Fashion takes a beating

The rich and the fashionable are feeling the pinch. And it is showing in the way they shop. Designers across India, however acclaimed and internationally known they may be, are reporting a drastic fall in sales, especially as far as international orders are concerned.

In a sharp deviation from the boom that one witnessed in the previous three years, exports had come to a near standstill in the last quarter of 2008, despite India now home to not one but three different fashion weeks.

Most designers agree that overseas business has been affected by around 50 per cent by way of cancellations while reductions of up to 25 per cent per consignment are being demanded by US-based buyers. Designer partners Rohit Gandhi and Rahul Khanna (of the brand Cue), for instance, have decided to withdraw from New York’s fashion exhibitions which they took part in for two consecutive years.

Says another designer Anita Dongre: “It would be better if we could bring all fashion weeks together and focus on trade instead.” Echoing Dongre’s sentiments is fellow designer Ravi Bajaj. A designer who did not wish to be named admits: “In the third quarter last year, I did business worth over Rs 85 lakh. This time, despite the wedding season, I haven’t even done Rs 40 lakh worth of deals yet.”

Says Bajaj: “Hosting three fashion weeks is no indication that the industry is seeing brisk business. It simply reflects that the industry is divided.” He says increase in sales only happened around the wedding seasons. Another blow for designers has been the trend of high-end retail brands going for large sales. Raakesh Agarwal admits that the discounts offered by retail giants (of up to 70 per cent) is affecting business. Large-scale retail businesses are suffering, feels designer Raghuvendra Rathore. He says: “Large-scale retailers are suffering a 10-15 per cent fall in sales.” Clearly, the inventory is piling up and fashion houses can’t wait for the markets to look up.

Crashing Hopes Designers who have reported a fall of at least 20 per cent or more in the last quarter of 2008 Anita Dongre—50 per cent (for couture) Ravi Bajaj—50 per cent (during non-wedding season) Raghavendra Rathore—10-15 per cent (high-end lines) Raakesh Agarwal—50 per cent (overseas cancellations) Rahul Khanna & Rohit Gandhi—20-25 per cent (overseas cancellations)

—Anamika Butalia