India

Retail sales fall by 67% during June 15-30: RAI survey

The business of Indian retailers declined by 67 per cent during June 15-30 compared to the corresponding period last year, according to a survey by Retailers Association of India (RAI).

In its latest business survey conducted on more than 100 big and small retailers, RAI said there has been no significant growth in business for retailers even during the second half of June.

During this time, malls witnessed 77 per cent degrowth (year-on-year) on account of not being allowed to open uniformly across the country, high street retail showed degrowth of 62 per cent in business despite being allowed to open across India.

Large size retailers (sales of over Rs 300 crore) witnessed a degrowth of 59 per cent and small retailers ( less than Rs 300 crore sales) witnessed a decline of 69 per cent.

Region wise, West with a 74 per cent drop and North with 71 per cent decline continued to suffer the most, while East and South witnessed 62 per cent fall in sales each.

Retail sales fall by 67% during June 15-30: RAI survey

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 who offers customized services across all her product lines including bridal, prêt, fusion, menswear, kids wear and accessories.

Increasing customization of bridal wear

In India, the term customized or bespoke fashion has become synonymous with bridal wear. Hence, designer Ritu Kumar recently reintroduced her bespoke bridal services. Steeped in India’s rich textile history, the brand’s designs will henceforth be customized according to customers’ needs. Designer Anavila Misra, best known for her collectible saris, aims to offer less but well-crafted designs. Singhal too will allow her clients to mix and match clothes by providing them with an access to her past collections. Technologies like 3D renditions, archiving, virtual trials and e-commerce will help these designers offer customers a seamless shopping experience.

Offering customized luxury

The post pandemic world will also accelerate adoption of customization by homegrown prêt labels like resort and lounge wear brand Verandah. The zero-waste brand is known for making each of its order from scratch. Over the last eight years, the brand has customized multiple people for several of its clients. Anjali Patel Mehta, Founder and Creative Director, believes henceforth there will be more demand for special, well-cut and transitional pieces that last long. In order to cut waste, shoppers will invest more in the creation of their outfits. Customization will also help brands tackle the problem of overproduction. They will be able to replace the old theory of ‘See now, buy now’ with wait and wear’. With customization, consumers will also able to build a collection that they have an emotional connect with and savor every minute of the experience.

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

Steady online retail revive demand as offline retailers gear up to boost sales

The nationwide lockdown being implemented to curb COVID-19 spread has hit Indian fashion and apparel sector hard with sales recovering just 35 per cent that of January levels. Latest Redseer Consulting data reveals, fashion sales in January stood at $7 billion, or $85 billion annualized with the steepest dip reported in April when sales reached only 10 per cent of January levels. Sales by offline retailers, including those from organized brick-and-mortar stores, fell around 4 per cent to 88 per cent by mid-June. Online retailers also failed to match pre-COVID-19 levels even though their sales increased 11 per cent over the last six months.

Demand to revive by festive season

The fashion industry can only hope to bounce back around the upcoming festive season, says the chief executive of a top fashion brand. According to him, the industry’s reliance on a few online channels is not expected to bring the desired results. Cut back on spending on non-essential items may also lead to weaker sales, say analysts. More than 50 per cent consumers plan to cut down on their discretionary purchases, including fashion, in the next six months, opines Mrigank Gutgutia, Director, Redseer Consulting and Research.

Though brands are taking several measures to woo consumers, these have failed to lift demand says Harminder Sahni, Founder and Managing Director, Wazir Advisors. According to him, sales are unlikely to recover for the entire year as COVID-19 cases are rising every day.

Safety protocol for apparel retailers

Retailers and brands are seeking a standardized safety protocol for apparel to boost sales, says Arvind Mediratta, Chairperson, Retail and Internal Trade Committee, FICCI. This protocol will help retailers by certifying their apparels as safe for consumers.

These retailers are also employing disabling features like cash on delivery which are helping them to control returns and exchanges by 50 per cent. However, they need to build virtual trial rooms to help customers check how the cloth looks on them, views Rameswar Misra, Cofounder, Turms.

Post pandemic, fashion and apparel has become one of the fastest selling categories online. Held last month, Myntra’s flagship sale event recorded about 3.5 million customers with more than 10 million items being sold in just four days. Even though customers are currently stocking essentials, they will get back to shopping apparels, once they get back to work, believes Abhishek Ganguly, Managing Director, Puma India. And this will lead to a growth in offline sales as was evident from the recent pick up in traffic at the newly reopened stores.

Steady online retail revive demand as offline retailers gear up to boost sales

Government introduces new e-commerce policy draft

The Indian government has introduced a new ecommerce policy draft which plans to appoint an e-commerce regulator to make the industry more competitive which could directly impact Amazon and Google’s India operations. The policy draft was prepared by the ministry of commerce’s department for promotion of industry & internal trade.

The proposed rules also mandate government access to online companies’ source codes and algorithms, which would help ensure against digitally induced biases by competitors. The draft would ensure the use of artificial intelligence by these companies.

According to the draft, the government, in consultation with relevant stakeholders, will define the categories of e-commerce that would require mirroring or localization. E-commerce companies will have to make the required available to the government within 72 hours, which could include information related to national security, taxation and law and order.

The draft policy also mandates e-commerce platforms to provide consumers the details of sellers, including phone numbers, customer complaint contacts, email and addresses. For imported goods, the country of origin and value of work done in India need to be clearly specified.

Also, foreign e-commerce companies providing live streaming services that use payment tokens need to be regulated to ensure that users route such transactions through formal and regulated payment channels.

Government introduces new e-commerce policy draft

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