On his official Instagram account, fashion designer Sabyasachi Mukherjee shared Smriti Irani, Union Minister of Textile’s appeal to the buying industry not to cancel a single order as the world is “engulfed with coronavirus”. Dastkar’s (a society for crafts and craftspeople) chairperson, Laila Tyabji has spoken out on how this community is the most vulnerable during lockdown and will continue to be so after the pandemic subsides.
Globally, Covid-19 is the biggest crisis to date for the apparel and fashion industry. In India, where the textile industry is the second largest employer, its health is critical to the country’s welfare. Will the fashion design industry, important to the sector’s ecosystem, be another casualty? Sandeep Khosla of prominent label Abu Jani and Sandeep Khosla (AJSK), known for reviving crafts such as chikankari , agrees with Tyabji’s sentiment but points out, “If we go bust as designers, we lose the ability to be employers and safeguard our workforce.”
Designers and craftspeople are intrinsically linked. “We need our craftsmen as much as we need our blue collar workers in order to sail through these times and in the years to come,” explains Narresh Kukerja, creative director of what many consider the country’s first swimwear label, Shivan and Narresh. A younger label at just 10 years (who delayed this month’s celebrations around this landmark due to the current situation), their store in Mumbai’s Kala Ghoda was on the anvil, but will now be put on hold.
Trickle-down effect
Rahul Mishra, India’s first designer to be invited to show at Paris Haute Couture Week, has a workforce of 1,000 people who work with him directly and indirectly. He explains that “the one on top of the hierarchy often finds [themselves] responsible for various people — whose families’ lives depend solely on the salary they are paid. With sales gone down to zero in the past month, the inflow of money is completely on halt”.
Designers Abu Jani and Sandeep Khosla
Fashion designers are trying to do their best for their employees — for example, AJSK are paying full salaries to staff despite the lockdown and hope to be able to do this for as long as they can. “Of course, this will not be possible indefinitely as we are not a corporate with a long-term financial buffer,” says Khosla, adding that it is essential for the government to intervene to support the industry. Even after the virus’s containment period, businesses may go back to normal operations, but consumption patterns are set for a complete disruption.
But what about the ₹1.7 lakh crore Gareeb Kalyan Yojana announced by Union Finance Minister Nirmala Sitharaman on March 26, to help the poor tide over the coronavirus lockdown? Fashion designer Tarun Tahiliani has this to say: “I’ve not seen the entire thing, but [it seems] a series of paltry measures that don’t address industry and job creation. Collateral-free loans mean there is no security and may add to bad debts. And EPF is a minimal thing. Frankly, it sounds better than it is.”
The big Indian wedding no more
While a few labels are encouraging pre-orders to ostensibly help their artisans earn and stay occupied at their homes, the situation is grim. “With no cash inflow in the markets, buying will be hugely hurt, especially in this niche segment,” says Sunil Sethi, president of the industry’s apex body, the Fashion And Design Council of India (FDCI). Weddings, the mainstay of Indian couture, have been postponed indefinitely. “We are in the business of crowds and while there is even the slightest doubt in people’s minds that there could be a second wave of the pandemic, and until there is a vaccination against it, I think people are going to be wary of going out,” continues Tahiliani. The domino effect will be that retail footfall will drop, as will the occasions that designers dress clients for.
Fund for emerging designers
So what has been done to help the fraternity in these uncertain times? Over the weekend, the Fashion Design Council of India announced the Covid-19 Support Fund (CSF by FDCI) to “provide financial assistance to small businesses and young designers in need”. According to Sethi, the fund would be “a relief fund for greenhorns who most likely will be struggling with production and loss of revenue as they don’t possess a consortium of funds”. It is supported by the who's who of the industry, the latest being the Lakme Fashion Week (LFW). “Currently, it means that there is no intent to be counter-productive by having multiple similar actions in the industry,’’ says Jaspreet Chandok, Head of lifestyle business, IMG Reliance that jointly organises LFW with Lakme. The differences between the rival bodies are well documented. “It is a time for unity… As the structure of the fund and the usage of it is finalised and shared, we will contribute as well,” Chandok adds. Rent, GST and loans
Meanwhile, the designers have a clear understanding of what the relief packages should be. For Kukreja, the main concern is rent and he says, “A big chunk of a designer’s revenue is spent on rent to landowners. The government must intervene and come up with a plan for business owners as well. We’re a country of job creators and if you don’t support business owners then you can’t support the bottom of the pyramid much longer.” Khosla feels that a three-month GST freeze period could help. Tahiliani takes it a step further feeling this is an opportune time for the government to re-examine the GST system. He feels there are practical issues with the tax system. “It makes shipping much more difficult and also hard to work as simple employees. So the idea of the craftsperson being self-sufficient and self-sustaining is necessarily skulled by that. Now, for the greater good, perhaps the country needs a completely different system,” he opines. Khosla also hopes for support from banks on delaying interest or repayment of loans to recover from losses incurred by Covid-19 outbreak. Meanwhile, Mishra is already in touch with a few banks to figure best solutions for any liquidity requirements.
3Qs with FDCI president Sunil Sethi
How large is the fund?
As of now, it is just seed money; it is too early to talk figures. All the money till date has come voluntarily from FDCI board members, including me. Every industry has to help itself now. We have not asked for contributions because we don’t believe this is the right time. It is hard to know whether it can be covered as a CSR activity [for corporates] or under the 80G certification [that makes the donor eligible for tax benefits]. Figuring these things out takes time and the lockdown is not making it simple. How do you plan to disburse the money?
The application process has not started yet. The designers will have a clearer picture of what they need after March 31 [the closing of the year]. How will the fraternity benefit?
It is going to be tough times ahead. [The thing to remember is] when you help a designer you are also helping the tailors, weavers and embroiders who work for them.
The writer is a former editor, luxury consultant and author.
