Today Underlines speaks to Jean Forrest, MD of Cottonreal.
Have you experienced cancellation of orders from retailers and/or Etailers?
Whilst a number of our customers tried to continue trading during the initial restrictions, when stores were all forced to close on March 23rd we knew we would not be dispatching any further orders or top ups. Obviously it was relativity early in the SS season, and at that point I must admit we were still optimistic that AW orders may still go through. However, whilst the majority of cancellations received relate to SS20 a large number of AW20 order have also been frozen.
This has not just applied to our UK clients but also to all of the overseas clients that we supply whose stores have also been forced to close by their governments. We are optimistic that overseas stores may open again soon as they started their shutdowns earlier than the UK.
The exception to this are our on-line Etailers & Mail Order companies who are continuing to work and indeed place future orders (whilst within government guidelines) and we are still happy to be keeping them up and running with stock and top ups.
If you have not had cancellations or goods have been shipped, have you had to extend your credit terms to those customers who have had to close their frontline business?
This is a difficult one as we have found that pretty much any pending payments to us have been halted. As a company we do not enforce a strict payment terms policy (unless excessively overdue) and whilst we continue to support our loyal clients and will be there 100% for them when this is all over, we as a company also have ongoing costs and overheads which have to be met.
So yes, indirectly we already provide extended credit.
Have you been able to keep in touch with your own team (if they are not on furlough)? Have you any amusing anecdotes about everyone working from home amidst family, kids or animals?
Working from home has its challenges, mostly relating to slow internet connections (although Ben the cat is happy). With our offices in London and Lincolnshire, traveling in between logistically is not easy, but I have been spending one week in Lincolnshire and then a few days in London – Not ideal but it’s keeping the team in touch.
What role does social media play in either keeping touch with staff or consumers? (do you use Skype, Zoom …)
We have been trying to be more active on social media with more frequent posts and making them a little more interesting than just sleep/lounge wear images…It’s also been great to see some of the creative posts our clients are posting. I’m certainly making this my time to improve my “social media” skills.
We did attempt a Zoom conference, and although we were not “hacked” as I have heard some meetings have been, one of the team couldn’t see anything so we gave up and reverted back to WhatsApp.
Have you had to take the heavy decision to cancel orders to your own suppliers?
Having had long term partnerships with our factory and staff we felt it was right to support our teams and to honour all of the orders we have in place. However given the lockdowns and logistic travel restrictions in place we are not sure when we may receive any of our consignments.
How are dealing with developments for upcoming seasons – SS2021 or AW2021? Obviously trade fairs are now postponed to August/September…will you be able to have virtual showrooms with your customers?
Whilst I always thought that the future of trade shows as we know them was maybe in jeopardy (generally due to a lack of support), you do realise during a situation like we find ourselves in just how important direct interaction really is.
The shows organisers have always supported the trade with their extensive marketing and hard work and whilst the technology is there to create virtual showrooms, it does not in any way account for the general feel and touch of fabrics and overall appearance of goods which is so important for a buyer.
We continue to provide all images of current and new collections where required via DropBox Show cases – which is still engaging our clients with our products. I am not overly optimistic that any further shows will take place this year, and as such we will now focus on the forthcoming season (whatever and whenever that is….)
Do you feel well informed and how do you feel the British government has responded to business needs e.g. job retention scheme, business interruption loan, etc..?
Without going into politics, I do feel the support that government has proposed for small businesses has been more than adequate. We also receive detailed information from a great team at the DTI which has proved to be extremely helpful. Whilst we have not applied for any of the bank loans, I do hear that the banks are not being as accommodating when approached as the government had pledged. That said, we have been offered numerous help and assistance from both our bankers and local council should we require it – a gesture which is very much appreciated.
However, despite any financial measures the government may put in place and the longer we are all in lockdown the more impact on the economy this will have. Sadly this will ultimately be catastrophic for businesses of all sizes which haven’t got the backup or resources to survive and the industry will have a very different landscape at the end of this.
Have you had opportunities to talk to professional bodies about your own situation?
No conversations as such – just support, information and advice from bodies such as the DTI, WTIN & DIT all received on-line which have all been extremely useful and help point us in the right direction.
With pause for thought during this crisis, do you envisage substantial changes in the way you run this post-Covid-19?
It certainly highlights the need to be financially sound and have a broad customer base. Although we have a diverse range of customers including a large number of international overseas clients, these too have been equally impacted by this crisis. The businesses that will come through are the ones that are in a sound financial position and are able to adapt to the new environment that we will find ourselves in.
We would like to end on a positive note and say that we all need to Stay Strong – Stay Together & Stay Optimistic – and that we ultimately will beat this. We are also extremely proud having received a request to assist and to have donated a selection of new items from our collection of nightwear to two London hospitals. This was just a small gesture of our appreciation to all of our NHS staff who may have to stay at work unexpectedly overnight – Hopefully a little morale booster!
