Are we done with recession?

When recession became the buzzword and many were trying to understand its impact, a few fashion designers in the country cashed in on the concept. They launched ‘recession-proof’ or ‘multi-utility’ garments, which can be worn as single pieces or clubbed with trousers and churidars to suit different occasions. Call it innovation or a headline-grabbing gimmick, but fellow designers and boutique owners knew they had to be ready for the slump.

A year hence, designers are hoping that business will be back in full swing during the festive and wedding season. The footfalls, say store owners, have shown an increase of late. Exhibitions such as Aakruti Vastra, Deepshikha Mela, Society Lifestyle exhibition and Lepakshi Silk and Cotton Expo saw a steady stream of buyers that defied all talks of ‘cautious spending’. Saris and garments ranging from Rs. 2000 to Rs. 40,000 had eager buyers. The number of silk and cotton expos showed no decline through the financial year when recession made headlines.

Retail stores had a different tale to tell. Various lifestyle stores offered extended sale periods. Insiders reveal that a leading mall in the heart of the city, which did business of Rs. 1-1.5 crore per month before recession, had to contend with revenue of a few lakh rupees.

The truth lies somewhere in between. Brand consultant Aparna Roddam explains, “Fashion is a luxury product. Internationally, designers returned to classism since classic pieces never go out of fashion. Buyers chose value for money, quality and longevity of garments over trends for the season. Those who never checked price tags at boutiques began making careful purchases.”

A few designer stores resorted to special promotions (read lower price tags) while others were on expansion mode. Anonym boutique moved to a new, spacious address. Also opened its second store in Banjara Hills. Da Design Street went in for renovation with the larger store offering space for men’s wear too. Designer Pooja Singhal recently launched her shop-in-shop brand Ruh at the store. “There’s really been no recession in Hyderabad. When talks of recession began, people were careful. This was also due to the Satyam scandal and people were wary that their spending habits would be watched,” says boutique owner Smita Shroff.

Jewellery designer Suhani Pittie avers. She says, “Anyone who is running a business knows that things have not been bright. Those who would earlier pick up three or four extra pieces than what they had planned for started buying only what they needed.”

The industry saw different tidings in different price brackets. Designer Sashikant Naidu, who has timed his new collection of blouses for Sravanamasam says the impact varied depending on the price bracket and the source of income of the clientele. “The couture market was affected but not prêt wear. Those who would earlier buy a sari worth Rs. 30,000 began asking for saris priced at Rs. 10-15,000. They wanted two or three in place of one expensive sari,” he says. The earn-and-splurge mantra doesn’t hold water. “Stores stocking affordable collections did well,” reasons Sashikant.

Sales have now picked up for the festive and wedding season. Customer discernment, feels Aparna, is the lesson to be learnt from the churning process.