Tag: retail

India’s Urban Company revolutionised gig work for women. Then it bled them | Business and Economy

Bengaluru, India — After years of working at a salon in Bengaluru, Shakeela Banu made a major life change in 2018 and joined Urban Company (UC), an app-based home services platform that has more than 52,000 workers across Indian cities, one-third of whom are women.

At first, Banu was happy with the working conditions. Her manager treated her well, she said, and she got plenty of work as a beautician on call. She estimates that she’s worked with 3,000 customers since she joined the company and has turned down many requests from those who would ask for her services privately. It was her way of staying loyal to her employers.

However, things have soured since then.

Last year, the platform rolled out new rules including that workers maintain ratings of 4.7 or higher out of 5 and accept 70 percent of the job leads, with only four cancellations allowed in a month to avoid getting blocked.

Banu was one of many UC workers whose profile was blocked due to “low” ratings.

On its blog, the company said that these measures are meant to raise the operating standards for workers and improve customer experience. (There are also plans afoot for stricter rules under which workers will need to accept at least 80 percent of the jobs and only three cancellations will be allowed.)

If workers miss these criteria, they receive a warning and need to attend either online or offline sessions to retrain in services where they have received poor ratings. If their metrics don’t improve after that, their profiles are blocked. Retraining online is free, but the workers have to pay a fee, ranging between 6,000 rupees and 15,000 rupees (between about $72 and $180), if they have to train at the UC office.

Urban Company relies on a pay-to-work model which asserts that workers are “independent partners” who are being provided with a customer base and professional training they would not otherwise have.

The workers incur multiple costs before they qualify for jobs with UC, including training fees, onboarding fees, product fees, and a monthly subscription fee to get a guaranteed quota of jobs, averaging about 50,000 rupees (about $600). Additionally, for every job, UC also takes a commission fee of up to 25 percent in service charges and taxes. Workers are not compensated for travel costs or vehicle rents.

Urban Company did not respond to Al Jazeera’s request for comments.

Bad reviews, blockings

When UC launched in 2014, workers were attracted to the flexible schedule it offered. In Ghaziabad, Maya Pal, who used to run her own salon, joined UC to get some extra work in 2018.

An Urban Company protest in Gurugram, India in July 2023 [Courtesy of AIGWU]

“Before, we used to get 60 to 70 jobs every month. Now we get job leads once every two days if we are lucky,” said Pal, who has been working with UC for four years. “Then they ask us to maintain our acceptance rates. If you don’t give us jobs, how do we maintain the rate?”

Even after being available on the app for 12 hours, the leads aren’t enough, workers say.

“On the app, we have to keep our location turned on. If we move away from our marked location, they stop sending job leads,” said Pal, adding the system requires her to be housebound all day.

During the lockdown, Pal had to close her salon. Then she met with a couple of accidents and had to cancel UC jobs. Her ID was blocked for four months. With no other income to support her family, Pal, a single mother of two, pulled her kids out of school.

She says that only when UC workers consistently receive five-star reviews on 10 jobs do their ratings improve. It takes one bad review to make it fall again.

UC partnered with the Ministry of Finance’s National Skill Development Corporation (NSDC) to provide training and digital certification to skilled professionals to help them become micro-entrepreneurs. At the same time, workers have been warned against sharing their phone numbers with their clients and all orders have to be via the UC app. Violations can lead to termination or blocking.

“There are seasonal blockings, too,” said Spandan Pratyush, secretary for the All India Gig Workers’ Union (AIGWU)-NCR, a trade union of all app-based workers in India. “You wouldn’t have seen a lot of blocking … when there was a huge demand around the period of [the Hindu festival] Diwali.” But since then, the blockings increased, workers said.

The workers think that the ongoing mass blockings since May 2023 are a step to extract money from new inductees while pruning older workers.

“The new workers won’t question the new policies, new rates and whatever conditions have been applied. But older workers who have been working for years under certain conditions, they would obviously object to changes way more,” Pratyush said.

All is not going well for the new trainees, either. In Gurugram on the outskirts of capital New Delhi, Deepali Khare interviewed with UC and joined as a trainee beautician in late August.

The beautician training at UC costs around 45,000 rupees (about $540), which includes the training fee and money to buy products used during training sessions. Khare agreed to pay this amount in instalments.

The training sessions, which started about 9:30am, were supposed to end by 6pm but would go till 9pm. Trainees also had to bring models to practise salon services on and pay for their food and transport.

The company did not mention “that we need to get 45 models for 45 days of training”, Khare told Al Jazeera.

Then, abruptly, in September, Khare received a message from her trainer that she need not attend more sessions. She was baffled. She had been dropped from training midway without any sort of performance review. Upon repeatedly asking why she’d been dropped, the company said that there were quality issues.

“If there are quality issues, why couldn’t they give us more training? During the interview, they had said that they would increase the training days if you are new to the job. There was no mention of failing us,” she says. “If they had, I would not have spent so much money on this. Isn’t this a type of fraud?”

Five others from her group of 10 had been removed, too.

“I still have the [product] kit I purchased from them. I must have paid about 14,000 rupees [$168] for it,” she said.

unused piles of products
Former UC trainee Deepali Khare’s unused piles of beauty products [Courtesy of Deepali Khare]

The trainees and workers are required to buy the products – a combination of known and in-house brands, used for services in the beauty, repairs and home-cleaning segment – directly from UC. Workers need to scan the barcodes of the products before every job and maintain a usage rate above 70 percent. These products, the workers say, are sold to them at inflated prices.

UC has also increased product prices. For instance, the price of the disposable kits used for the massage services, containing 25 packets of single-use items like bedsheets, pillow covers, towels, candles and napkins, was hiked from 1,440 rupees (about $17) in October to 1,800 rupees (about $22) in November. Massage oils that used to cost roughly 54 rupees now cost 66 rupees.

“It’s fine that they increase the price of the products. But then, shouldn’t they increase the price of the services, too? Only then will we be able to cover the costs,” said one worker who didn’t want to be named.

