Analysis Of the Pandemic situation
- It would take 9–12 months for a semblance of normalcy to return, during which businesses will do well to look at a broader supply chain backbone.
- There will be structural changes within the industry, on both the cost side and the demand side, and that there will also be some movement towards online business.
- Post-lockdown period service to consumers will be the primary thing.
- There will be a roll-on of inventory from one season into the next, at least until Diwali.
- The Indian climate allows for spring-summer wear to be used until winter sets in from July to September.
- It would also be a bad strategy if brands were to offer heavy discounts to get rid of the inventory; doing so, they will spoil not only the brand but also the market.
- That most of the businesses that drove India’s GDP currently lie in the COVID-19 Red Zones.
- One of the ways in which the government could help the industry was by extending credit periods.
- To boost consumer demand, the government could provide relief on GST, which could then be passed on to consumers. Consumers are likely to become more price-conscious after the pandemic.
- New norms will emerge, and there will be a renewed respect for capital.
- Companies will look to conserve cash, and Diwali could be a time for a revival — for businesses and the spirits of consumers.
- A lot more people than before would now move online.
- The ‘hyperlocal’ phenomenon would gain ground, wherein brands would service people from the nearest store.
- Brands who are dealing with essential items like Swiggy and dominos; could expand the service to non-essential items too.