ITV

Tag: apparel industry.

  • Aim to reach 70- 80% revenue in July: Cantabil’s Shivendra Nigam

    Aim to reach 70- 80% revenue in July: Cantabil’s Shivendra Nigam

    NEW DELHI: The apparel industry was one of the hard-hit ones as e-commerce halted and people were locked at home and in no need for new clothes. Now, brands are aggressively pushing to get back consumers to stores and re-build consumer sentiments. Indiantelevision.com had a fireside chat with Cantabil Retail India Ltd chief financial officer Shivendra Nigam. The session was moderated by Indiantelevision.com senior reporter Dolly Mahayan.

    Fashion apparel brand Cantabil has a network of around 260+ exclusive retail outlets in 16 states across the country. With a manufacturing plant in Haryana, it produces 10 lakh pieces of garments per annum.

    Shivendra said, “Lockdown came at a time when all our merchandise of the summer season was on the shelf at all the stores. We did not face any distribution channel. When the lockdown was imposed all the products were hit at the stores for the sale. As per our plans, we always keep 90-120 days ahead of inventory.”

    On the financial front, he said, “Comparing this year Q1 revenue to last year Q1 revenue will be unjustified. For Cantabil, there was no revenue in the month of April, but in May, revenue started coming as unlock 1.0 began. Even in June, we are slightly above the expectations, not even 100 per cent.”

    He shared that the inventory cycle for from production to reaching the shelf is done in five to six months. The company has started production for the winter season now.

    As public gatherings and parties will not be taking place in the near future, Nigam shared that Cantabil has seen a category shift. “Consumers are more interested in buying casual wear as compare to formal clothes. The revenue has been generated in a very good amount for the company. We have clocked 50 per cent revenue from the full season and our aim is to reach at least around 70-80 per cent revenue in July.”

    The company last year announced that it is adding 100 new outlets. Nigam said, “We are not going to open many stores since all our plans have been extended for one more year. Second half will see mainly expansion on the franchise side rather than company model. Things are likely to get back on track by next year.”

    Nigam added, “We are not only focusing on tier I expansion but tier II and tier III markets as well. 60 per cent of sales are coming from this market, and we are hopeful it will contribute in the same manner. But, there are chances tier I will shift for one more quarter in terms of getting the sales back.”

    Since its inception, Cantabil’s USP is men’s wear, but gradually women’s category is contributing well in the overall business revenue and it recently launched kids’ section too. “We are trying to become a complete family wear brand. Though the formal share is always very high and 60 per cent revenue comes from there," revealed Nigam.

    It recently announced its entry in the e-commerce space as well. Nigam said that the company is hoping to get 10-15 per cent revenue coming from this channel by next year.

    While the company has been known to provide deep discounts, it is attempting to keep that just for the festive season now. Nigam said, “40-45 per cent discounts for the festive season is for every year, but what’s important is to maintain a balance between the online and offline stores in terms of discounts. We can’t deplete by giving more discount online and damaging our own physical retail stores. Striking a balance is very important. There are no changes in our business plans, just a few things have been extended.” He also added that diwali is going to be a big celebration not only for businesses but for the economy as well.

    In the concluding remark, Nigam disclosed that the company will soon rope in a new face for the brand. It was supposed to be done this year but the pandemic has pushed that further.

  • Retail industry hiccups and bounce back strategies for Q3

    Retail industry hiccups and bounce back strategies for Q3

    NEW DELHI: India’s retail industry has been badly hit due to Covid2019. The last three months have resulted in no revenue for a majority of fashion brands. From manufacturing supply chains to shut down of stores, the pandemic has shaken up the fashion industry.

    Though Unlock 1.0 announced the re-opening of malls there are no footfalls in shops. Retail brands across the segment have seen new changes in the last few days, owing to the pandemic. 

    Indiantelevision.com had a virtual conference with top leaders on the future of shopping. The panel members were Viviana Mall chief executive officer Manoj K Agarwal, Liva assistant vice president & digital head Rishi Sharma and Spykar Lifestyle chief executive officer Sanjay Vakharia. The session was moderated by Indiantelevision.com senior reporter Dolly Mahayan.

    Vakharia shared, “Our business has been quite impacted because it’s not part of essentials, there is a sea change which we have seen be it in terms of marketing, communication and we are adapting to the new changes, and keeping close tabs on consumers, and trying new mediums to reach out to people.”

    Speaking about the opening of malls, and how its rebuilding confidence among people, Agarwal said, “Unlock1.0 doesn’t have the opening of malls in Mumbai, but everyone will follow SOPs by Shopping Centre Association of India to be implemented by all malls which have been opened, and a detailed SOP has been made which will be strictly implemented."

    “We need to create an environment of comfort and no fear in the customer's mind to visit malls and shop. All malls have come up with videos that gives all necessary information on how they can move around in malls,” he added.

    Sharma also agreed with the other panellists and explained, "In India, the mall is a destination. We have not made a buying pattern. Retail in India is pretty new, brands are young. They are ready to adapt and change themselves. People use e-commerce to create their wish list and when they want to buy a product they will rush to a store. Covid2019 has taught consumers about adaptability and has moved digital.”

    Vakharia shared that the brand will follow its protocol to ensure the safety of consumers, “We are quarantining the garment for 24 hours before letting a customer try it. We are ensuring social distancing and regulating traffic. Consumers are also following all the protocols. There are many checkpoints in the mall for consumers' safety.”

    He also added, “Though online is the need of the hour but pleasure of shopping can’t be felt online. We will see a change where consumers will buy essential stuff online, but for other kind of products people would prefer location shopping.”

    Talking about what kind of changes the brand has seen in the pandemic crisis, Rishi shared, “Sustainability and eco-friendly will be the next big thing in the fashion world. We need to add a layer of care and technology to our fabric and give added protection to consumers.”

    Agarwal said that initially there may be 30 per cent footfall in some malls. "Internal dwell time has been reduced by customers. People are coming for focused shopping. Tier 2 cities are faring better than metros and tier 1 cities on the mall front.  In Q3, I think we are expecting to do good business because the fear of the virus will subside.”

    Vakharia said, “The situation is unprecedented and it looks grim but we are hoping that Q3 will bring little hope as a lot of festivals are around the corner. We are not wanting to get on the end of season sales because the supply chain is distributed, it’s difficult to get new merchandise. We will get interesting products by Diwali.”

    The panelists also shared that in the festive season, they would prefer to advertise more on the digital medium.

    "Brands will be investing heavily on social media platforms to gauge consumers as far as advertising is concerned. We are not sure how print media will work. We will not cut anything on our marketing spends, it’s only the medium and channel which will see a difference. I don’t think so we can afford anything on the marketing and communication budget to be slashed,” Agarwal explained.

    Rishi echoed a similar perspective, “ATL and BTL will take a hit, digital will become big and there will be a lot of new interventions in the space. A very small part of advertising budget may go higher, we could see social-commerce to be the next big thing in India.”