In its annual business summary for the financial year 2023 (FY23), UC reported that its losses before taxation fell from 5.14 billion rupees (about $62m) in FY22 to 3.08 billion rupees (about $37m) in FY23. Product sales contributed 22.13 percent of the FY23 revenue, where the collection increased from 910 million rupees (about $11m), or 20.77 percent, in FY22 to 1.41 billion rupees (about $17m) in FY23.

The rest of the revenue comes from service sales including the commission UC charges its workers, which, along with product sales and fees, can total up to nearly 40 percent.

Protests

After a spate of ID blockings last year, UC workers protested in Bengaluru, New Delhi and its suburbs, Kolkata and other cities.

In August, when their demands were not met even after the protests, AIGWU filed a complaint with the state labour department against unfair labour practices including the permanent and arbitrary ID blocking of workers.

AIGWU also asked the department to pass a bill to define and identify the employee-employer relationship between them, which would ensure that the workers are entitled to rights, including of collective bargaining, under Indian labour law. The amount of control the company exercises on its workers contradicts its claim that they are independent workers, AIGWU said.

“It’s important to ask what nature of work is considered a ‘gig’. A transparent contract will reflect the degree of reliance these companies have on a worker,” Rajesh Joseph, a labour expert at Azim Premji University in Bengaluru, said. “When you are asking a worker that they should be working a certain way, then the relationship changes beyond gig work.”

After a spate of ID blockings last year, UC workers protested in several cities [Courtesy of AIGWU]

In September, UC replied to AIGWU’s August complaint and said that UC workers are independent contractors and since there is no employer-employee relationship between the workers and UC, Indian labour laws do not apply to them.

India’s new Code on Social Security, 2020, extends social security schemes for gig workers and platform workers, but it has not come into effect yet. So far, there are only some piecemeal local efforts.

In 2021, the United Kingdom’s Supreme Court ruled that Uber drivers must be treated as workers – not independent contractors – who are entitled to benefits like minimum wage and paid leave. Experts believe that this ruling set an important precedent for gig workers globally.

According to government think-tank NITI Aayog, an estimated 7.7 million workers were part of the gig economy in 2020-21, and that number is expected to more than triple to 23.5 million by 2029-30.

It is not clear where platform work falls under Indian labour laws. In most states, according to the Shops and Establishments Act, an “employee” can mean a person paid on a contract, piece rate or commission basis – and the employer has to provide either one month’s previous notice or pay to remove or dismiss an employee.

In Gurugram, the labour department has been conducting since August a conciliation process between UC and the workers with AIGWU.

“At least verbally it has been observed by the labour commissioners in Gurugram and Noida that they are full-time workers,” said Pratyush, who was present at the meetings.

During one such meeting in mid-October, the company representatives had agreed to open the blocked workers’ IDs and return the money to the trainees, such as Khare, who were dropped. But she was never reimbursed, she told Al Jazeera.

“The company representatives didn’t turn up for the next few meetings,” Pratyush told Al Jazeera. In a meeting on November 21 in Gurugram, the company said that they have looked at it on “a case-by-case basis, and they cannot open the IDs or return the money. They did not give a reason,” Pratyush said.

In its annual report (PDF), Fairwork India rated digital labour platforms in India on five principles: fair pay, fair conditions, fair contracts, fair management and fair representation. Urban Company, which had topped the 2022 ratings by scoring seven out of 10, dropped to a score of five out of 10.

In January, the Gurugram labour department moved the case to the industrial tribunal and labour court since no compromise was reached during the conciliation process. While the labour department can determine who is an employee and employer, only courts have the power to enforce this during the claims process.

“But the recommendations made by the conciliation officer under unfair labour practices, such as constantly changing the terms of employment, forcing them to log in for 12 hours or more, no leave policy, and no maternity benefits, will be helpful,” Pratyush said.

Banu did not retrain with Urban Company. But Pal did, and is working with the platform again. Her recent gross monthly earnings have fallen from 50,000 rupees to 15,000 rupees (from $603 to $181) in the initial months of 2018. After deducting product costs and commissions, she barely makes 6,000 ($72) rupees a month.

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‘Better future’: India’s Ayodhya sees business boom with Ram temple launch | Business and Economy News

Ayodhya, India – A 13-kilometre stretch around the controversial Ram temple in the northern Indian city of Ayodhya is lit up with sparkling lights, the walls in the area covered in murals as the city prepares for the January 22 inauguration ceremony by Prime Minister Narendra Modi.

But Rajesh Majhi has no time to enjoy the beauty of the city as he is working overtime to print banners to be used for roadside advertisements for the consecration ceremony. He is also behind on huge orders of wooden carved miniature replicas of the Ram temple, which is currently under construction.

The 38-year-old says his business has increased nearly 30 percent in the past six months. “I have been in the business for the past 12 years, but have never witnessed such a huge demand for banners. There is a surge in the visits of VIPs and religious activities in the city in the past few months,” he told Al Jazeera.

His monthly orders for banners have doubled to 60,000 now from a year ago, and he’s opened a manufacturing unit to make replicas of the Ram temple, a new business line for him, he said.

“We are making 4,000-5,000 pieces every month but the demand is more than the supply. Traders are ready to pay any price and buy them because of that gap between demand and supply,” he said.

Kamal Kaushal, 62, who sells utensils in the city, around seven kilometres from the temple, is also happy with the rapid growth of his business.

“I have been running my shop since 1978 but have never come across such a massive demand for utensils used in religious activities. Earlier, it was even difficult to sell one lakh rupees [$1,206] worth of utensils in a year. But now I have done three lakh rupees [$3,618] sales in the past year. We hope to witness more hikes once the Ram temple opens up for the public.”

The duo are not alone as several thousand traders in the region have been doing brisk business ever since construction for the temple started in 2020, months after the Supreme Court of India handed control of the disputed religious site of 2.77 acres to Hindus. The burst in economic activity is expected to solidify support for Modi among the local traders in the upcoming national elections.

