The IRDAI has received representations from the insurers for an exemption to all health insurance policies issued by insurers from the requirement to issue physical policy document and hard copy of proposal form
Those who hold jobs that cannot be performed remotely are routinely losing their jobs. Unemployment in many economies has shot up as businesses do not have the wherewithal to pay salaries when there are no revenues to support them.
This has led to over 25% jump in billing by some brands across segments as omni-channel retail takes centre stage amidst growing cases of coronavirus in the country, said According to a latest report by Anarock & Retailers Association of India (RAI) titled ‘Indian Retail – Certainty Despite Headwinas’.
The survey, which was conducted online with organisations with over Rs 500 crore revenue, and took responses of more than 100 CXOs (top management officials), found that "60 per cent expect festive seasons to go down by 25 per cent versus last year".
In Manhattan’s major retail corridors, once-packed sidewalks are now nearly empty. A fraction of the usual army of office workers goes into work every day, and many wealthy residents have left the city for second homes. Many stores are still closed, some permanently, while those that are open have very little foot traffic.
Emkay Global says the fall in crude prices and moderating agri-input prices should drive margin gains for most staples.
The 35% consumer base expansion is striking since pre-pandemic, chemists accounted for around 10% of FMCG sales. Personal care and infant care products have always been regular items on pharmacy shelves.
The move, which comes against the backdrop of the Centre allowing malls to reopen, is expected to help retailers — from Future Group and Arvind Brands to Lenskart and Bata — tide over nine to 12 months of less-thanusual footfalls.
Big Bazaar said online or telephonic orders accounted for about 30% of the hypermarket’s sales, even as the bulk of sales continued to be through customers visiting stores even during the lockdown period.
Under Canara Bank's new scheme MSMEs, retail borrowers are eligible to avail from 10-35% of their existing working capital or loan limit depending upon category of borrowers on softer terms up to 30.06.2020. No additional security is required for the said facility.
An early outbreak of the virus was followed later by a surge in cases among Singapore's sizable migrant worker population. That prompted authorities to suspend nonessential services and close many offices to stem the spread of infections. The economy contracted 0.3% from a year earlier in the first quarter of the year and 3.3% in quarterly terms.
Total income during the quarter under review stood at Rs 501.54 crore. It was at Rs 2,082.97 crore in the year-ago period, ABFRL said in a regulatory filing.
Some marquee brands are looking at moving back to streets from malls because of Covid-19.
Covid-19 Impact: Top retailers urge government to open non-essential retail to reset the Indian economy
The Clothing Manufacturers Association of India (CMAI), said only 8% of its members have funds to pay salary next month since 90% of all apparel retail is still at physical stores. "There is no point in manufacturing if retail stores are not open. We need it to open stores," said Rahul Mehta, chief mentor at CMAI that represents about 24,000 clothing manufacturers including Raymond, Future Group and Shoppers Stop.
The company also believes that while vehicle sales have improved in July, the outlook for festive season will depend on how the health crisis pans out, and the long-term vehicle demand will also depend a lot on the fundamentals of the economy.
The list of relief measures includes a waiver on interest on loans for three months and on rentals during the lockdown period. The retailers also highlighted difficulties in paying salaries and emphasised the need for security in retail shops.
"For India, the report estimates job loss for 4.1 million youth. Construction and agriculture have witnessed the major job losses among seven key sectors," said the ILO-ADB report, titled 'Tackling the COVID-19 youth employment crisis in Asia and the Pacific', released on Tuesday. The young people's employment prospects in Asia and the Pacific are severely challenged due to the pandemic, it added.
Logistics developer ESR, a venture of private equity firm Warburg Pincus and global investors, said that it has identified spaces in Delhi and Mumbai and will finalise a site this financial year to build multi-level warehousing. According to property consultant Anarock, with an uncertain post-pandemic future looming over the retail sector, retail players may now need multi-level warehouses within city limits to service cities.
“These are two separate issues: one is rent relief and other is cartelisation,” said Abhishek Bansal, ED of Pacific Malls that operate shopping centres in west Delhi.
