Brands should offer promotional scheme for ‘off season’ stock
Nandan Denim, part of leading conglomerate Chiripal Group, commenced its operations in 1994 with textile trading business and forayed into textile manufacturing in 2004. The company currently engages in manufacturing of denims, cotton fabrics and khakis. In an interview with Fibre2Fashion, Subrata Ghosh, Vice President, Nandan Denim Ltd, discusses about the consequences of the COVID-19 situation on textile manufacturers and how brands and retailers should come together to help each other.
Amidst COVID-19, factories have reported cancellation of orders from brands/retailers. How do you view the current situation?
This is a serious issue with multiplying consequences. There is difference between delay and cancelation. Delay in lifting is a sensible suggestion in the present situation and everybody understands that. Brands and retailers have specific designs, if cancelled it cannot be used by others. Cancellations also mean non-payment by the brands for already incurred cost. This will lead to complete imbalance of working capitals, resulting in non-payment of wages and salaries.
Factories will in turn hold the payments of the fabrics and same financial issue will come to mills also. This is a chain reaction which can be already seen.
What are your suggestions/inputs to fashion brands/retailers on tackling this issue?
Brands carry some trust value and that is why they are known as ‘Brands’. But this kind of behaviour will create some negative image about them. Business loss for brands will have negative results in overall industry also.?
Hope, like many, all brands will re-think their decision and will behave in a sensible way for the benefit of all.
Brands will need to re-adjust their seasonal collection also, otherwise delay lifting means goods will remain in the ware houses for one year. According to me, all retail customers will support in this time if brands and retailers come out with some promotional scheme for these ‘off season’ stock.
What steps are you taking to tackle order cancellations?
In apparel manufacturing supply chain, order cancellations will have negative effect for factories, fabric mills, spinning mills, chemical suppliers etc. Explaining and convincing brands, is the first step. Next alternate will be to find alternate customers for ready stock, re-adjustment for other styles etc. Last and forcible decision will be to think future business relationship with those brands. Nobody will mention this but it will be in the back of the mind. (PC)
Published on: 22/04/2020
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
Fibre2Fashion has a diverse global readership, and delivers unique, authoritative and relevant content. Drawing on the expertise and credibility that we have built over the years and contextualising them with our in-depth research studies, we produce authentic news, articles, reports, interviews and interactive explainers through the F2F Magazine and compendiums, among others, which help readers stay abreast with the industry trends.