Infrastructure boost

With the temple construction under way, the district with a population of around 2.5 million has seen a series of activities by the central and the state governments, both led by the right-wing Bharatiya Janata Party (BJP), which are leaving no stone unturned to give a grand look to the city and turn it into a big spiritual hub in the country ahead of national elections later this year.

Around 178 projects worth around 305 billion rupees ($3.6bn) have been initiated, including a railway station modelled on the Ram temple, an international airport, a modern township – the area for which has been demarcated – widened roads and decorative street lights.

Tourist influx has increased in Ayodhya [Gurvinder Singh/Al Jazeera]

Traders are ready for the jump in business expected from the increase in tourists.

“We have suffered a lot in the past three decades since the movement for building the Ram temple intensified in the 1980s as there were frequent strikes and shutdowns called by different outfits [over] constructing the temple,” said Sushil Jaiswal, convener of a local business forum that includes 15,000 traders in Ayodhya district.

“Even after the Supreme Court verdict, the development work that began involving road widening and building of sewage system has affected our business for the past three years,” he added. “But now we are hoping for a better future as… it is becoming the business hub of the state due to the temple.”

The government has also granted a Geographical Indication (GI) tag to the besan laddus or gram flour sweets that are offered as prasad to the god.

There are around 500 shops located in just one-kilometre area of the temple selling the gram flour sweet to the devotees.

Shakti Jaiswal, 38, who runs a sweet shop around 400 metres away from the Ram temple, is hopeful that the tag would help him enhance his business.

“The counter sales will definitely improve with the influx of tourists that would see a surge post the consecration ceremony. The GI tag will help us to take our business online and reach new markets and create more income opportunities,” he said.

Vishal Singh, vice chairman of Ayodhya Development Authority (ADA), involved in the development of infrastructure told Al Jazeera that the government aims to create a massive livelihood with the temple.

“The growth in the hospitality sector is witnessing reverse migration as people working in other cities or states are returning here … and 50 new hotels have been sanctioned,” he said.

Tourism to be the biggest benefactor

There’s brisk demand for replicas of the Ram temple [Gurvinder Singh/Al Jazeera]

Tourism is considered to be the most profitable sector from the Ram temple as footfall is expected to rise manifold in the city, especially with a new airport and daily flights to the Indian capital and other places being added at a fast pace.

To cater to the expected influx of tourists the state government sanctioned one billion rupees ($12.05m) in the last financial year, money that is being spent on renovating several temples and other recreational places in the city, said Rajendra Prasad Yadav, deputy director of tourism of the Ayodhya division.

The number of visitors has risen ever since the judgement of the Supreme Court in 2019 and last year around 20 million people visited Ayodhya which is likely to double this year, he added.

There are already 175 small and big hotels in the city, and 500 new guest houses with a  maximum of five rooms have been approved by the state government and these are expected to be a source of income for the locals, Yadav said.

While serving meat or alcohol within a 5km (3 miles) radius of the temple – which is soon expected to be expanded to 15km (9 miles) – is banned, hotels are optimistic that the tourist numbers will make up for the drop in revenue from those lucrative offerings.

In addition, the government is providing a 25 percent subsidy to those constructing hotels, restaurants and recreational places with an aim to attract more tourism, he said.

Arvind Awasthi, pro-vice chancellor at the University of Lucknow, told Al Jazeera that the state economy grew 14.3 percent in the last financial year ending March 2023 and is expected to rise to 19 percent in the current fiscal year partly on the back of the economic boom in Ayodhya.

“The spillover effect of the business boom in Ayodhya would be visible in other parts of the state, too. The wages and economic migration will increase as people will consider the holy city as one of the major places of employment generation,” he said.

Major infrastructure spending, including on a railway station as a replica of the temple, is under way in the city  [Gurvinder Singh/Al Jazeera]

But business is not good for everyone. Large sections of traders have complained that around 1,000 shops in a 5km area of the temple were demolished as the administration undertook a road widening project and the compensation they were paid was much lower than the current real estate prices.

Vaibhav Gupta, 34, a sweet seller, said two of his four sweet shops were demolished as city officials tried to widen the road leading to the temple and his sales have halved because of that loss of location.

“We were paid [1.8 million rupees; $21,735] compensation for both the shops, but the administration is now demanding [two million rupees; $24,149] for allotting us a single shop in another location which is too much for the poor traders like us to afford.”

Dismissing the allegations, Ayodhya Development Authority’s Singh said that proper compensation as per the government norms was paid to the traders whose shops were razed for development works.

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Sanctions threat looms over Bangladesh’s garment sector ahead of elections | Business and Economy News

Dhaka, Bangladesh — Weeks after turbulent wage-hike protests and subsequent factory closures, Bangladesh’s ready-made garment (RMG) industry, a key revenue earner for the nation, is dealing with a new phase of anxiety: “possible” economic sanctions by the country’s Western partners.

The United States and European Union collectively account for more than 80 percent of Bangladesh’s multibillion-dollar apparel sales, and any sanction on the RMG industry would put a severe dent in its already beleaguered economy, said analysts.

The threat of sanctions from the US arose once Dhaka announced January 7 for national elections in what is likely to be another seemingly one-sided vote.

Those concerns were further boosted in early December when a key garment supplier to the US was warned of sanctions in a letter of credit (LC) from a foreign garment buyer.

An LC is issued by financial institutions or similar parties to guarantee payment to sellers of goods and services after appropriate documentations are presented. It essentially helps in avoiding risk by having intermediate buyer and seller banks that ensure proper payment.

According to the LC, a copy of which was obtained by Al Jazeera, the Western buyer stated: “We will not process transactions involving any country, region or party sanctioned by the UN, US, EU, UK. We are not liable for any delay, non-performance or/ disclosure of information for sanction-based causes.”

Should the clause kick in, the garment manufacturer in Bangladesh would likely incur massive losses as the buyer wouldn’t be liable to make any payment for the orders placed with that apparel producer.

Both industry leaders and government officials have dismissed the threat as a “rumour” and “antigovernment” propaganda and say no such economic sanction can be imposed, especially on the garment sector, as it is a fully compliant industry and abides by all the international labour laws.