While Bata India has stalled plans to open any new store in the next 3-6 months, the footwear maker has invested in expanding its product portfolio to stay relevant. The company recently launched new verticals such as Work-From-Home range with slip-ons and sandals, a collection of washable footwear, and anti-viral masks for adults and children.
If such intermittent closures keep getting extended by local administrations, demand for the entire quarter could be impacted, said executives across sectors.
Given the scenario, brands such as Gap, Hummel, Adidas, Aeropostale and Asics, among others, are giving discounts of 30-60% on various products.
In March, salaries were paid to frontline staff and middle management executives across essential and non-essential businesses. “April salaries are under discussion, but whatever the decision, frontline staff in stores across the board will be paid,” said a person in the know of developments.
The take-off of retail demand in the US and Europe, key markets for India's apparel exports, has been downsized from the early trends in June. Some buyers have revised their demand projections to Indian suppliers by 30-40%, people in the know said. The projections were already lower than last year to account for the economic fallout due to the coronavirus pandemic.
The country's largest carmaker MSI has seen sales improve month-on-month from May till July, and expects offtake to remain robust during August as well.
COVID-19 impact : Food and fashion retail will take a year to revive, predict top industry associations
In a webinar, organised by Trust for Retailers & Retail Associates of India (TRRAIN), the three associations jointly anticipated a 25-30% impact on business with multiplier effect on subsidiary industries and lasting job losses. A survival plan is the need of the hour, they said.
Strong digital wave sweeps virtual stores off their feet: Covid changes how people buy, shopping habits
With safety as the prime focus, retailers are forced to adapt to the new reality.
A week after markets regulator Sebi asked companies to disclose in detail their estimated and expected losses due to the Covid-19 pandemic, disclosures by some of the leading corporates show that loss of revenue, along with the availability of labour and logistics challenges, top the list of hurdles.
TCS, Infosys and HCL will be hit by the reduced technology spending by clients in the US and Europe.
The FAQs released by the State Bank of India provide clarity on the list of documents that a borrower needs to submit, if eligible, to get his home/auto/education/personal loan restructured. The loan restructuring scheme is available until December 24, 2020.
Kishore Biyani is planning to sell a massive stake to Amazon in an attempt to keep its crown jewel afloat.
In terms of business impact of the lockdown, HUL said it has severely impacted the FMCG market and the loss of livelihoods has taken a substantial toll on consumer demand.
According to a senior industry executive, who did not wish to be named, e-commerce companies are finding it difficult to procure passes for their logistics and delivery staff separately for each state. The person said the process is time-consuming and instead the government can look at alternate mechanisms like digital identity checks.
"We are conscious of the dealer business conditions in various parts of the country and we have been prioritising production at our end as per dealer requirements, both in terms of quantity as well as the grades that they require," TKM Senior Vice President, Sales & Service, Naveen Soni said.
Should fashion weeks be dismantled and rebuilt? Are cycles of new items every six months still the best approach, at a time when garment overproduction is under scrutiny, restricted lifestyles are commonplace and runway spectacles can feel out of step in a world with different priorities? These are only a few of the uncomfortable questions.
The Retailer Association of India (RAI) has asked the govt to help the industry cope with the detrimental effects on their business amid the virus pandemic. "Allow us 90 days of grace period for depositing all statutory dues, like Income Tax, Advance Tax, GST, ESIC, PF etc. for payments falling due between March 1 and June 30, 2020," RAI said in its representation to the govt.
Bank credit is an important factor illustrative of the general economic climate because it denotes aspects like the investments which are happening in a country or consumption of high-value items. Crisil expects a 5 per cent contraction in India's GDP for 2020-21.
Years of deferred investments in clean water and sanitation are now putting everyone at risk as the virus spreads through developed and developing nations generating a cycle of infection and reinfection.
Retailers said indications of hoarding came from the increase in average bill values over the past few days and consumers making repeat purchases. Some states including Maharashtra have said the lockdown may be extended in certain areas, while social media rumours are also rife, fuelling such purchases. Even kiranas across the country have restricted the sale of essential food items.
