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Friday, March 29, 2024

Indian fashion on front during COVID-19

From manufacturing supply chains to fashion weeks and trade shows, the repercussions of the novel coronavirus pandemic are shaking up the fashion industry as we know it. Retail and manufacturing industries worldwide are amongst the worst hit with companies going bankrupt and shutting stores almost overnight. In such a scenario, fashion is the last thing on people’s mind right now.

Indian fashion designers, “the trickledown effect of consumers not spending has affected everyone, from retailers to weavers. Most young brands with not enough savings will probably shut down, which will result in a major loss of talent,” Shweta Kapur, Creative Director of Indian label 431-88, told Apparel Resources.

With factories and supply chains shutting down due to the nationwide lockdown, all work has come to a standstill. Orders in hand have been kept on hold, resulting in rising concerns of deadstock. Commenting on the same, Amit Vijaya, Co-Creative Director of Indian handloom label Amrich, said “The lockdown, which in a way is necessary to prevent further spread, also prevents any processes for work to function. Manufactured stocks are just lying and the fear is that the season would pass by without being able to get it to customers.”

The situation is grave in Amrich’s case since the label works with handloom textiles and the abrupt halt of production and sampling means that a lot of their artisans are unable to work for their livelihood. The situation poses still a greater threat to designers whose business models focus on trend-based clothing. Given the short lifespan of such fashion, even putting old stock on sale would backfire since it would lack relevance and interest. “Fashion works on a seasonal, pre-make, risky investment system and the ongoing unprecedented times do not denote its end date to plan the future, which is why the set business plans, investments on stock, events and business strategies have shaken or have gone on standby. We would be seeing a lot of deadstock coming to the forefront soon,” said Akshat Bansal, Founder of Bloni.

With businesses suffering worldwide and companies initiating layoffs and pay-cuts, the way we perceive fashion is fast changing. Consumption, consumer spending and intent are all key driving factors in the limelight now with brands and designers struggling to identify what the next step in this uncharted territory should be.

Keeping the situation in mind, it is inevitable that fashion labels and brands will need to implement mark downs during this period of uncertainty, in order to encourage purchases and keep afloat.

According to a report released by McKinsey, as countries move through the contagion curve, there are pockets of increasing spending even as consumers universally pull back on discretionary spending. Online buying has spiked up almost everywhere around the world, but that shift has not come close to offsetting the overall reduction in spending.

In the case of labels such as 431-88 and Amrich, online retailing has been strong during this period, but due to the lockdown, no dispatches have been made yet. Everything will be processed once the lockdown is lifted and the situation normalises a bit and our customers are aware of that,” Shweta explained.

But apart from a decline in sales, graver challenges are being faced by designers and brands that not only have the issue of piling up stocks but also unutilised workforce. Though majority of designer labels have pledged to pay their skilled workers in full and support them during this period, it is a matter of time when the blaring question of how long this can last comes to the fore. “The major challenge for us is the planning of our production cycles in terms of textiles. Working with handlooms means we have to begin work on sampling, etc. at least 6 months in advance. Currently, the situation doesn’t allow us to plan in advance, as no one knows when and how the time will progress.”

For Shweta, whose strategic business acumen has allowed them to pay salaries in full up till now, the concern is the same. “The major challenge is how to handle the fixed overhead costs. We are lucky that we can take a hit for a couple of months, but it will be tough beyond that. Currently, our main concern is the health and safety of our team members. COVID-19 has taken a huge toll on our projections for the year, so we are now figuring out new strategies to catch up,” Shweta stated.

Fashion and creation are not going to stop. For Akshat, Bloni’s range plan may have fewer number of pieces, focusing on more regional-based clothing, but most importantly, keeping a very strong brand identity in sync, where sustainability, comfort and functionality all collide, will be the brand’s priority.

“Virtual reality would be the new ‘normal’, spreading to encompass fashion, beauty and events where visiting offline bricks-and-mortar stores will likely become more of an experience. A belief in the thought process that ‘more is more and is harmful’ may finally embed in our DNA. Sustainability and containment will command our lives like never before.” – Akshat Bansal, Founder, Bloni

Validating the same, Shweta cited, “We’ve taken this time to also figure where we are currently lacking, and cutting off all unnecessary expenditure. Luckily, 431-88 is not a seasonal brand and we only work with separates, so it is easy for us to jump the traditional calendar and offer products that can be wardrobe essentials for years. There will definitely be a huge shift in consumer behaviour in the coming months, and we are currently studying and analysing that,” further adding, “Indians are emotional spenders. With everything going on around us and the looming recession, people who can spend would also be a little wary about shopping. When the lockdown is lifted, people would still be hesitant to step out freely for at least a while. Summer in the country is usually slow for fashion and it only picks up during the August-September period with Diwali and the wedding season coming in, but I see more people wearing things that they already own instead of buying new things.”

The need of the hour is Government support, especially for digital-first designers and brands that face an existential threat in the light of coronavirus. Suggestions such as freezing rents, funding, interest relaxation, etc. seem to be the most in demand among the designer lot.

During this time of crisis, the core bodies of fashion in India – The Fashion Design Council of India (FDCI) and Lakmé Fashion Week – have launched a COVID-19 Support Fund to provide financial assistance to small businesses and young designers in need. Commenting on the same, Amit said “Through organisations such as the FDCI, the Indian Government has been made aware of the crises that are to fall upon our industry. The Government has said they would help, but it remains to be seen what methods they would apply to help. It is extremely important that concrete plans are put down, as it is not just the designers that are affected but also the entire chain of people who keep the machinery running.”

But still, when we separate the Indian design industry from the textile industry as a whole, a lot of issues still remain to be understood. A relatively new and niche sector with different scales, categories, catering markets, market places, hidden facts, highly skilled staff, and employees, the Indian fashion space is still evolving.

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