E-commerce firms expect Maharashtra’s new COVID-related restrictions to have minimal impact on their operations.

As per Economic Times, the Maharashtra government ordered delivery and supply chain staff of e-commerce companies to either get vaccinated or carry a negative RT-PCR test report, starting April 10

Hari Menon, Co-founder and CEO, BigBasket, said, the company has reached out to the state authorities to understand if they would be organizing camps for mass testing of their workforce, or if they’d give any special permission to allow vaccination of last-mile delivery agents.

Grofers said it was adhering to all the COVID-19 protocols and guidelines laid down by the government. The retailer is conducting regular testing for all Its frontline team members. Online food ordering companies Swiggy and Zomato, which have a combined workforce of around 55,000 delivery agents in the state, have requested the government to extend the timelines for RT-PCR test for delivery partners.

Swiggy is also urging its delivery partners to get RT-PCR test done and that it will cover the cost. It had announced last week that it will cover the vaccination cost of its 200,000 delivery partners.

However, these companies might rejig their delivery personnel deployment after gauging market demand over the next week, as working hours for restaurants have been restricted.

Desperate times call for desperate measures, the pandemic is forcing Indian retailers to reshape their business operations and become more agile and build capacities. The Economic Times CEO Breakfast presented by Accenture India and emphasized on several such learnings from the pandemic.

Omnichannel to be the way forward

The discussion opened with Anurag Gupta, Accenture emphasizing on the importance of building more agility, resilience and capability into India’s retail businesses. Amit Jain, L’Oréal India highlighted the growing preference for brands with a purpose. He also underlined the significance of additional retail channels such as, kerbside deliveries, social commerce, etc.

Lalit Agarwal, V-Mart Retail explained his company’s efforts to maintain balance sheet and inventory levels during the pandemic. He said, though customers in smaller cities had the money to make purchases during the pandemic, they were reluctant to do so due to their fear of catching the virus. Abhishek Ganguly, Puma India and Southeast Asia, said though Indian retailers were hit the hardest in the first quarter of 2020, they made a successful comeback in the third and fourth quarters.

Saving for the rainy day

Shital Mehta, Lifestyle International warned retailers though other formats like Max had crossed their pre-COVID sales, malls are still not performing at the required levels. Shailesh Chaturvedi, Arvind Fashions therefore urged retailers to focus on casual clothing as wedding wear and formal wear are likely to take some time to pick up.

The discussion ended with Vineet R Ahuja, Accenture India advising retailers to conserve cash and staying healthy. He said, this would give them a competitive advantage and help sustain over time.

As per a CRISIL report, Indian footwear sector could see revenue growth of 23-25 per cent next fiscal, closing in on pre-pandemic topline levels of Rs 70,000 crore. Footwear companies could rakes in sales to pre-pandemic levels by next fiscal. In the current fiscal, sales in the category are expected to contract 21 per cent due to pandemic led-lockdown, and a shift to work from home that hit demand in the first half. The report estimates domestic demand to decline by 19 per cent this fiscal.

Domestic demand, which accounts for 75 per cent of the sector’s revenue, rebounded third quarter onwards with the easing of lockdown curbs and helped by festive spending, CRISIL says.

Revenues returned to over 90 per cent of pre-pandemic levels for footwear manufacturing companies in Q3. They are expected to recover almost fully in the current quarter.

The report, however, flagged sluggish exports as a concern as major export markets such as the US and Europe see fresh lockdowns. It expects the exports to decline by 25 per cent this fiscal.

To be held on July 3 and 4, wedding-themed business-to-customer fair Bride & Groom will bring together 108 clothing, events, beauty, and lifestyle brands at Chanakyapuri in New Delhi. The two-day shopping fair will have 25,000 visitors and showcase products and services from 108 exhibitors. Its 10Times events page informs, the fair will feature a wide range of occasion wear for brides and grooms, as well as guests.

The event will be organized by ITE Group India, and feature noted brands including Anju Modi, Abhishek Dutta, Samaira Jewels, Ozel Designs, and Prem Studio, among others. The event aims to be a one-stop-shop for the late summer and autumn wedding seasons.

The pan-India lockdown and restrictions on social gatherings have badly affected the Indian wedding industry. Shopping fairs and trade shows aims to bring the industry back on its demand by tapping the pent up demand in 2021.

