As the festive season approaches and the inoculation drive picks up pace across the nation, players are hopeful that the festive purchasing this year will drive positive development for most retailers, with the possibility of even carrying out even greater sales than the pre-pandemic levels. Though recovery at the moment appears encouraging across categories, retailers continue to sustain cautious optimism due to the possibility of a third wave of the pandemic. TheSpuzz Online spoke with Shivendra Nigam, CFO, Cantabil to know about the retail sector in India and the way forward. Excerpts:
How has the retail space changed due to the pandemic?
The Covid-19 pandemic has changed customer behaviour and purchasing patterns which have automatically impacted the retail sector. People have been cautious though venturing out and on the web purchases have improved. However, this is more driven by a feeling of reluctance and hesitation. Other contributing things such as decreasing customer spending, minimizing disposable revenue, prioritising essentials purchasing, and other folks have had some effect in the retail space. Customer preference has shifted towards indoor attires as work from home culture gains prominence. While the disruptions triggered by the pandemic did outcome in a staggered slowdown through peak occasions, the offline retail space is once more reverberating, which is a positive sign for recovery.
Customers nonetheless majorly favor the tangible practical experience of physical purchasing. Backed by the key vaccination drive and a variety of COVID suitable measures, such as, physical distancing, sanitisation, advertising cashless transactions, e-bills, and so on., there is renewed client self-assurance to catch up on missed purchasing practical experience. Cantabil has been in a position to effectively capitalise upon the altering trends by implementing an agile technique and evolving with the occasions. Consequently, in spite of disruptions in retail space, we have scripted a record sales of July and August registered as highest ever in comparison to corresponding months. Strong small business fundamentals, investing in necessary, impactful physical presence and seamless purchasing practical experience have all contributed to the development.
What have been the crucial learnings?
The pandemic has been a testimony that even amidst crisis the necessary fundamentals connected with consumers do not modify. People nonetheless would favor offline purchasing if offered a secure and safe atmosphere to shop. While client centricity was generally most critical for any style apparel brand, wellness, hygiene and sanitation have come to be necessary elements, pretty much a precondition, for supplying a positive purchasing practical experience. For us, it has been critical to guarantee that we give a fantastic purchasing ecosystem in all the outlets across India. While the pandemic has also inclined consumers on digital space, on the web purchasing space and Omni channel method does need its due focus. With the socioeconomic fabric that India has, offline purchasing will continue being the most critical medium of sales, even although on the web purchasing will continue to develop.
The reality that we have witnessed more than anticipated footfall which has also reflected in our sales figures is a considerable indicator of this trend. While we consolidate our marketplace position by adding more shops and covering more geographies, Cantabil is taking strides in upgrading its digital infrastructure. We have endeavoured to additional strengthen our omni-channel technique, creating our debut in the e-commerce space with Myntra, Amazon, Flipkart, Ajio, Tata cliq and so on. Apart from this, we have also discovered the significance of bringing an in-shop really feel to the entire digital practical experience. Moreover, we are stepping up the use of technologies in order to stay ahead of trends that are bound to run galore when retailers adapt the ‘new normal’.
What are the future plans of Cantabil?
The business maintain-on expanding its retail footprint and opening 5-6 shops each and every month. The Company’s program in the last 3 years to expand in Tier 2/3 cities and beyond along with tier 1 cities has verified a fantastic accomplishment and we will maintain on expanding our verified development story. We are also pretty hopeful to add one more prosperous chapter in our newly entrant E-commerce venture as a contributor in our major line to accomplish our general targets to attain 1K crore of Turnover in next 5 years.
Will you continue to focus on Bharat?
Yes, we will be focusing on expansion in tier II, III and IV markets as they have massive possible. In tier III and tier IV the buying energy of the customer is slightly restricted but our pricing technique for our goods provides the finest presents to our consumers. We are arranging to add our retail footprints in mixture of 70% Company owned outlets as effectively as 30% asset light franchise model.
What are your views on sustainable style?
With the expanding consciousness towards saving our atmosphere, most brands are attempting to shift their image towards sustainability. With enhance in awareness and consciousness each from the client and manufacturer sides, quickly style is in a passing phase and is getting replaced by sustainable style. Hence, brands across categories are attempting to redesign their offerings in a way that they can be as close to getting sustainable as achievable. The customer today, specially, Millennials and Gen Z purchasers, are more atmosphere conscious and they are totally shifting their focus towards brands which help such an method. For this, the style sector across the globe is moving towards sustainable approaches to thrive in the marketplace. The brands are adopting conscious sustainable practices in a way to not only attract a loyal client base but also present their duty towards the atmosphere.
Do you believe there are any textile reforms necessary in the nation? If yes. List one.
The current GST council meeting has proposed a structural modify to appropriate inverted duty structure in ‘footwear” and “textile” sector which may well considerably effect the readymade garments as effectively if standard price of GST of 5% on garments up to taxable worth of Rs. 1K goes upwards as retailers would have a dual challenge i.e. apart from managing future effect of upward tax, the added burden of subsumed GST on in-residence inventory as on as on enforcement date would squeeze the margins. This key impacted challenge has to be dealt with accordingly by the authorities.