NEW DELHI: A day after e-commerce marketplaces received government nod to deliver non-essential items beginning April 20, companies have begun evaluating all possibilities of resuming operations to make the most of this lifeline.
While some, who have been allowed to begin production activities, are unsure how they will do so and at what capacity given the absenteeism of labour and logistics constraints, optimists say that there is adequate inventory to cater to the demand during the extended lockdown.
"Summer is here and we have enough inventory of air-conditioners and refrigerators to meet consumer demands. As our factory in Jhajjar, Haryana is in the green zone, we are also preparing to begin manufacturing soon to ensure sustainability over the longer term," said Panasonic India and South Asia CEO Manish Sharma.
Items such as mobile phone, TV, refrigerator, AC, stationery and laptop will be available on e-commerce platforms from April 20.
According to the fresh guidelines issued by the Ministry of Home Affairs, e-commerce has been deemed as an ‘essential’ service and vehicles used by these companies will be allowed to ply with permission except the demarcated containment zones – hotspots or red zones – where the spread of the infection is high.
Adhering to the new rules, e-retailers such as Amazon, Flipkart, Snapdeal and PayTM Mall are preparing to accept orders and deliver all items, including non-essentials. E-retailers are also awaiting state nod on the ‘non-essential’ goods that can be sold and delivered post which third-party sellers could begin shipping their goods to fulfilment centres of these marketplaces.
State-wise Rajasthan, Odisha, Goa and Maharashtra have so far permitted these firms to function fully, while Uttar Pradesh, Telangana and Karnataka are likely to take a decision soon.
Godrej Appliances (Business Head & Executive Vice-President) Kamal Nandi believes the fresh guidelines that allow e-commerce platforms to operate amidst the lockdown will lower the overall impact on sales.
"Online sales will see significant traction for the time being given that there is a lot of pent-up demand and shops are shut. We are in discussions with key online players to begin rolling out our products as we foresee a deeper integration of offline and online trade in coming times," Nandi added.
Super Plastronics CEO Avneet Singh Marwah, which exclusively sells Thomson smart TVs on Flipkart, is also confident of meeting demand till the end of May.
He said that the brand is also unlikely to face any trouble relating to manufacturing activity as its plants are located in green zones - the industrial belts of Noida and Jammu. "We have adequate stock for May and we will be resuming sales with great offers on Flipkart," Marwah said, adding the TV industry has seen a loss of about Rs. 2,000 crore so far.
Handset makers are also in talks with state and district administrations to ensure there aren't any ground-level difficulties as was seen by e-tailers in the first phase of lockdown.
"We are evaluating all aspects of resuming production and our manufacturing partners are working with authorities - at the centre and state level - in securing relevant permissions keeping in mind the facets of manpower, component availability and transport involved," a Xiaomi spokesperson said in an email response to The New Indian Express.
Kitchen appliances maker Wonderchef believes e-commerce is the only recourse for retailers to stay afloat amid the challenging coronavirus times.
"Our sales had come down to zero and e-commerce opening up will provide some cash flow. There is enough inventory and we are confident that the pent-up demand will result in a surge in sales," said Wonderchef MD Ravi Saxena adding the company has also initiated talks with multiple online partners.
Fashion retailer Myntra is aiming to restart operations while Reliance Retail also plans to scale up its lifestyle app Ajio.com. "Our support team is providing counsel and on-ground support to sellers on our platform to help them resume operations in a few days," said a spokesperson of Flipkart Group.
All these companies, however, are ready for staggered operation as workers are coming in batches ensuring social distancing, frequently sanitising, using masks among other initiatives to contain the virus spread.
Expressing a willingness to commence operations, Alisha Malik, vice-president (marketing and e-commerce) at Metro Shoes said there are still some ambiguities in the MHA guideline on whether warehouses in the red zones will be allowed to operate.
"We have sought clarification from the state government in this regard," she said.
The footwear retailer has its warehouses in Bhiwandi, Maharashtra, which is a coronavirus hotspot. Metro Shoes is also discussing with online partners on how the supply chain can function smoothly and is taking a step-by-step approach to resume operations.
The major impediment will be the fulfilment of the demand surge as labour will take time to come back from their hometown.
"When they return to work, there will also be wage inflation," pointed out Rishav Jain, Senior Director and Consumer & Retail Sector Lead, Alvarez & Marsal.
However, fashion retailers are sceptical if e-commerce deliveries during the extended lockdown will aid overcome the slump as many believe consumers will not be willing to spend on apparels due to its discretionary nature.
Data from e-commerce firms showed there is a healthy pipeline of orders with consumers looking for kitchenware, low-cost electronics like mixer grinder and personal grooming products including trimmers, etc. Summer apparels, AC, laptop and headphone are also on the wishlist.
Meanwhile, the Retailers Association of India (RAI) has urged the government to "strongly consider" allowing all forms of retailers, not just e-commerce players to operate through home delivery during the 19-day lockdown extension.
"This will ensure greater availability of supplies while conforming to the requirement of social distancing. The move will further support the revival of economic activities and open new avenues of job creation in the market," RAI argued.