The irregular lockdown has affected the sales and businesses worldwide thus India based branded fabric and fashion retailer couldn’t abstain of it.
Recently, in an interview with ‘ET NOW news,’ Raymond CMD Gautam Singhania enlighten the problems that lockdown is causing among businesses.
While addressing his concern about the pandemic he said, “We are in the middle of a pandemic and it is here to stay. While people are mostly speaking about sitting at home, work from home, etc. I think people are just focusing on WFH…what will you work on if consumption is not going to happen? And, consumption will only happen if you open up the markets. Now, a lot of countries in the world did the lockdown for one specific reason and the reason was that you do the lockdown to build up your medical infrastructure and you let it open up. But, to keep it in the lockdown state is detrimental to the progress of businesses.”
Keeping the pandemic in mind Raymond is reducing the rents and jobs. They have decided to decrease the marketing costs by 35% for the financial year started April 1, Singhania informed in a virtual interview.
Company has re-opened 1,332 out of 1,638 stores as of July 2 and is seeing about 45% of pre-pandemic sales, Antique Stock Broking Ltd. says in a note to clients citing a call with Raymond management.
He mentioned, “I completely empathise with the issue of coronavirus and deaths due to that. But, I don’t think anybody is seeing the actual deaths of businesses, lakhs of people who are losing their livelihood, the difficulties the migrant workers are going through. So, I genuinely believe that we have been in four or five months of lockdown and I believe now it is the time to open up. That is the only way to recover.”
He seemed quite confident about the convalescence and the position of the company “When you are a strong brand, a recession always plays in your favour,” Singhania said.
He added, “See if you take the month of June…most industries saw a recovery in demand. But, these frequent and repeated lockdowns are causing the problem. If you see most of the wholesale markets are in the lockdown cities. Mumbai, Delhi, Chennai, Bangalore, Kolkata, and these are very large wholesale markets that are in a lockdown they really feed the rest of the country.”
Meanwhile, Confederation of Indian Industry (CII), a leading industry association in India, carried out an online survey where around 200 CEOs from various sectors and industries participated.
“The survey results indicate that a significant majority of the firms expect revenues to fall more than 10 per cent and profits to decline more than 5 per cent in both the current quarter (Apr-Jun 2020) as well as the preceding quarter (Jan-Mar 2020). The expectations of this sharp decline in both revenue and profit growth by domestic firms could foretell the significant impact of this outbreak on GDP growth,” CII stated.
According to the survey conducted by CII, There are some haunting facts about the condition of jobs in India, “On the jobs front, about 52 per cent of the firms foresee job losses in their respective sectors, resulting from the impact of the coronavirus outbreak and the ensuing lockdown. While the proportion of jobs that are expected to be cut are quite staggered, a significant proportion of the firms (47 per cent) expect less than 15 per cent job losses, while 32 per cent of the firms expect to shed about 15-30 per cent of jobs once the lockdown ends, ” asserted a PTI report.
Notably, Coronavirus has affected the lifestyle of mankind in all aspects of life. The consequences are scary but let’s hope for the best. This shall pass too.