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still hesitant to use these options as
they have security concerns.”
Even the exporters who do not
depend on domestic demand are facing
problems paying their workers and
procuring raw materials “We are an
exporter hence we were not affected
due to this on the demand side,
however, for procurement of raw
material and paying our workers we
faced problems” says Sheetal Sharma
the proprietor of Ritu Kreations.
Distributors were also not left
untouched by the impact either, Ajay
Chopra from AC Enterprises, a Mohali
based distributer explains how
demand has gone down since
demonitisation “50% bookings have
gone down and as long as money flow
does not take place consumer demand
would remain low, forcing the
manufacturers to cut production.”
Some feel that the full impact of
demonitisation is yet to be felt. “The
wedding season is a peak shopping
period and is mandatory for families.
Hence the impact is lesser. The after
effects of demonetisation will be more
evident in January and February as
during that time we will find the sale
clearance to be low and this would
result in early sales,” said Amit Luthra,
a New Delhi based distributer. Kirti
Gandhi, a Delhi based distributer said,
“Demonetisation is a big mistake; the
Prime Minister will regret this
decision. This step has led to
unemployment for the working class,
businessmen are suffering due to
paucity of demand, people are unable
to withdraw their money and generally
everybody is unhappy with this
decision.”
CK Satangi, Sita Marketing
(Bhilwada based distributer) agrees
with Luthra saying that the market
would take a while before normalizing
completely. “Sales are down by around
65%, November- December inventories
would be carried forward to January
and February affecting the inventory
then. Readymade sales are highly
dependent on cash and there is a lot of
uncertainty among traders about new
policies which might be introduced by
the government. Until the traders
know what sort of a system would be in
place uncertainty would prevail.”
Since traders have been doing cash
transactions for years expecting a
sudden and drastic change is
impractical.
“In Bhilwara denim factories are
closing down for 25-30 days and
naturally even after they restart
operations it would take time to come
back to normalcy,” says Munish
Sharma, Fashion Masters Worldwide(a
Patiala based distributer). He added,
“About 50% of the market consists of
non- branded segment that mainly
operates in cash and they are the ones
who are badly affected. However, those
who are organized and do everything
through online transaction will be
benefited by this move.”
SRTEPC’s vice-chairman Narain
Agarwal while highlighting situation in
Surat said, “From manufacturers to
wholesale to retail and consumer,
there is no demand in the market.
Liquidity of cash is almost squeezed
Amit Luthra, Amit Enterprises
“ The wedding season is a peak shopping
period and is mandatory for families. Hence
the impact is lesser. The after affects of
demonetisation will be more evident in
January and February as during that time we
will find the sale clearance to be low and
this would result in early sales”
Kirti Gandhi
“ Kirti Gandhi, a Delhi based distributer
said, “Demonetisation is a big mistake;
the Prime Minister will regret this
decision. This step has led to
unemployment for the working class,
businessmen are suffering due to paucity
of demand, people are unable to
withdraw their money and generally
everybody is unhappy with this
decision.”
APPAREL&Fashion
January 2017
13