Desperate times call for desperate measures. Fashion brands are trying to survive the ongoing tough times by shifting their business online and incorporating consumer feedback into operations. They are also stepping up their online training facilities for specific retail capabilities, says Akhil Jain, Executive Director, Madame. Creating skilled teams to provide great brand experiences remains their primary focus today, he adds.

Focus on high-end technologies

Companies adopting advanced technologies are succeeding in creating a benchmark in customer interaction. However, brands need to upgrade their commercial and social relationships, said Jain to Financial Express. He also advises agencies to reflect on businesses’ weak points and highlight strategies for improvement through effective consulting.

He believes technology-enabled business trends will stimulate future growth of the industry and advises brands to introduce convenient, accessible and safe shopping options. His brand Madame closely engaged with customers throughout the pandemic which helped boost sales in Tier II and III post lockdown. The brand reached 70 per cent of pre-COVID sales by November and is currently at nearly 100 per cent pre-COVID sales, informs Jain.

Pre-COVID, online shopping just formed 2 per cent of Madame’s sales. But, now this has increased to 10 per cent. Jain expects this to continue and aims to boost the brand’s online experience through investments in high-end technologies.

Madame also launched an online platform to offer customers new ways to explore themselves through fashion. Jain says, daywear, summer essentials have emerged as the new quarantine wardrobe while loungewear and activewear are also saw an uptick in demand.

Sustainability and digitization by 2030

Eco-friendly, Madame’s innovative designs help minimize textile waste. The brand aims to be 100 per cent environmentally friendly and a carbon-negative company by 2030. Last year, it launched an exclusive online shopping website glamly.com to provide personalized shopping experiences. The brand also has a wide distribution network in India with over 700 points of sales.

Jain says, digitalization allows companies to reduce losses by accelerating production of best-sellers. It also helps process a large amount of data both from within a firm and externally. He informs, many manufacturing units obtain individualized customer data to personalize the product design, service and sales process.

Madame maintains its market position by launching innovative and experimental styles. Its operational model enables the brand to tap into potential of its regional consumers, enabling it to achieve double-digit growth year on year, excluding 2020. The brand witnessed significant growth in online sales during the pandemic period of 2020 with a major contribution was from Tier II and III cities like Ludhiana, Chandigarh, Lucknow, Jaipur, Mohali, Noida, Jammu and Shimla. In the next three years, Madame aims to fly higher with three-fold growth through online sales.

Handcrafted jeans made from khadi are latest innovation in the denim industry. As per a report by the Apparel Resources, a 100 per cent swadeshi brand launched in 2016, Desitude offers handcrafted jeans and other premium quality apparel and accessories made from hand-spun and hand-woven khadi. These denims maintain the spirit and purity of khadi not only in their design but also in production processes and tags.

Khadi denims are a proof of consumers’ demand for eco-friendly clothing, says Siddharth Mohan Nair, Founder, Desitude. However, their making involves a lot of handmade processes which hike their prices, he adds.

Lack of stretch, environmental hazards pose challenges

Another problem with khadi denim is the lack of stretch which prevents consumers, especially women, from buying them. Their huge prices are also a big deterrent. Denim is considered to have a substantial impact on the environment. A single pair of jeans requires 20,000 litre of water to make. Around 70 per cent of Asia’s rivers and lakes have been contaminated by the 2.5 billion gallons of wastewater produced by the textile industry. Therefore, it has become necessary for the denim industry to use eco-friendly production processes.

Eco-friendly materials for transparent production

International denim brands are also looking at ethical denim production. They are trying to make production processes as transparent as possible by adapting eco-friendly processes and fabrics. For example, Everlane designs heavier denims that can be snapped back into place after each wear, requiring less washing. These denims are made at a Leadership in Energy and Environmental Design (LEED) certified factory in Vietnam that relies on solar power, recycles 98 per cent of its water and uses reverse osmosis to filter the remaining 2 per cent into clean drinking water.

Launched in 2001, first organic denim brand Kuyichi uses eco-friendly materials including organic cotton to make its denims. This cuts the brand’s carbon emissions by 60 per cent compared to conventional cotton. The Dutch brand is also a member of the Fair Wear Foundation and supports fair working conditions for all workers of its suppliers.

Manufacturer of zero-waste, vegan denims, ELV Denim transforms old discarded denim into modern and sophisticated denim. The brand manufactures all its products in local factories of East London. Through its emphasis on local production, the brand promotes an ethical lifestyle amongst its consumers.

