Innovations, digitization can help India’s hosiery sector beat pandemic blues
One of the most resilient sectors during the pandemic, the Indian hosiery sector has however bowed down to the pressures of second wave led lockdowns. As per a Textile Value Chain report, the pandemic has been very unkind to the sector with the industry facing mass labor exodus during the first wave. A similar fate awaits the sector during the second wave if it fails to reassure laborers of their livelihoods. Therefore, to boost production and contain virus spread, the sector needs to convince laborers to stay back.
Reemergence makes meeting remote demands impossible
The Indian hosiery sector is expected to grow at 2.5 per cent CAGR from 2020-25. It holds great significance for both men and women. However, its importance to women manifold as innerwear is considered an individual’s second skin here. The re-emergence of the pandemic therefore, has dealt a huge blow to the sector’s growth as retailers have failed to cater to the demands of remote consumers. This has led to a huge fall in demand leading to a decline in cotton prices.
The complete halt in production has hit smaller players most as they face an acute shortage of liquidity and working capital and soaring raw material costs. These manufacturers mostly rely on cash, and credit and lockdowns and labor migrations have created a huge credit crunch by halting production across the country.
Vaccinations, COVID appropriate behavior to help
A way these players can survive the present crisis is by innovating their product offerings and manufacturing techniques, feel experts. Though the pandemic has restricted physical movement, players can explore their digital capabilities to provide consumers with an online mode of transactions. Digitization can also help hosiery retailers expand their consumer base and boost sales. To fight this deadly virus, the Indian hosiery industry needs to also promote vaccinations and COVID appropriate behavior amongst its members.
