With zero revenues due to the lockdown, fashion retailers on Friday asked the government to devise a mechanism to allow companies to get some cash flows stating that they are headed for a "very challenging time" while also seeking support in co-sharing of workers wages, waiver of rentals and GST reduction.
Heads of Tommy Hilfiger Apparels, Calvin Klein India & Arrow; Bestseller Retail India that sells brands like Jack & Jones, Junarose, and Mamalicious; Vedant Fashions which retails under Manyavar brand and Ritika Pvt Ltd which sells designer Ritu Kumar label, felt that it would take up to 15 months for normalcy to return to the sector after the lockdown.
The companies also said they have decided against job cuts during the period of lockdown and instead are focussing on upskilling their employees to ensure that they "protect the livelihoods" of their staff as long as they can.
"Cash flows are really challenged, there is no revenue. Unlike Europe and other parts of the world where online was allowed and some operational revenue was coming in, we are not seeing any revenue coming in as even e-commerce is not allowed," Bestseller Retail India Country Head Vineet Gautam said.
Speaking at a webinar on 'Impact of COVID-19 on Fashion Business' he said: "The government needs to work on some mechanism to allow companies to get some cash flows in, otherwise we are heading towards a very challenging time in business, where there is no cash coming in but there is continuous cash outflow in the business. Yes, we have responsibility to our people and we are ensuring that in the best way we can."
On job cuts, Gautam said Bestseller Retail India is "keeping everyone currently on rolls now. We have not let go of a single person. I think our first responsibility is to protect jobs till the time we can manage to. That's what we are trying to do so that the least impact comes to our people."
On how soon the industry can come back to normal, Ritika Pvt Ltd Managing Director Amrish Kuamr said: "Once we do start up there will be a gradual start up, it will take time for normalcy to return."
Giving a more specific timeline, Gautam said: "As the lockdown opens up we don't foresee demand coming up immediately. I foresee 9-12 months for normalcy to return. That's how we are trying to see."