Apparel͏͏ companies͏͏ anticipate͏͏ a͏͏ weak͏͏ retail͏͏ market͏͏ during͏͏ the͏͏ festive͏͏ season.͏͏ According͏͏ to͏͏ a͏͏ survey͏͏ by͏͏ the͏͏ apparel͏͏ industry͏͏ body,͏͏ 63%͏͏ of͏͏ respondents͏͏ expect͏͏ clothing͏͏ and͏͏ apparel͏͏ sales͏͏ to͏͏ remain͏͏ the͏͏ same͏͏ or͏͏ decline͏͏ compared͏͏ to͏͏ last͏͏ year,͏͏ with͏͏ 25%͏͏ projecting͏͏ sales͏͏ to͏͏ reach͏͏ only͏͏ 75%͏͏ of͏͏ last͏͏ year’s͏͏ figures.
The͏͏ Clothing͏͏ Manufacturers͏͏ Association͏͏ of͏͏ India͏͏ (CMAI)͏͏ conducted͏͏ the͏͏ survey.
“The͏͏ sluggish͏͏ business͏͏ environment͏͏ over͏͏ the͏͏ past͏͏ six͏͏ months͏͏ makes͏͏ these͏͏ trends͏͏ unsurprising.͏͏ However,͏͏ we͏͏ remain͏͏ hopeful͏͏ for͏͏ festive͏͏ spending͏͏ and͏͏ anticipate͏͏ a͏͏ gradual͏͏ demand͏͏ surge͏͏ with͏͏ the͏͏ upcoming͏͏ wedding͏͏ season͏͏ later͏͏ in͏͏ the͏͏ year,”͏͏ said͏͏ Rajesh͏͏ Masand,͏͏ president͏͏ of͏͏ CMAI.
Consumer͏͏ Spending͏͏ Shifts:
Around͏͏ 35%͏͏ of͏͏ respondents͏͏ have͏͏ lower͏͏ expectations͏͏ due͏͏ to͏͏ a͏͏ shift͏͏ in͏͏ consumer͏͏ spending͏͏ towards͏͏ other͏͏ lifestyle͏͏ areas,͏͏ while͏͏ 24%͏͏ cite͏͏ the͏͏ slowing͏͏ economy͏͏ and͏͏ inflation͏͏ as͏͏ key͏͏ factors.
Continue͏͏ Exploring:͏͏ Organised͏͏ apparel retailers͏͏ to͏͏ clock͏͏ 8-10%͏͏ revenue͏͏ growth͏͏ this͏͏ fiscal͏͏ year
Brand͏͏ Performance͏͏ Expectations:
Only͏͏ 18%͏͏ of͏͏ respondents͏͏ expect͏͏ low-priced͏͏ brands͏͏ to͏͏ perform͏͏ better͏͏ this͏͏ festive͏͏ season,͏͏ while͏͏ 75%͏͏ believe͏͏ mid-priced͏͏ brands͏͏ will͏͏ fare͏͏ better.͏͏ CMAI͏͏ noted͏͏ this͏͏ reflects͏͏ “the͏͏ Indian͏͏ consumer’s͏͏ growing͏͏ maturity,͏͏ with͏͏ an͏͏ increasing͏͏ willingness͏͏ to͏͏ pay͏͏ a͏͏ premium͏͏ for͏͏ quality͏͏ rather͏͏ than͏͏ focusing͏͏ solely͏͏ on͏͏ price.”
Preference͏͏ for͏͏ Offline͏͏ Retail:
The͏͏ survey͏͏ revealed͏͏ a͏͏ 75.5%͏͏ preference͏͏ for͏͏ offline͏͏ retail͏͏ channels,͏͏ with͏͏ 24.5%͏͏ favouring͏͏ online͏͏ retail.
Indian͏͏ wear͏͏ is͏͏ expected͏͏ to͏͏ perform͏͏ well͏͏ according͏͏ to͏͏ 52%͏͏ of͏͏ respondents,͏͏ followed͏͏ by͏͏ casual͏͏ wear,͏͏ while͏͏ formal͏͏ wear͏͏ appears͏͏ to͏͏ be͏͏ out͏͏ of͏͏ favour.
CMAI͏͏ is͏͏ an͏͏ association͏͏ of͏͏ over͏͏ 5,000͏͏ members͏͏ from͏͏ the͏͏ Indian͏͏ apparel͏͏ industry,͏͏ including͏͏ manufacturers,͏͏ exporters,͏͏ brands,͏͏ and͏͏ the͏͏ ancillary͏͏ sector,͏͏ serving͏͏ more͏͏ than͏͏ 35,000͏͏ retailers͏͏ nationwide.
