As the COVID-19 pandemic continues to rapidly spread across the globe various businesses are facing the repercussions of the new normal. One such major sector that has been hit hard by the coronavirus pandemic is the Indian garment manufacturing sector. So, what’s at stake for the Indian textiles and apparel (T&A) industry, and what is the impact of coronavirus on Indian garment manufacturers? Here’s what they can do to rise as winners during these trying times.
Indian garment manufacturing industry and the Indian economy:
The Indian retail industry is estimated to be worth around $800 billion and the Indian Textiles and Apparels (T&A) industry accounts for approximately 4% of the global T&A market. This is one of the most important sectors that has contributed to the growth of the Indian economy in terms of output, foreign exchange earnings, and employment. In fact, the Indian textiles and garment industry contributes approximately 2% of the nation’s GDP.
The impact of Coronavirus pandemic
As a result of coronavirus taking over the world, the business operations of the Indian garment manufacturing industries have come to a standstill. The T&A industry’s main source of income was in exports and the pandemic has affected the majority of India’s export market. Indian garment manufacturers are unable to export their products to major markets such as the US and EU that constitute approximately 60% of the total garment exports from India in value terms. Also, with the consumer spending and consumption of non-essentials reduced in the foreign countries due to the pandemic, it has led to order cancelations and deferral of order causing the inventory to build up.
Additionally, domestic consumption is also affected due to the closure of the majority of malls and retail showrooms in India, the situation is taking a turn for the worse and the garment manufacturing industry is facing its worst-ever crisis. New store openings have stopped and even domestic stores are facing an inventory build-up. This may in turn lead to a fall in prices and reduced profits even after when the situation comes to normal. Thus, the impact of coronavirus on the Indian garment manufacturers is severe, and not taking any action may lead to heavy losses.
Branding and E-Commerce- The saviour of Indian garment manufacturers:
While others are dwelling on the losses caused due to the pandemic, smart garment manufacturers are already a step ahead and are adjusting themselves to serve the novel customer needs during this crisis. With consumers slowly shifting from the ‘survival mode’ to adjusting to the new reality of the post-COVID-19 world, only the businesses that make use of the emerging opportunities will survive.
One such area that is gaining traction is the eCommerce sector. This pandemic has only accelerated the long-awaited shift towards online shopping. With only two major players- Amazon and Flipkart in the eCommerce field, many Indian garment manufacturers are now exploring the Indian market and concentrating on online sales. As more and more Indian populations are willing to shop online, many independent local brands have created their own niche spaces in eCommerce and are working at a rapid phase to strengthen their presence.
E-Commerce in India witnessed a 17% growth post-COVID-19 and brands establishing their own website have seen a whopping 65% growth in this pandemic in India. As an Indian garment manufacturer who mainly focused on exports, you don’t have to worry about sales and profits anymore. You can start your own clothing brand and see huge profits in this pandemic. All you need is an eCommerce store coupled with the right brand strategy and digital tools to make use of this emerging opportunity.
This is where Brandshark comes in. We help you create your own apparel brand and make your digital transformation journey smooth. With the help of relevant technologies, we help you set up your online store and empower you with our effective branding strategies that allow you to compete even with large and capital-rich business.