According to a survey conducted by The Clothing Manufacturing Association of India (CMAI), approximately 78% of apparel manufacturers and brands anticipate a decline of up to 25% in sales during this festive season when compared to the previous year. In contrast, only about 22% of those surveyed foresee a potential market improvement in the upcoming festive season.
Out of the respondents, a majority of 60% believed that offline stores would outperform during the Festive Season, whereas 40% were of the opinion that online portals would deliver better results.
The survey, comprising insights from 166 apparel manufacturers and brands, illuminated a range of factors impacting the market.
CMAI Survey about Market Trends:
Speaking about the upcoming festive season, Rajesh Masand, president, CMAI said, “A majority of respondents expect the market to be subdued and that economic factors as well as the pricing strategies continue to be pivotal in shaping sales expectations. However, the industry remains resilient to navigating these challenges.”
Speaking about the results of the survey, Rahul Mehta, chief mentor, CMAI said, “Despite observing some positive sentiments over the past 3 to 4 days, there remains a widespread sense of pessimism among CMAI members. This aligns with the broader slowdown experienced in the domestic garment sector during the last 4 to 5 months.”
Mehta stated that the CMAI foresees a market rebound post-Diwali, taking into account the extended Wedding Season on the horizon.
Factors outside the industry, such as an economic downturn and inflation, were identified as the primary reasons for diminished sales expectations. Approximately 30% of the respondents pointed to a general economic slowdown as the primary factor behind their lower sales expectations compared to the previous year.
Approximately 16% of respondents believe that reducing prices could potentially boost sales, while 12% attribute the expected sales increase to the availability of improved clothing options. Regarding price point performance, when asked, about 67% of the respondents expressed the view that mid-priced clothing would outperform both expensive and low-priced alternatives.
Furthermore, close to 49% of respondents believe that children’s wear will spearhead the sales, followed by 36% pointing to women’s wear and 12% identifying men’s wear as the clothing categories that will excel. Additionally, it’s expected that Tier 2 and Tier 3 cities will outperform the metros in clothing sales, with approximately 80% of respondents showing their support for these smaller cities.
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The domestic apparel industry in India holds significant importance, contributing substantially to the nation’s economy. The Indian apparel market is estimated to be valued at INR 6.80 lakh crores and has experienced a growth rate ranging between 15% to 20% in the fiscal year 2023.
Founded six decades ago, CMAI stands as the representative association of the Indian apparel industry, boasting a membership of over 4,000 individuals and catering to the needs of more than 20,000 retailers. Its diverse membership includes manufacturers, exporters, brands, and ancillary businesses.