As the economic disruption made consumers rethink consumption habits, movement restrictions served a body blow to most businesses. Conventional norms were questioned and established business strategies made way for quick-thinking and fast-adapting work processes.
Franchisees need support from their franchisors, not exploitation. Even if the government disincentivises exploitative behaviour in view of this coronavirus crisis, the franchisee businesses would continue to be at the mercy of their franchisors in the future unless a franchisee law is enacted to protect their interests.
These changes to Ind AS will allow companies to show the Covid rental concessions in their P&L accounts. The move comes as a huge relief for airlines or retail chains that have many assets or properties on hire. Until now, if any terms and conditions of an existing lease contract changed, then it would have to be treated as a new lease contract.
The tech company said it will update the reopening dates once it has been finalised.
Chicken prices, which had come down to Rs 160 -170 per kg a week ago have risen to Rs 210-Rs 220 per kg. Fish prices too have shot up for consumers as the sporadic shutdowns kept retailers away from the wholesale market. Fish prices have increased by 10% -20% at the consumer level depending upon the variety and quality of fish.
Industry watchers say wholesalers are holding back stocks of popular phone models in anticipation of a price rise by the month-end as production in China slows; brands as yet unaware of complaints.
Butschek said that the operating location of an executive doesn’t matter as much these days, with the company focused on executing the “transformation” roadmap set out four years ago to turn around the business.
TCS is expected to see revenue drop by 6%, Infosys by 5% and Tech Mahindra by 9%.
As people hunker down at homes, fearing for their health, worried about their jobs and bored out of their minds, a variant of The Lipstick Effect is playing out. From panic buying to indulgent buying, the consumption pattern during Covid-19 has traversed quite an arc, at least for some.
Market activity was stalled in top gold consumer China, which was trying to prevent a second wave of infections.
Operating profit of the country's biggest retailer by revenue almost halved in the quarter, as its fixed cost remained almost similar to the pre-lockdown period despite store closures. The company posted net sales of ₹31,633 crore in the three months ended June 30. Earnings before interest, taxes, depreciation and amortisation fell 47% to ₹1,083 crore.
The company said India continues to be amongst the most attractive retail markets globally with its strong demographics and growing consumption, factors which will continue to play out over medium to long term.
Elaborating on consumer spending habits, the KPMG India survey said,"78 per cent of the respondents claim to reduce on discretionary spending...tier-II and -III cities are 1.9x more positive than the tier-I cities."
E-grocers BigBasket and Grofers, ecommerce firms Amazon and Flipkart, as well as B2B platforms Jumbotail and Udaan cautioned consumers and kirana stores to expect delayed deliveries as they deal with operational upheaval caused by the restriction on manufacturing and movement of goods, and people.
SAIL posted a consolidated net loss of Rs 1,226.47 crore for the first quarter ended June 30, mainly on account of reduced income.
Mukesh Ambani hails RIL staff as 'frontline warriors', reiterates co's role in India's war against COVID-19
In a mailer to over two lakh employees of the oil-to-telecom conglomerate, the country's richest person said he was humbled to witness each one of them displaying extraordinary levels of commitment in battling most formidable adversity in modern history. In an internal note emailed on April 4, he informed of comprehensive COVID-19 tracking and treatment facility for all RIL staff.
Banks are likely to face significant defaults in payment and miss internal targets as more and more states announce lockdowns in the wake of the coronavirus pandemic, senior officials of a number of lenders said on Tuesday.
There could be as many as one crore job cuts in the textiles sector due to Covid lockdown, as per CMAI.
With several states announcing lockdown to curb the spread of COVID-19 pandemic, rating agency ICRA expects around 45 per cent of the rated mall portfolio to be vulnerable.
Production cuts will be most in premium portfolio as consumers curb discretionary spending.
As per estimates by apex body CAIT, Holi related Chinese goods worth about Rs 500 crore is lying with importers in Delhi, Mumbai, Bangalore and Chennai, while another Rs 3,000 crore worth of Chinese goods are lying in supply chain. The CAIT said consumers are also refraining in visiting markets due to the Corona scare resulting in further loss in business.