Faruqe Hassan, President of Bangladesh Garments Manufacturers and Exporters Association (BGMEA) said that the LC came from a particular buyer, and was not a statutory order or notice by “any specific country or countries”.

“From BGMEA, we have already contacted the buyer and the issue was sorted out. It was just a cautionary clause inserted by the bank who prepared the LC on behalf of the buyers,” Hassan told Al Jazeera, “It doesn’t mean that any country is planning to impose some sanctions on our industry.”

Behind the uneasiness

BGMEA President Faruque Hassan said manufacturers are concerned about the potential of economic sanctions [Faisal Mahmud/Al Jazeera]

Hassan however admitted that many factory owners had expressed their concerns in a recent BGMEA meeting over that LC clause and the “ongoing political turmoil of Bangladesh has given birth to all sorts of speculations”.

Bangladesh’s national election is due in less than three weeks but several political unrests have disrupted the country’s business and economy.

Bangladesh Nationalist Party (BNP), the main opposition party, has boycotted the election amidst concerns of severe poll rigging. That sets up the elections as a repeat of one-sided polls held in 2014, in which Sheikh Hasina-led Awami League won 153 out of 300 parliamentary seats uncontested.

BNP says no free and fair election is possible under a partisan government and gave an example of the 2018 poll, in which it took part. Independent observers termed it a severely “rigged” election which saw Awami League securing 288 out of 300 seats, a result that The Washington Post said could only be expected in a country like North Korea.

For the last few months, opposition parties have been staging protests on the streets to press home the demand of installing a neutral election-time caretaker government.

The government has, since late October, used brute force and court cases to suppress the protests. In November alone, more than 10,000 BNP leaders and activists were thrown in jail. None have received bail so far.

Khondokar Golam Moazzem, research director of Bangladeshi think tank Center for Policy Dialogue (CPD) told Al Jazeera that the current political upheaval has obviously played its role in propagating the widespread notion that Bangladesh’s RMG industry might face an economic sanction.

The United States has already taken a tough stance with a new visa policy for Bangladesh in September in which it said it would impose a visa sanction on “individuals undermining the democratic election process in Bangladesh”.

The warning note in the LC also came at a time of severe unrest in the RMG sector over minimum wage hikes in which four workers died.

Bangladesh has witnessed severe unrest over wage issues for garment workers [Faisal Mahmud/Al Jazeera]

It also coincided with the introduction by the US, Bangladesh’s single largest garment buyer, of the Presidential Memorandum on Advancing Worker Empowerment, Rights, and High Labor Standards Globally.

The memorandum is the Biden administration’s effort “to pursue a whole-of-government approach to advancing worker empowerment and organizing, workers’ rights, and labor standards globally”.

While introducing the bill, the US Secretary of State specifically mentioned a firebrand garment labour activist in Bangladesh and said: “We want to be there for people like Kalpona Akter, a Bangladeshi garment worker and activist, who says that she is alive today because the US embassy advocated on her behalf.”

After the new US bill, the Ministry of Commerce in Bangladesh received a letter from the Bangladesh embassy in Washington, DC in which the embassy speculated that “Bangladesh could be among the countries targeted by the new US Memorandum”.

Al Jazeera has seen the letter and Commerce Secretary Tapan Kanti Ghosh acknowledged its receipt and told Al Jazeera that the Bangladesh government had already informed the US about the recent steps they had taken to protect labour rights in Bangladesh. “We are very serious about labour rights and we are the signatory of all the ILO conventions.”

How serious are the sanction concerns?

Labour rights activist Kalpona Akter says anger is still bubbling in the sector [Faisal Mahmud/Al Jazeera]

Germany-based Bangladeshi financial analyst Zia Hassan told Al Jazeera that the prospect of US sanctions on Bangladesh’s garment industry cannot be ruled out.

“Historical patterns indicate wide visa sanctions are likely in retaliation for suspected election manipulation – a typical American response to alleged voting fraud globally,” he said adding that while the US doesn’t typically impose economic sanctions on grounds of a country’s politics alone, the possible garment trade sanction could hinge on issues of workers’ rights.

“Denial of a fair bargain in wages negotiations, labour violations through threats, imprisonment or even murder of vocal labour advocates may see the US act on its warnings to sanction labour abuse,” he said.

Labour rights activist Akter told Al Jazeera that even though the workers were back at work after the revision of the minimum wage hike, their demands had not been met and the anger over injustice to the workers is still bubbling in the sector.

“Hundreds of our workers were thrown in jail for taking part in the protests and they are not given bail as of now. The hike that was given is not at all sufficient to fight the rising inflations. So the industry’s claim that the workers’ rights are protected is not true,” she said.

“However, we obviously don’t want any sanction on this industry. It will be devastating not only for our workers but also for our economy,” she added.

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Smell that: The rise of India’s ittar industry | Business and Economy

Kannauj, India — Gopal Kumar pulled apart the bulb of a flower and pointed to where the roots of the petals had turned a little black inside. This is when the marigolds smell the best and are ready for picking, he said. He picked a pink rose next and sniffed. “You can only find this smell in Kannauj,” he said.

Kumar has been growing flowers outside Kannauj – a sleepy town nestled on the fertile plains of the Ganges in northern India – for 50 years. His flowers are used in the making of ittars, natural perfumes produced by distilling flowers, herbs, plants or spices over a base oil, which takes on the scent of the raw material.

Once a sophisticated kingdom in northern India, Kannauj is famed for its production of ittars using an ancient method called deg-bhakpa. This is a slow, laborious process of hydrodistillation devoid of all modern equipment that has survived in hundreds of small-scale distilleries across Kannauj and in surrounding cities.

Despite a long heritage of fragrance and scent, economic liberalisation of the late 1980s led to a period of decline in India’s ittar industry as cheap, alcohol-based perfumes were introduced from the West. Until the 1990s, there were 700 distilleries in Kannauj, but their numbers dropped to 150 to 200 by the mid-2000s. Trying to compete on price, some manufacturers started using alcohol as the base rather than more expensive sandalwood oil, degrading the quality and purity of the products.

