Pre-Onam sales in Kerala have been severely hit by the coronavirus pandemic this year, with both the textile and home appliances sectors suffering the most. TNM spoke to stakeholders in both industries in Kerala, who have pegged their loss of revenue at 70 percent, compared to that of 2019.
The week before Thiruvonam, one of the biggest festivals celebrated in Kerala, usually witnesses a surge in sale of Kasavu sarees and mundus - the traditional cotton gold bordered handloom textile weaved in Kerala. Festival sales are also big in retail outlets which sell designer saris, Indian wear and Kasavu sarees and Mundum-Neriyathum.
However this year, the brick-and-mortar stores of these textile shops have seen negligible footfall. “There is a general dip in retail, whether upmarket or otherwise. Industry experts have said that there is a 70 percent dip in sales. Our shop has been closed since lockdown. But even after we opened, we saw that business was dull as there were practically no visitors to malls, and both my stores are located inside malls” says Shalini James, who owns MANTRA, an upscale designer label which deals with Kasavu.
Traditionally, the months of August and September are great for textile sales in Kerala due to the NRI (Non-Resident Indian) population visiting during these months, and also due to Onam and business during the wedding season which begins in August.
However, this year, the number and scale of weddings have shrunk and Onam festivities in the state too are minimal. “Since there are no NRI customers coming in, we have seen a shocking dip in the sales this year,” Shalini adds.
Anish Rajendran, owner of Karalkada, one of the most renowned Kasavu Saree and Mundu shops in Thiruvananthapuram agrees. He says that the pandemic has robbed them of 40-50 percent of their Onam revenue.
“Usually our stocks are over before Onam begins. But this year, we are full on stock and we have not had people visiting our physical store. Some online sales have happened but not as much as the business we do in our physical stores. Compared to the previous years, this year’s sales are definitely dismal,” he adds.
For Karalkada, which sells sarees with pure gold zari, business picks up during the Malayalam month of Chingam - right before Onam and goes on till September. “Even last year and the year before, when the floods happened, we had better sales compared to 2020,” Anish says.
ES Biju, state secretary of the Kerala Vyapari Vyavasaya Samithi, pegged Onam revenue from the textile and home appliances industries at over Rs 1000 crores each.
“Good business in the home appliances sector also means that the state gets high GST revenue, as most products in this space have an 18 percent GST. So a dip in sales also hits the state’s GST returns,” he explains.
The home appliances sector in Kerala has seen a 60 percent dip in sales, according to experts. However, with the state government extending the time of doing business from 7 pm to 9 pm, the shops have been able to manage.
“Most people have stopped coming in to buy because they have low purchasing power now. Usually Onam means people get bonuses and hikes. But this year, the pandemic has left people jobless or hit by salary cuts. Hence, we can see people spending cautiously,” T Naserudhin, State President of Kerala Vyapari Vyavasaya Samithi told TNM.
Other industries including flower sales and food have been partially disrupted due to containment measures by the government.
“Most of the flowers come from Tamil Nadu. This year the government has not allowed flowers to be brought in from other states and hence sellers here are in the lurch. With no public Onam celebrations this year, there is a natural dip in the demand for flowers. Pookalams are only going to be made in houses and there is a limit to the demand in such a case,” Naserudhin added.
Another line of business severely affected are smaller shops located closer to temples in the state.
“All of them are hit as the temples have been shut for months or are now only allowing a restricted number of visitors. There are thousands of such shops in the state which are suffering,’ Biju says.