Apparel retailers' FY21 revenue may fall 30 percent on store closures, low demand due to COVID-19: Report
The country has been put under a lockdown since March 26 to arrest the COVID-19 infections' spread, which is yet to be fully lifted. The lockdown has chilled all economic activities and severely affected demand situation in the country.
"Rural demand is little better than urban right now. In Maruti, the rural share has gone up to 40 per cent in June which is 1 per cent increase over the last fiscal," MSI Executive Director Marketing and Sales Shashank Srivastava told .
In order to provide customers with a solution for their shipping needs during these trying times and to further use our Air Express Logistics service to keep the essential supply chain continuity, Blue Dart Express has reduced its Retail Tariff Prices by 25 per cent. This will be applicable to all local retail customers as well as all MSMEs.
Since early February, malls and retail stores witnessed a huge dip in footfall with nearly 20-25% drop in revenue. While post lockdown, most companies will have to tweak their layout, seating arrangements among other things, business model of cinemas will take time to change.
MG Motor India on Sunday reported retail sales of 1,376 units in February, hit by component supply constraints from coronavirus hit-China and other locations.
US gold futures gained 0.8 per cent to $1,538 an ounce.
India’s March 25 decision to impose a three-week lockdown on its 1.3 billion people was the most far-reaching measure undertaken by any government to curb the spread of the coronavirus. It has helped plunge global energy markets deeper into turmoil just as hopes had started to surface that resurgent Chinese demand could offer some support.
A 2008-like financial contagion is not yet priced into this market, say experts.
The Impact Covid-19 dented demand, especially in overseas markets, as discretionary spending was knocked by health measures
Job cuts has led to an increase in work pressure thus impacting the work life balance.
The Tata Motors spokesperson said the British subsidiary was working towards an orderly return to production as soon as conditions permitted and was tightly managing all costs and investments, as well as working capital.
Lockdown aims at mitigating the risk of contracting the infection through community spread. Although blanket shutdown has its own downsides, but it has effectively worked as a containment measure such as in China. Others have asked for a more targeted approach and not a blanket lockdown.
Leading salons such as Lakme, BBlunt, Enrich and Bodycraft are planning a seismic shift in day-to-day operations to inculcate safety measures, as they seek to woo back the fear-enveloped customer amid the coronavirus outbreak. The five-billion-dollar salon industry, which has been under lockdown for eight weeks, anticipates sales to recover only by the fourth quarter of the fiscal.
The rating agency said corporate revenues had been falling for three quarters prior to the last one due to the weak macroeconomic climate but had never declined by as high as the 31.1 per cent for April-June 2020 as compared to the year-ago period.
Most luxury brands feel that the negative impact of the outbreak will linger even after the lockdown is lifted, it said in the ‘Impact of Coronavirus on Luxury Industry’ study. “Around 79% of the respondents feel that customers are in a wait-and-watch mode since they are unsure of the likely turnout of events,” Luxury Connect said.
From a vertical perspective, HCL's exposure to verticals which have seen a major disruption due to the CorovaVirus like Oil & Gas, Travel & Hospitality, High-End Retail is in single digits. HCL said that its business model is a healthy mix of recurring product revenues, managed services and discretionary spend led professional services.
“We aren’t trying to profiteer at the expense of landlords. As longstanding business partners, we are hopeful that landlords will extend their support in these times of unprecedented crisis,” NRAI president Anurag Katriar said.
Global economies may feel the impact of Covid-19 for a longer period of time even if there is a decline in number of new cases, or a discovery of a vaccine against the virus, said Sanjeev Prasad, co-head, Kotak Institutional Equities. In an interview with Sanam Mirchandani, Prasad said investors would prefer owning large-cap stocks and betterquality companies than investing in the broader market. Edited excerpts:
India faces a sharp decline in government revenues and economic growth for at least two quarters as the coronavirus hits economic activity and a fall in investor sentiment impacts privatisation plans, government and industry sources said.
Covid-19 Impact: Cycle Pure Agarbathies holds back prayer product launches to shift focus on hand sanitisers
“Once supply chain opens, we will retail our hand sanitisers nationally. We will also launch liquid soaps and home care products like cleaners because we have the advantage of being in the fragrance space already,” said Arjun Ranga, managing director of N. Ranga Rao & Sons that owns Cycle Pure Agarabathies.