Post-liberalisation, rather than selling directly to consumers, the vast majority of ittars and essential oils produced in India were exported to other businesses – either as an input into perfumery and cosmetic industries in the West or to the tobacco industry. Rosewater is an ingredient in chewing tobacco.

But in the past few years, several young, predominantly female Indian entrepreneurs have spotted a gap in the market between these indigenous artisanal skills and India’s thriving consumer culture, and a new set of homegrown brands has emerged.

A new wave of fragrance

Boond Fragrances is one such company, established in May 2021 during the pandemic by a sister and brother, Krati and Varun Tandon, to help preserve and raise awareness of the perfume-making traditions of Kannuaj and to support local artisans.

“Our father was a perfume trader and at-home perfumer,” Krati Tandon explained at her family home in Kannuaj. ”We grew up around perfumers and perfumeries in Kannauj, and you really absorb what’s happening. But we also saw over the years how some perfumeries started shutting down, and some are worried about their futures.”

The duo wanted to make ittars accessible. “The idea was really for us to bring it to customers – people like us who, if we knew something like this existed, would appreciate it,” Krati said.

Divrina Dhingra, author of The Perfume Project: Journeys Through Indian Fragrance, agrees. “Ittars have a marketing problem actually. In many ways they are stuck in the past,” she said. “But it is also an awareness problem. I don’t know if many people know this industry still exists, the way in which it exists, what it does, what is actually available.”

Gopal Kumar grows flowers in Kannauj that are used to make ittars [Eileen McDougall/Al Jazeera]

The initial response to Boond, Krati said, has been overwhelming with more than 10,000 orders dispatched in the 12 months up to October, a sizeable number for the young business.

Sales rise in winter, the Indian wedding season and the time when Christmas orders come from abroad. The company said it expects sales to double in the next two years but declined to share its revenue numbers.

“Recently, people have again started realising what synthetic perfume is and what real perfume is,” Krati said. “Particularly post-COVID, there has been a transformation back towards the real thing.”

As per market research firm Technavio, the Indian perfumery industry will increase by about 15 percent compounded annually for the next five years. While market trends are currently dominated by trade between businesses, the number of Indian firms selling their own fragrances directly to consumers is increasing.

Indian beauty writer Aparna Gupta said there’s been “a discernible shift, a renaissance if you will, in the domestic market’s attitude towards these traditional fragrances”, which are predominantly marketed on Instagram, and demand for them has gained “considerable momentum”.

She credited brands like Boond that are concentrating on traditional, time-tested ittar scents for playing “a pivotal role” in this resurgence. “They are not just selling ittars; they are reintroducing a forgotten art form to a generation that is eager to reconnect with its heritage,” she said.

Then there are other new brands like Kastoor and Naso Profumi that are targeting “younger consumers by blending traditional elements with modern nuances” – for instance, Kastoor’s Mahal with its unique blend of patchouli and lotus, Gupta said.

A tradition of scent

The flowers used used to make ittar are put in water and sealed inside a large copper vat called a deg [Eileen McDougall/Al Jazeera]

It is unclear exactly how long ittars and essential oils – made when vapours of ingredients are extracted but no base oil is used – have been produced through hydrodistillation in India. However, recently distillation stills excavated from the cities of the Indus Valley indicate a culture of scent in some form dating back to about 3,000 BC.

Around Kannuaj, many locals attribute the discovery of ittars to the Mughal queen Nur Jahan, who lived in the 16th and 17th centuries CE. However, Sanskrit texts indicate that the area was already a centre of fragrance before Mughal times. Historians believe the practice was invigorated with new ingredients and distillation methods further developed by the Mughal court.

Production is highly seasonal, and February in Kannuaj is the season of Damask rose. The warming winter sun was high in the sky by the time a motorbike arrived at the distillery of Prem and Company, a jute sack tied to its rear. Dinesh, the distiller, immediately weighed, inspected and emptied the dusky pink flowers into water inside a large copper vat called a deg.

Within minutes, the rim of the deg has been sealed with a metal lid and an airtight layer of water and clay, and a bamboo pipe has been connected from the deg to a second, smaller vessel, the bhakpa, which sits in a concrete sink of water.

Each deg is fixed over a furnace fired with wood or dung, and the distilled vapours pass through the pipes, collecting and condensing in the bhakpa. This bhakpa holds the base oil, which over time is imbued with the scent of the distilled material.

Boond Fragrances use local artisans, such as Dinesh, to distil both new scents and more traditional favourites, including Mitti, the smell of fresh rain, and Khus, known for its cooling notes. Just a dab suffices with 6ml (0.2oz) selling for $20.

A bamboo pipe connects the deg to the bhakpa, which sits in a concrete sink of water and holds the base oil that gets imbued with the scent [Eileen McDougall/Al Jazeera]

The modern ittar

Kastoor’s founder, Esha Tiwari, wants to change existing perceptions. “Ittars are considered heavy,” she said. “In the earlier times, the ittars were so distinct. They were used by kings and queens as a mode of announcement. But I don’t want to drag you to the 14th century. I will bring this art form to your 21st century.”

Kastoor was set up in 2021. During research and development, 30-year-old Tiwari, who has a background in marketing, ran workshops to facilitate knowledge exchange between ittar artisans and modern perfume experts. The result was a set of seven “modern ittars”, in which trusted ingredients are combined in new, unique proportions with 8ml (0.3oz) selling for $22 to $36. The target market is middle-class, urban consumers looking for a completely natural perfume.

Growth has been rapid. Kastoor has another collection of ittars in the pipeline, and the number of artisans it employs has increased from three initially to 12 to 15 families across Kannauj, Hyderabad and Uttarakhand.

Tiwari found the younger generations of artisanal families were leaving the industry due to lack of prospects. “They didn’t see the demand,” Tiwari said. “That is where we came in. This is not a one-time hike we are giving to their business. It is a constant change in their livelihoods.”

According to Tiwari, Kastoor’s turnover is expected to rise from $120,000 and increase by 5 to 6 times over the next two to three years.