High maintenance lowers demand

Despite these initiatives, Nair expects the future of eco-friendly denims to remain bleak. The pandemic has reduced consumer’s purchasing power, and the ability to experiment with their wardrobes. Eco-friendly denims are difficult to maintain and repair which further lowers their acceptability amongst consumers. However, Nair believes, sooner or later, consumers are sure to switch to environment-friendly clothing.

The pandemic has changed the age old, shabby and worn out image of secondhand fashion and encouraged young Indian fashionistas to embrace pre-worn or used clothes. A report by The Times of India shows, Indian market for secondhand clothes is expected to grow 185 per cent over the next 10 years with many global brands jumping on the secondhand bandwagon. Gucci plans to enter the resale market through its partnership with the The RealReal while denim brand Levi’s launched a buyback program known as Levi’s Secondhand to encourage circular fashion. The economic downturn, brought in by the pandemic, is also boosting demand for secondhand fashion amongst Indians.

Changing trend for seconds

Namrata Iyer, Designer, Illustrator and Founder, The Local Thrift, believes, secondhand fashion has always been in demand in India with Instagram shops and garage sales existing even before 2020. The pandemic has intensified its significance with young consumers increasingly moving towards responsible fashion. She feels, thrift garments are unique in style, and can help reduce the number of discarded garments. The trends in secondhand fashion also change according to seasons. Stores often have their own hot selling items, dictated by market trends. For instance, earlier, corsets and lingerie were most commonly sold. Now, lighter clothing is more in demand.

New launches, social media spurring demand

Asenla Jamir, Founder and Creative Director, Otsü Clothing Co, attributes the growing popularity of secondhand fashion to shutting down of trendy and reasonable fashion shopping sites. Jamir says secondhand clothing are reasonable compared to other big brands. Her brand upcycles Naga textiles and rescued fabrics to create new shirts, skirts, blazer/jackets, pants, and dresses. This helps reduce mass production, social impact, and environmental wastage and helps promote its own individual and unique styles. The brand also re-uses rescued fabrics in its designs.

Actress Evelyn Sharma has also launched a range of upcycled garments called Seams for Dreams. The owner of a fashion charity foundation says lesser incomes, limited access to retail stores and several other restrictions are driving more consumers to secondhand clothing as they reduce their consumption of fast fashion.

Social media has also helped catalyze demand for secondhand clothes in India, adds Iyer. She cites the example of Instagram which dedicates several pages dedicated to designers and homegrown labels dealing in secondhand clothes. Platforms like these also help consumers across the globe stay connected with each other and promote thrifting/circular/secondhand fashion, adds Asenla.

The industry has to restart sooner or later, emphasized designer Payal Singhal at the recently concluded Lakme Fashion Week. For her, fashion weeks are a way to bring in new business to support her staff of 150. She organized a live, in-person show to launch Indian athleisure line called Kismet. The show featured mask-less models to a socially distanced audience seated in their respective cars.

Organized jointly by the Fashion Design Council of India and Rise Worldwide from March 16-21, 2021, Lakme Fashion Week showcased over 30 designers including Anamika Khanna, Ritu Kumar, Shantanu & Nikhil, Suneet Varma, Masaba Gupta, Huemn, Payal Pratap, Ruchika Sachdeva, Gauri & Nainika and Akshat Bansal. The event reemphasized the relevance of fashion weeks as the largest lifestyle property in terms of the quantum of business or investments and sponsorships, says Jaspreet Chandok, Head-Lifestyle Business, Rise Worldwide.

Mirroring current times

One of the highlights was the The Bodice show by designer Ruchika Sachdeva which mirrored the current troubled times with its long dresses and optical pleats. Designer Payal Pratap’s collection featured floral patterns against a dark background that celebrated the positivity in her consumers. Her collection included long skirts and dresses with longer jackets, their shape and silhouette tailored to follow the body contours.

The virtual shows by designers Anamika Khanna and PELLA by Priyanka Ella Lorena Lama celebrated the gloom surrounding current instability. However, they also highlighted the creativity emerging out of it.

Playing with the idea of evanescence, designer Khanna showcased a collection featuring dhoti drapes hemmed in flat metallic embroidery to armour-inspired version in scallop beads. Her tailored coats made with traditional materials and accentuated and a bomber jacket-meets-shrug pair reminded viewers of intricate Kutchi handwork.

