COVID-19 HOW FASHION RETAILERS CAN RESPOND TO THE LOCKDOWN

With manufacturing coming to a standstill, not only fashion retailers but also ancillary businesses – like those supplying buttons, trimming etc., as well as the large number of workers employed in this sector are feeling the heat of the lockdown…

- Barkha Bhatnagar Das

The COVID-19 crisis is proving to be a test for businesses with the government announcing a complete nationwide lockdown. While it is hard to predict what the ultimate economic impact of this crisis will be, retail businesses will have to safeguard themselves on three key parameters:

• disrupted supply chain

• delayed or unfulfilled customer orders

• safeguarding internal stakeholders

On the supply side, with manufacturing coming to a standstill, not only fashion retailers but also ancillary businesses – like those supplying buttons, trimming etc., as well as the large number of workers employed in this sector are feeling the heat of the lockdown.

Manufacturing units are struggling with unprocessed orders and this is bound to impact future deliveries. Most often, orders are dispatched through surface or sea which means that it may take months before they are fulfilled, and the real impact of this delay be ascertained.

Securing Employees

The financial fallout of this crisis will also have a far-reaching impact on livelihoods of daily wage earners who are employed in large numbers by the apparel industry. Often workers are paid on a per-piece basis and with factories shut, these workers are rendered jobless with no source of income to make ends meet. In tough times like these, it is imperative for all business owners to be compassionate and empathetic towards their staff and employees.