Made in India

The flowers used to make ittars are sold by weight [Eileen McDougall/Al Jazeera]

In addition to the domestic market, these new brands are also exporting across the globe – to Europe, the United States, Japan, Australia and the Middle East. The absence of alcohol makes ittars non-haram and suitable for the religious purposes of both Hindus and Muslims.

The growing interest in sustainability and organic products worldwide is also bringing these producers new clients.

“In the beauty industry, there has been this entire movement towards natural and what’s local, and so in that sense, ittars fit in really nicely,” Dhingra said.

International perfumer Yosh Han said that globally, there is an “increasing desire to decolonise scent” and an “interest in POC [people of colour] brands” because of which some of these new Indian firms are getting interest from abroad.

Back in Kannauj, generations of knowledge and experience mean the local artisans are perfectly positioned to exploit and adjust to these new trends while promoting Indian products.

The name Kastoor comes from the word kasturi, which is also known as musk, a scent of a deer’s navel. According to folklore, the deer was enchanted by this scent and searched for it, not understanding that it was coming from itself, Tiwari explained.

“So we have used it as a metaphor,” she smiled. “We are still frantically looking outside, not realising that we are the creators of the world’s most magnanimous scents.”

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As retailer REI’s troubles with employees continue, consumers back off | Labour Rights News

Claire Chang, a visual merchandiser at sports goods retailer REI’s flagship location in New York City, was drawn to the company because of her then-blossoming love of the outdoors.

After working in an office setting, she said she looked for something a little less stressful. That’s what brought her to REI where she has now worked for six years.

The company, considered to be a progressive beacon in corporate America known for its support of sustainability and Indigenous rights, among other issues, aligned with her interests and values. However, starting in October 2020, Chang says that began to change for her.

At the time, Chang and her colleagues pushed the company for increased health and safety protection amid the COVID-19 pandemic. Because of this, she was part of the first store to vote to unionise.

She felt that the Washington state-based cooperative retailer, formally known as Recreational Equipment Inc, has dragged its feet on union negotiations since then. Chang says they are still fighting for their first union contract, and negotiations started in June 2022.

That began a long and drawn-out battle between her colleagues and the company – a fight that is anything but over, and in early November, the Retail, Wholesale and Department Store Union (RWDSU) filed a complaint on behalf of the workers with the National Labor Relations Board.

The complaint alleges the sporting goods cooperative took actions that RWDSU referred to as “emotional manipulation and retaliatory actions against workers, such as firings, changes to work schedules and disciplinary practices”.

Banking on REI’s reputation as a progressive company, Chang says she hoped they would operate in good faith on union negotiations, but that hasn’t been her experience.

“In reality, they [REI] have been fighting us every step of the way from the beginning,” Chang told Al Jazeera.

Chang says she saw surveillance tactics used in her store and alleges that the company brought in senior executives to talk to them.

Last month there were worker walkouts at locations in Minnesota, Massachusetts and Illinois.

That was in response to what the RWDSU said was the “retailer’s decision to unilaterally restructure jobs and working conditions in all of its stores”.

In mid-October, the company eliminated 275 jobs.

Meanwhile, REI changed law firms amid the negotiations, which she says essentially started the process all over again, while the 85-year-old company reported a record $3.85bn in sales in 2022.

In an investor release, the company said that “in 2022, REI put an additional $50 million toward pay raises for hourly employees and delivered another $92 million toward employee retirement and bonuses”.

However, Chang says that was not her experience. She alleges that the company withheld those raises from her location amid union negotiations. REI did not respond to Al Jazeera’s request to confirm the validity of these claims.

Claire Chang, an REI employee, says the retailer has dragged its feet on a union contract [Photo courtesy of Retail, Wholesale and Department Store Union]

‘Impact brand loyalty’

From a sales perspective, this year could be much different for the retailer – especially during this quarter, the holiday shopping season.

Thanks to a combination of more public pressure from the company’s already hyper-aware and socially conscious customer base, experts believe this could have an impact on holiday shopping.

“REI has a strong brand image associated with outdoor enthusiasts and a commitment to sustainability. If consumers perceive that the company is not living up to its values in terms of fair treatment of workers, it could erode trust and impact brand loyalty. This might prompt some consumers to reconsider shopping at REI during the holiday season,” said Linda Simpson, professor of financial literacy at Eastern Illinois University.

Chris Brinlee Jr is one of those consumers. Brinlee, who works in the outdoor industry, called out the sporting goods retailer on social media. On the company’s “cyberweek sale” Instagram  post, he wrote, “I’d rather not spend any money at REI, ever, than to support a company that’s actively union busting.”

Brinlee Jr has more than 36,000 followers.

“One of the few ways as a consumer we can organise is choosing how and where we spend our money,” Brinlee told Al Jazeera.

“They are clearly acting against the interest of their employees,” he added.

“By going against the union, REI could be seen by its core consumer segments as going against its basic brand identity. Consumers are known to punish brands for transgressions,” Aparna Labroo, Professor of Marketing at Northwestern University’s Kellogg School of Business, told Al Jazeera.

That is exactly how Brinlee Jr feels. He shopped there easily once a month until he learned about the union-busting allegations at REI, and then he stopped. He says he’d consider returning when the company starts operating in good faith with its workers.

“The impact on consumer sentiment and shopping habits during the holiday season will depend on how the public perceives the union fight, how REI responds to the situation, and the values consumers prioritise when making purchasing decisions,” Simpson said.

Brinlee Jr’s position is far from isolated. Alex Bartolo, a wildlife biologist based in Long Beach, California, is among the other consumers that Al Jazeera spoke to who all say they are limiting or outright boycotting the store. Bartolo also has an REI credit card which he says he intends to cancel.

“I think if REI supported what their employees wanted, operated in good faith negotiations and stopped union busting, I would reconsider my opinion,” Bartolo told Al Jazeera.

REI did not respond to a request for comment.

Slowing economy

Workers across sectors took to picket lines to demand better work conditions [File: Frederic J Brown/AFP]

The confrontations at REI come at a time of an increase in the popularity of unions among ordinary Americans.

