With over 20,000 apparel retail stores, including the likes of Shoppers Stop, Westside, and Raymond, among others remaining shut on Monday, the industry is set to visit the Ministry of Finance office tomorrow post the one-day “successful” strike.
In a protest initiated by the Clothing Manufacturers Association of India (CMAI), apparel retailers across the country are seeking a rollback on the proposed 10 per cent excise duty on branded apparels. The countrywide strike by retailers on Monday preceded a similar strike observed by garment manufacturers led by CMAI on Friday.
At the same time, retailers do fear the matter may not receive an immediate attention from the government in the wake of Dravida Munnetra Kazhagam’s (DMK’s) decision to quit the United Progressive Alliance (UPA) government. “The strike has been successful, and all our 770 members observed it with over 20,000 stores remaining closed across the country. We are hoping for a positive action from the government. However, the DMK issue seems to be untimely and may just dilute the urgency of the matter,” said Kumar Rajgopalan, CEO, Retail Association of India.
Retailers, such as SKNL and Raymond, saw almost all of their 400 and 500 stores being closed, respectively. “It was an all-round participation from small and big retailers alike. However, this one day strike may have cost the small retailers more than the big ones, since the latter have ways to offset the loss,” said Ashesh Amin, director – retail and apparels at SKNL.
The industry has already been reeling under a price rise in apparels, even as prices of raw materials such as yarn and fabric rise by over 50 per cent. “Apparels have already seen a price rise recently. The strike is also a move to create awareness among consumers that the excise duty proposal is untimely and may only worsen apparel prices if not rolled back,” said Rajgopalan.