How can Small Textile Brands Recover from the Pandemic? | Survival Tips for Textile Industry

Abinaya Arangarajan Abinaya Arangarajan
Oct 2, 2021 6 min read
How can Small Textile Brands Recover from the Pandemic? | Survival Tips for Textile Industry

In the course of the ongoing pandemic, many businesses faced a downfall in their progress of making a profit. Likewise, small textile brands encountered a behindhand in making a life out of the pandemic market.

While the small textile brands are highly populated by poor people, in order to make a small earning by stitching, embroidering and threading clothes all day. After the government of India proclaimed lockdown, many small scale industry workers returned to their hometowns and migrated, waiting to get circumstances back to normal.

Things were normal when the Government set a time duration to conduct their respective business i.e. 10 am to 6 pm. Whereby, small textile brands worked for 24 hours to meet the targeted profit of the day or month or year. But, the coronavirus unfettered the nation with high cases from April to July 2021, imposing tight lockdown again.

According to the reports, it is stated that 70% of workers didn’t return to work and saw a 60% drop in the sales of textile. On the other hand, the small textile brands faced an epic hurdle in purchasing raw materials from the suppliers as it is unsafe in trading, due to escalating death rates in the country.

Besides, the small textiles have to accept those who are willing to do any task, as the industry is facing a lack of manpower. As is the case, there might be unskilled workers joining the small textiles brands which ultimately leads to the production of low-quality textiles; and people won’t buy poor quality products. Β Besides, the small textile brands are bungling the concept of technology.

Here, we’re gonna discuss the chance of small textile brands to expand their market from the effect of the ongoing pandemic.

Impact of the Covid-19 Pandemic on the Textile Brands
Things that hampered the production of small Textile units
How can Textile brands survive the Pandemic
FAQ

Impact of the Covid-19 Pandemic on the Textile Brands

The whole Covid-19 pandemic situation made the economic status of the entire world go upside down. As per the study, the 2020's economy has gone down by –3%.

The world faced a major fallback economically correlated to the 2008–2009 financial crises and the surveys say that it may take at least a year to attain the normal state and solidify their thrift. India is one of the major countries that encountered a high difference, definitely not in a good way.

Considering the available resources and fast-growing markets many foreign institutions were ready to invest in India, and that may have cultivated a huge disparity in the availability of employment.

The textile industry has a huge part in employment creation in India. The closing of the mart ended in creating an unpleasant reaction in the growth of the textile industry; few minor cloth crews curbed their exposition.

Due to the low profit, many units limited their human resources and there were pay cuts. Out of all states, the worst pretentious states in cloth manufacturing during the epidemic are Punjab, Gujarat, Maharashtra and Tamil Nadu.


Impending Challenges in 2021 for Small Businesses
The Covid outbreak was uncertain for all of us, but small businesses were the most affected ones. So, here’s a case study on Challenges in 2021 for Small Businesses.

Things that hampered the production of small Textile units

Fewer Transportation Facilities

Transportation is the primary element that makes a huge effect on production. The businessmen need transport to supply the product, to get the raw materials and to deliver the goods.

Due to fewer transport facilities during the lockdown, the transportation of goods and buying of fresh products for sales were halted. The people were not even able to deliver the finished products.

No Labours

As transport was not available frequently, the migrant workers shifted back to their hometowns. Their wages were cut short and the companies curtailed human resources.

Bihar, Jharkhand, Uttar Pradesh and Orissa are the states that produce large amounts of human resources, considering the less income, transport problem and their health risks, they moved to their places. So the limited availability of the labourers resulted in the production.

Lack of Raw Material

During the pandemic, the demand for the raw crops reduced and due to that agriculture underwent. As the overall demand for the crops reduced, the production of cotton and silk were also reduced, resulting in less or no availability of raw materials. And as the chemical units were focusing on other significant courses, the dealings of synthetic lessened and the synthetic textiles were affected.

No Capital

Many small textile units were shut down as the production and earnings lowered.

Market size of the Textile Industry in India
Market size of the Textile Industry in India

How can Textile brands survive the Pandemic

Well, in some way or the other, many businesses are recovering the loss from the effect of the pandemic by engaging efficiently in producing and serving the goods to the customers. And in the case of small textile brands also hyped their production in many ways during this ongoing pandemic.

Unlike other industries, small textile companies lack digital marketing and ergo became a great drawback in achieving their goals.

Here are some ways that the small textiles industries could employ to stay resilient in the market from the effect of the ongoing pandemic.

Make sure workers are Safe and Vaccinated

During the first lockdown in the nation, many small scale workers migrated as per the government rules. So, the first thing that small textile brands should take care of their workers is to prevent the fatal virus across the nation, whereby the necessity of healthcare nearby, nutritious food and safe & hygienic shelter should be rendered to the workers and make sure their vaccinated.

Stay Informed with the Latest Government Guidelines

Secondly, small textile brands should stay informed; the Government should inform the measures and up-to-date information regarding the pandemic to the small textile industries. As is the case, they will take necessary protocols assigned by the Government in order to prevent the spread of coronavirus.

Make sure your financially stable to operate your business

The small textile brands should be financially stable in meeting requirements such as paying wages to the workers, purchasing raw materials, light & power, fuel and transportation and so on.

Furthermore, industries should be producing goods & services at a minimum cost of production and maximum optimization of the product.

Stay in touch with your key stakeholders

Small textiles brands should be in touch with their key stakeholders in order to sustain an affiliate relationship with them.

Provide Recess time for Workers

Brands should provide recess time for workers, who are working 24/7, as this would aid to reduce the cost of excess labour & augment efficiently and effectively in the production of goods and services.

Make necessary changes according to the environment

Lastly, the small textile brands should accomplish the set of goals without any objections in doing so and respond to any changes happening in the working environment.

If the above points are followed by the small textile brands, then the chances of getting opportunities in the market are high during the pandemic.


What will be the Scenario after Coronavirus Outbreak?
Many economists suggest that recession is bound to happen considering the ongoing threats and situation in which businesses are shutting down, Checkout the possible scenario after Corona outbreak.

Conclusion

The countries confronted a huge economic deterioration. No country was nimble to evade the losses that the pandemic resulted in. The economic rate of the country is poorly approximated to the financial crisis the world faced in 2008–2009. But it doesn't mean it's not possible to improve it.

Fetching back to regular and recouping the stability like before the pandemic may take a few months or also years. And the small textiles that faced a great loss have to find a way to improve their state. They have to create new strategies to sell their products in a modern way and yet not skip and obey the government protocols.

FAQ

What is textile business?

The Textile industry consists of the design, production and distribution or marketing of yarn, Fabrics or readymade clothing.

Which city is famous for textile in India?

Bhilwara is India's largest manufacturer of fabrics and is also known as Textile City of India.

Is textile industry profitable?

Yes, textile industry is considered as a profitable industry for new and aspiring entrepreneurs.

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