According to a Gallup poll in late August, 67 percent of Americans approved of unions. That’s the highest since the 1960s. Workers across sectors – ranging from Starbucks baristas to nurses at Kaiser Permanente healthcare facilities – took to the picket line this year to demand better working conditions.

Chang says she fully expects walkouts throughout the holiday season.

This comes amid a tough moment for retailers broadly because of high-interest rates and a slowing economy, which may push consumers to spend less.

According to a survey from PYMNTS, 77 percent of Americans plan to spend less this holiday season than in years past because of heightened interest rates. Moody’s, too, forecasts modest growth for the retail sector at a 1-3 percent bump – compared with 5.1 percent last year and 14 percent the year prior.

That’s a result of a downturn in spending, and an increase in the number of Americans living paycheck to paycheck. According to PYMNTS, that is 60 percent of Americans.

Labroo argues that sentiment helps the REI union’s momentum.

“People are struggling for liquidity – and when they’re struggling, they also become more acutely aware about how others may be struggling,” Labroo said.

For Chang, that translates into more support from the shopping public as she and her colleagues push for a seat at the table.

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ESSX Is Bringing About a New Era of Independent NYC Retail

Style Points is a weekly column about how fashion intersects with the wider world.

So much for that old stereotype about New Yorkers only wearing black. Laura Baker tells me that her fashion buyer friends from other cities have been marveling that “New York is like a bag of Skittles. People are wearing color here.” Baker adds, “That’s what we like. We bought a lot of color.”

“We” refers to the retail destination ESSX, soft opening on Thursday. When I visited last week, Baker, the store’s co-founder and retail director, and her team were putting the finishing touches on the 7,000-square-foot Leong and Leong-designed interior. “Everyone kept saying, ‘We can’t wait to see it.’” she tells me of the still-slightly-raw space. “And we kept saying, ‘Well, us too.’ Two weeks ago, our project manager, Darren, was like, ‘It’s going to open. It’s going to open.’ I’m like, ‘Are you sure?’ There’s plaster, wires, everything, but nope, it’s here. It’s all happening.”

A look at the store’s interior.

Courtesy of Trey Crews

On the Lower East Side’s bustling Essex Street, the store looks out onto a liquor store and a vape shop. A sign for “New York Hardcore Tattoos” can be seen from the corner. Inside, conversely, is a calm, spaceship-like space, a UFO in the concrete jungle, dotted with ottomans from Darren Romanelli that are made from upcycled jeans and T-shirts. Baker says the team wanted the store to reflect “what we want to buy, what the kids in the neighborhood are wearing, versus—there’s nothing wrong with them, but big brand names that are highly promoted. We wanted to bring back a real discoverability aspect.”

We want to see New York win.”

Together, we reminisce about the lost days of New York independent retail: befriending that sales associate at Barneys who would clue you in to the right up-and-coming labels, or stumbling across a new designer in Opening Ceremony in a buzzed post-brunch haze. Further back in time is Charivari, where Marc Jacobs once cut his teeth as a stock boy. Those kinds of places have become thin on the ground, thanks to the pandemic, economic uncertainty, and the dominance of e-commerce. But if anyone can make brick-and-mortar great again, it’s the team behind ESSX: Baker and co-founders Yoel Zagelbaum and Abe Pines, along with style director Lauren Ferreira, who has worked at Kith and as a wardrobe assistant to Drake.

Charivari Boutique owner Selma Weiser with her son Jon and daughter Barbara.

New York Daily News Archive

When Baker told people about the new project, she says, she heard a lot of sentiments like, “‘I can’t believe you’re opening retail. It’s so scary. You’re in for it. Say goodbye to the rest of your life. Or ‘If it’s not experiential, then it’s not worth doing.’ Or ‘How are you redefining retail?’ And the thing is, what does that even mean? I see headlines all the time about experiential retail. Do you want a circus tent in here? Do you want acrobats coming from the ceiling?”

Ultimately, she says, “I think experiential is person to person. People have forgotten how to interface and have a conversation.” She wants a trip to the store to feel “more like a hangout: ‘Hey, let’s get to know the brand.’ If they find something amazing, I mean, we hope they walk away with something, but it really is about learning.”

A look from London label Ahluwalia.

John Phillips/BFC

So, to recap: no circus tents or VR wizardry are in evidence, but what ESSX will offer is fashion, and lots of it. Younger customers “have money, they have resources, they’re hyper-intelligent, they have the internet at their fingertips, they geek out on stuff,” she says. Baker has been working with emerging brands for 15 years through her agency PBLC TRDE, and she eagerly enumerates the store’s eclectic buy. ESSX will be the only store in New York to carry Berlin designer Ottolinger; other labels on tap include “hometown hero” Winnie, Ahulwalia, 4S Designs, Wales Bonner, and Drake favorite Glass Cypress, alongside heavy hitters Comme des Garçons and Jil Sander. The offerings skew look-at-me; Baker disdains the current moment of minimalism and quiet luxury. “We hope our customer spends their money at Uniqlo on the basics, versus getting those here,” she says. “We have a very niche audience, but we are confident that they are going to support the store and everything that’s in here, and also, tell their friends.” There’s a particular emphasis on repping local talent because, Baker believes, “New York stores just don’t support New York brands.” (Those who can’t make the trip to NYC, never fear; there will also be an e-commerce arm to the business.)

A look from Wales Bonner.

Victor Virgile

Vintage is sprinkled throughout; Baker goes through a rack picking out a Deee-Lite T-shirt, then a Madonna shirt that references HBO, “so it’s real vintage.” A ring of all-black band tees, sporting names like Metallica and Destiny’s Child, anchors the space. They came from a mysterious figure only identified as Mr X, who she describes as “a very legit vintage dealer. He works with a huge celebrity clientele, so he’s constantly buying and trading with different celebrity collectors. He’ll go right into their closets. People,” including celebrity stylists, “have been seeing it on our personal Instagrams and some are spoken for already.”

