18 January,2009 06:33 AM IST | | Amita Amin-Shinde
How the economy is burning a hole in designers' pockets
Some designers admit to it, while others say they may feel the pinch later. But most of them know that if the market doesn't improve, it'll be time to curb expenses and think up novel ways to survive.
Says Kolkata-based Abhishek Dutta, "I have faced the brunt of recession. I increased the wages of my karigars just five months before recession hit. Now, I can't reduce their wages. So I cut down my profits by 10 to 15 per cent. I am also cutting costs by using machine embroidery instead of hand. And, I am using what we call 'waste' from the garments, in my furnishing line. Aesthetically, it still looks good and is correct. I can't compromise on the quality or the creativity. I think this is a novel way to survive."
Says Paras of Geisha Designs, "I am a victim too of the economic meltdown. Earlier, when clients came to buy, they would try five pieces and pick up all five. Today they may try on five pieces but they'll think a lot before buying even one." Paras had to shut his flagship store in Delhi and now retails from multi-designer boutiques. "Let's face the facts.
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Not as many people are shopping as before and it's important to retain existing clients, rather than make new clients. There is a brighter side to all this though. This is the time to internalise and ask whether the people working for you are performing. It's time to remove the few bad apples. Just yesterday, as mundane as it may seem, I was looking at the housekeeping equipments and seeing what we really needed and what we didn't."
JJ Valaya, on the other hand, has gone in for an expansion with three stores two in Emporia and one in Crescent.
"I went ahead with opening the stores because it was planned in advance. This was supposed to have been the key year for my business expansion. But now I am not planning any more expansions for at least a year. Perhaps I will go ahead and open another store but that, again, is only because it was already planned." That doesn't mean Valaya hasn't been cutting costs. "I have restructured my company, got rid of unwanted people. After all, money saved is money earned."
Maverick Rohit Bal, who was vacationing in Goa last week, says that he is yet to feel the pinch. "But that doesn't mean that it won't happen in the future. I am going to be careful," he says.
Rina Dhaka is forthright in admitting that high rentals are eating into returns. "Rents are turning out to be expensive. I have reduced my cost by cutting down on margins. Business is not booming. While customers continue to order, it's been cut by half or less than half. Thankfully, Indians and Chinese don't stop buying," she laughs.
Ashish Soni has, however, not reduced staffers, their wages or his profits. Instead, he has shut down two non-profitable stores one in Delhi and one in Mumbai and now operates from two workshops instead of three.
"I have re-looked at recurring monthly costs. Excessive electricity is being monitored. Earlier, we didn't bother about phone bills and had seven landline connections. Now, we have just two. It's better to be watchful than be on the back foot."
Anupama Dayal has sliced off profits too. "I have slashed my prices and it has eaten into my mark-ups. But it's okay. I guess one has to change the strategy a bit. Now, instead of concentrating on the US and European markets, I am looking towards the Arab countries," she says.
This time, even the usually buzzing and busy wedding season took a hit in terms of business.
Says Valaya, "The wedding season was believed to be recession-proof. This time, there is a slight difference in market realities. Sentiments dropped after the Mumbai terror attacks resulting in a drop on NRI influx."
Rina Dhaka seconds him by saying, "People who were getting married with seven ceremonies cut down events to the basics. The clothes are not so lavish either."
Abhishek feels that the bridal line wasn't affected so much by the economic meltdown but he does add, "When a client comes to me, he or she may order a Rs 2 lakh or more saree, but cut down on a saree or two for the trousseau. After all, at the end of the day, you wear the garment only once in your life."u00a0
Sabyasachi says that people are beginning to look more closely at value, instead of falling for spontaneous indulgences. "They want value for money and aren't ready to pay unjustified amounts. I guess they want to allocate their funds. I haven't really experienced that because I cater to the top-end segment. But yes, perhaps a client who would have bought 10 outfits for her trousseau may go for just four."
Meanwhile, Gayatri Khanna says, "If you ask me about making a sale in the international market, well, perhaps Bloomingdale or Saks may not place an order but there is a good chance that the collection will be picked up by smaller boutiques."
However, export buyers have cut down on the number of pieces they order, says a source, who adds that at a meeting held by the Fashion Design Council of India president Sunil Sethi with the designers, the only question the designers had: Will international buyers come to the upcoming fashion week?
Now, that's a question only time will tell.
Coloured
While colours for the Fall Winter collection internationally are mostly subtle or muted, most Indian designers don't follow world trends. This time around, that may change. Here's what our designers feel:
Sabyasachi Mukherjee: During the wars, the more successful movies were the musicals because they helped create a sense of fantasy. In the same sense, one tends to make clothes that will not reflect what's happened or is happening. People don't want to be reminded of bad things. If anything, it calls for cheerful clothing.
JJ Valaya: There are two ways of looking at it either we go the somber way or take the buoyant route and diffuse the gloomy situation. I feel one is going to see both kinds of interpretation in the months to come. That, however, will not affect the summer line...that's ready.
Gayatri Khanna: I did create a somber collection but I think people want to get back with their life. I was planning to use deeper colours for the coming season anyway and I am sticking to that. I will be using deep red and purple, browns, pastel colours, ivory and black. The cuts will be simple and clean.
Rina Dhaka: The colours for fall are rarely bright except for flashes of red. I guess the red will get replaced with orange or purple. There is a reflective feeling of somber.
Nikasha Tawdey: Happy colours are the call of the day, with non-fuss and loose silhouettes. I think on a subliminal or sub-conscious level, the trappings of the outward appearance are becoming simpler. My latest collection is an all white and cream one. It's simple.
Abhishek Dutta: Recession and terror attacks made black and red colours prominent. People are looking for subdued stuff.
Ashish Soni: I think it will be interesting to see what international designers come up with. I feel our collections should be cheerful, with a burst of colours and prints that will make one feel fresh and alive. I am finding a middle ground.
Anupama Dayal: You will see colourful garments. You will see fun colours. Good dressing is also a tool to rebuild bruised self-esteem.
Paras: I think it's a time to design practically. We have also gone low on embellishment. It's gone a little industrial, if I may say so.