Several apparel makers and fast-moving consumer goods companies had earlier stepped up to produce medical-grade masks as a philanthropic act when Covid-19 struck but now it is apparent that the pandemic is set to alter lifestyles for at least some time to come.
Indian payment companies get 90% of their point-of-sale terminals from China and their imports are now on the verge of getting disrupted as Chinese manufacturing activity is still reeling from the Covid-19 outbreak.
It is only during crises like the current one that our faith in ourselves is shaken, making us wonder if we could do with outside help. If you too have been thinking about the need to hire a planner to guide you through the ongoing crisis and beyond, ask yourself these five questions.
While the president blamed Biden, his Democratic foe, for siding with ``anarchists,'' Biden, in his most direct attacks yet, accused Trump of causing the divisions that have ignited the violence. He delivered an uncharacteristically blistering speech and distanced himself from radical forces involved in altercations.
Wide variance in the local interpretation of rules has led to confusion and unwanted crackdown.
The outlook for sales isn’t entirely bleak. Car sales have rebounded in China.
In Mumbai and Pune, traders have issued statements that they will shutter their shops on Wednesday, while Nashik merchants said they would do the same. In Delhi’s Azadpur market, supplies poured in normally, but purchase by retailers was down 60-80%. However, government officials have ruled out closure of grain and vegetable markets.
The country recorded its deadliest day of the coronavirus pandemic on Thursday with 14 deaths, taking total fatalities from the virus to 190.
Though the sales of the company is getting back to normal levels, the health crisis has imposed incremental operating costs on the business, said Tata Consumer Products Ltd (TCPL) in a regulatory filing.
Covid-19 has created not just a health emergency but a financial crisis. It could not have come at a worse time for India, already in the middle of a slowdown.
At least, four companies told ET that they were thinking of reducing their temporary staff by 40-60% this month to rein in costs amid uncertainty due to the Covid-19 pandemic.
Last week, RIL announced that it will acquire Future Enterprise Limited's (FEL) consumer business for a purchase consideration of around Rs 24,713 crore.
When is the Government going to respond? Businesses look for assistance as coronavirus starts hurting
With their very existence at stake, many businesses are wondering what’s taking govt so long to provide a bailout.
Three decades of liberalisation and attempts to transform into an industrial nation notwithstanding, India remains an economy largely dependent on monsoons and agriculture. Nearly 60% of its population still lives off farms and allied activities. Good prices for farm produce means higher incomes in rural India, consumer durables and discretionary goods.
Deliveries have been delayed and some items such as sanitisers have gone off shelves or are unavailable online. Retailers and fast-moving consumer goods (FMCG) companies said there are no shortages and that they will speed up supplies to shops besides seeking to curb hoarding. They said sales are up 15-45% depending on the category.
Nielsen also expects consumers to be bearish on discretionary spending such as movies and restaurant visits, luxury brands and leisure travel, and defer spendings on fashion, personal grooming and home decor even in the coming months after the magnitude of the outbreak lessens. They may also spend less on alcohol and tobacco products.
The suggested support measures include complete waiver of interest on all categories of loans taken by dealers, 4% interest subsidy for nine months post the lockdown, and payment of employees’ salaries during the lockdown through the Employees' State Insurance Corporation.
Placement firm TeamLease Services has received 22,367 resumes in May from hospitality sectors alone, up a staggering 444 per cent from 4,109 in the previous month. Professionals who are proactively looking out have either been handed out pink slips or are facing job threats as their companies take the restructuring route, said executives aware of the matter.
The analysis by the UN Department of Economic and Social Affairs (DESA) said the COVID-19 pandemic is disrupting global supply chains and international trade. With nearly 100 countries closing national borders during the past month, the movement of people and tourism flows have come to a screeching halt.
The country’s largest retail group comprising modern retailers including Future Group, Reliance Retail and Shoppers Stop have asked the government for April-June “job support subsidy” of 50% of minimum wages for retail employees through direct benefit transfer and said the retailers themselves would bear the rest.