Taking me through a “secret passage” to the mirrored VIP section, Baker gestures to Ferreira, who’s wearing a brightly colored Saint Laurent soccer jersey. It was her idea to create this style studio, if, say, a celebrity is in town and looking for a personal shopping session. Also in the works: a rental studio that will cater to stylists and editors.

A campaign image that features the store’s starting front-of-house team.

Courtesy of Trey Crews

The store décor is meant to reflect the neighborhood around it. ESSX is working with NewCo, the design and creative agency founded by Rob Cristofaro, who also founded LES staple Alife. “They were the first ones to work with [A$AP] Rocky, the first ones to work with Drake. That was a community playground for so many people, but also the birth of their brand and the birth of real sneaker culture. So it was important to work with someone who really had ties to the community,” Baker says. Local florist Joy Flowers will provide arrangements for the space, while 78-year-old artist and neighborhood standby Clayton Patterson, who has documented the Lower East Side since the ’70s, will get a retrospective in the store timed to New York Fashion Week. A partnership with the Henry Street settlement will see the store train local youth in all things fashion and retail under one of its team leaders. “Because we’re all from here, we want to give back to the community,” Baker explains. “We want to see New York win.”

Just as stores like Fiorucci and Dapper Dan once served as bustling community spaces, ESSX has designs on becoming a hub for creative types. For the store’s official opening in September during fashion week, “all these designers are coming in, from Spain, Japan, Korea…and that’s where the magic happens. That’s when people start collaborating and and making deals. I’m not saying the store’s going to do all that,” she adds. “But hopefully we’re a step in the right direction.”

ELLE Fashion Features Director

Véronique Hyland is ELLE’s Fashion Features Director and the author of the book Dress Code, which was selected as one of The New Yorker’s Best Books of the Year. Her writing has previously appeared in The New York Times Magazine, The New Yorker, W, New York magazine, Harper’s Bazaar, and Condé Nast Traveler. 

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Delhi LG Permits 55 More E-Commerce, Retail Outlets to Operate Round-the-Clock

Delhi LG VK Saxena has approved the operation of 55 more e-commerce and retail outlets round-the-clock in the national capital, months after he gave a nod to over 300 establishments to operate 24×7, Raj Niwas officials said on Monday.

The proposal, given by the Labour Department and endorsed by Chief Minister Arvind Kejriwal, was made to exempt another 55 establishments from Sections 14, 15 and 16 of the Delhi Shops and Establishments Act, 1954.

These 55 outlets situated at various locations in Delhi include e-commerce, retail garments and accessories outlets.

“Taking grave exception to the delays ranging up to seven years in disposing of applications for exemption by the Labour Department, the LG in October last year noted on file that the basic purpose of according exemptions under Section 14, 15 and 16 of the Delhi Shops & Establishment Act, 1954 is to enable the various establishments to carry on with their businesses on a 24×7 basis,” a Raj Niwas official said.

Their round-the-clock functioning will facilitate employment generation and promote a positive business environment for future investment in the national capital.

The LG had flagged the “unprofessional attitude and lack of due diligence” on the part of the Labour Department on the subject matter and underlined that some pick-and-choose policy has been adopted by the department in processing such applications, which could be indicative of corrupt practices.

Saxena noted the inordinate delay in the processing of such routine applications also negatively affects the confidence/sentiments of the business community at large.

The LG has also directed the department to dispose of such applications within a prescribed timeline so that a conducive and investor-friendly business environment, promoting economic growth, can be created and positive confidence can be instilled in the business community at large.

In order to ensure transparent and effective monitoring, an online system has been developed for the receipt of applications for exemption under sections 14, 15 and 16 of the Delhi Shops and Establishment Act, 1954.

The Raj Niwas official informed that the applications are only accepted through online mode. 

Smartphone companies have launched many compelling devices over the first quarter of 2023. What are some of the best phones launched in 2023 you can buy today? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
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US companies dictate minimum prices on goods to retailers, shoppers left with fewer discounts

Shoppers will find fewer discounts on everything from toys to tortillas as companies increasingly set minimum prices on their goods to maintain profits and limit price cutting by retailers like Walmart and Amazon.

For many years, manufacturers set the lowest price at which retailers could advertise certain big-ticket items like TVs. They wanted to stop shoppers who scoped out an item on the showroom floor from going online to find it at a lower price.

But with inflation hovering at 8%, shoppers who have gotten into the habit of buying smaller-ticket items online during the pandemic will have a hard time finding bargains.

“We’re seeing categories adopt (these floors) that never had, like food and beverage,” said Jack Gale, an account executive at PriceSpider, a platform which gives control of the customer journey back to brands.

While legal in most of the United States, these policies are illegal in many countries, including across Europe in most cases.

Companies such as Colgate-Palmolive have in recent months used minimum advertised price policies on products like its Optic White Pro Series toothpaste on Amazon, a person familiar with the matter told Reuters.

Many consumer product categories, including Beauty and Personal Care, have seen a significant decline in discounts in 2022.
REUTERS

Other companies like Hasbro and Mr. Tortilla have managed to set a range for retailers to sell their products.

Hasbro requires retailers to keep prices for Monopoly, Twister, Chutes & Ladders and 21 other games and toys above its range of $6.99 to $33.99, unless it’s the holiday shopping season, according to a company memo seen by Reuters. The diet-friendly tortilla maker Mr. Tortilla also decided to set a minimum price level for Walmart and Amazon as it expanded sales. 

In its efforts to offer competitive prices as compared to rivals like Walmart, Amazon uses its position to compel sellers to sell at prices locked by the e-commerce giant. 

In a lawsuit filed by California against Amazon, suppliers argue that they have to agree to the rules set by the company which leads to brands implementing minimum advertised price policies. 

Agreements dictating the for-sale price between retailer and manufacturer are not legal in some states including California and Maryland.

“Amazon routinely abuses its monopoly power to coerce sellers and suppliers, preventing them from offering cheaper prices elsewhere,” said U.S. Representative David Cicilline, who is working on proposed antitrust legislation aimed at bringing down prices. 

Amazon does not restrict sellers from offering lower prices elsewhere, the company said.   

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