Massa Gupta’s collection featured a range of knotted crop tops, cape blouses, dresses, and duets of saree-blouses and track pants-hooded jumpers drizzled over in a combination of signature prints; the holy cow, lipstick bullets, palm, toffee wrappers, etc. The collection was a compilation of old hits rehashed from familiar styles and trimmings.

Payal Singhal’s street-meets-sportswear collection focused on young and unpretentious styles. Made from fabrics recycled from PET bottles, courtesy R-Elan, the collection included dhoti-saris, kurta-jogger sets and ribbed crop top-jogger saris finished in a twist of thread and wool embroidery and the label’s characteristic tassel and pom-pom details.

Brand Heumn designing outwear for quite some time launched a collection of oversized sportswear crafted in homegrown cotton and silk with couture-level 3D embroidery, embossing that had a cool looseness and coarseness to it. T0he rise of work-from-home clothing trend pushed it to create more responsible range, says Pranav Misra.

Healthy growth prospects

A report by the Boston Consulting Group estimates, the Indian fashion industry will be worth Rs 5,781 billion by 2024, despite a 27 per cent drop in size in 2020. The industry is expected to drive many social changes, says Misra, Co-founder and Designer, Huemn. As the industry moves away from its normal mode of functioning, stakeholders need to reset rules to focus on telling stories that help reemphasize the importance of fashion.

Fashion retail markets across the world were under severe stress even before the COVID-19 crisis. A new KPMG report ‘Covid-19: Mitigation strategy for Indian textile and apparel sector’ highlights issues like deep discounting and damp consumer sentiments were already threatening the future prospects of the industry. The onset of the COVID-19 pandemic has plunged the industry further into darkness with production lockdowns, severe supply chain disruptions and market closures becoming the order of the day.

As per the report, the pandemic is likely to impact approximately one fifth of global apparel trade, creating supply chain disruptions across the world. The Italian market is expected to be the worst hit amongst European economies with market revival taking at least 12-15 months despite a strong economic boost from the government. The Spanish market is also expected to bear the brunt of the pandemic for the next 12-15 months while the UK market will face long-term ramifications though a good economic stimulus from the government will help alleviate some of the pain.

Worth nearly $38.9 billion, the largest European market, Germany is expected to revive in the next 9-12 months. Similar recovery is expected for the Japan, Canada and France markets while Belgium recovery is likely to delayed due to the high penetration of COVID-19 and limited financial stimulus.

Varied impact across segments

The report indicates impact on Indian market is likely to vary across sectors. The cotton fiber market is likely to be seriously impacted due to a contraction in the global market and order cancellations. Low downstream demand will restrict imports to specialized cotton fibers only and the market may face some liquidity issues resulting in shortage of working capital

MMF Fibers: With limited exports, overall impact on MMF fiber segment is expected to be low. The segment is likely import high-value functional fibers as PTA exports are likely to face supply chain disruptions. This will create a liquidity issues in the segment.

Yarn: With $6.2 billion exports global contraction in fabric manufacturing is drying up the demand for yarn across the world. The segment also faces raw material shortages due to supply chain disruptions. The huge buildup of inventory is also leading to a huge crunch of working capital in the segment.

Fiber processing market: With limited exports, overall impact on the fiber processing segment is expected to be low. However, raw materials shortages will impact operations in the segment.

Fabrics: Demand for fabrics in the domestic market is likely to decline due to a decrease in global apparel market. The segment depends on imports for its requirement of specialized and functional fabrics. Decentralized manufacturing will lead to a severe capital crunch with raw material availability also likely to be a challenge in the medium term.

Technical Textiles: The economic slowdown is likely to shrink Indian exports of technical textiles. The domestic market will be severely hit due to its significant dependence on raw material imports for value added products

Focus on core strengths

Considering this significant impact of COVID-19 on its textile value chain, Indian manufacturers need a fresh approach towards their business that focuses on the core strengths of the Indian industry. Manufacturers need to explore new markets opened by the COVID-19 pandemic in PPE sector. They need to emphasize on manufacturing of masks, PPEs and other meditech products that would enable them to tap burgeoning global market.

Indian textiles players are already at an advantage with abundance of natural raw materials, a young workforce and end-to-end value chain capabilities. However, they need to develop their core competencies in high-value raw materials and aim to capture a major share in the global trade of high-value product categories.