Fashion industry in disarray

With the COVID-19 scare keeping people indoors, and crossborder supplies of goods and materials grinding to a halt, the fashion industry joins a host of other businesses in limbo

The spring of 2020 will be remembered as one of the darkest seasons in fashion history, as no one foresaw the monstrous COVID-19 pandemic consuming global economies in the blink of an eye.

Describing the current situation as “disastrous,” India’s senior couturier Ritu Kumar says, “With the Coronavirus outbreak, the global fashion industry has come to a halt. This has never happened before, and it will affect the coming seasons. My biggest fear is that the demand for new designs will go down or may disappear for some time.”

Rina Dhaka, another senior designer, says the global fashion industry is on “indefinite hold” and will remain so as long as the Coronavirus isn’t contained. Not only has it impacted individual brands, but the ripple effect is also affecting retail giants, she says. “I had completed 60 percent of my collection for Fashion Week and IIFA, but both major shows have been cancelled,” she laments. To make matters worse, major export orders from Europe, Middle-East and USA are also now on hold because airlines aren’t operating across borders, Rina says, adding, “Our designs, collections, and workforce are in limbo, and there’s nothing we can do but wait and watch till the conditions improve.”

According to industry experts, the first two quarters of 2020 will see a sharp decline in sales in all segments, and it is predicted that the Fall/Winter 2020 collection will not reach the market this year.

With shows and exhibitions being cancelled, the designers’ annual calendars are in complete chaos. Designer Charu Parashar was gearing for the India Fashion Week in March followed by South Asian Fashion Week and trunk shows in the USA and Vancouver, but these have been postponed indefinitely. “With the news of COVID19 outbreak, people are not inclined to go out, shop, or indulge in retail therapy. Production and sales are at an all-time low. If further restrictions are imposed by the authorities, our production will be hit, as workers won’t be able to reach work,” she rues. But she also avers that “This is the time to rise above profits and losses and take steps for the wellbeing of the community, as our future depends on it.” The fashion business is largely dependent on style cycles and seasons,

Rina Dhaka and with unprecedented cancellations and delays in supply due to the pandemic, designers are incurring losses at each step. The industry depends on buyers for bookings, and at this time, everyone is at a massive disadvantage, as the organizers don’t know when the runway shows will get back into rhythm this season, says designer Nidhi Yasha. “Retail is bound to be hit, as international orders are being cancelled due to sealed borders and the major buyers from Italy, France and Dubai can’t operate,” she points out.

Fashion events and shows have been cancelled for months, and business, both online and

With the Coronavirus outbreak, the global fashion industry has come to a halt. This has never happened before, and it will affect the coming seasons. My biggest fear is that the demand for new designs will go down or may disappear for some time

— RITU KUMAR

offline, has dropped sharply. Production has been severely hit by the closure of manufacturing units, causing an inevitable delay in raw material availability, in turn affecting the fashion timeline from design to delivery. Designer Adarsh Makharia explains, “Luxury fashion is highly dependent on the consumer, and consumer confidence now is the lowest it has been in decades.” Even so, he stresses that “Our staff and artisans are our biggest assets, so to keep them safe is the biggest challenge for us. In such challenging times, it is in our best interest to adapt and do the needful to prevent any escalation of the health crisis.”

On account of the almost 100 percent lockdown in public places, consumer demand and footfalls to stores has reduced sharply, says Manjula Tiwari, CEO, Future Style Lab. “From a business standpoint, we

I had completed 60 percent of my collection for Fashion Week and IIFA, but both major shows have been cancelled,” says designer Rina Dhaka. To make matters worse, major export orders from Europe, the Middle-East and the USA are also now on hold because airlines aren’t operating across borders.