Domestic Apparel Festive Season Sales to See Degrowth: CMAI Survey
03 November 2023: The Clothing Manufacturing Association of India (CMAI) recently conducted a comprehensive survey to gauge trends in upcoming festive season. The survey, which included insights from 166 apparel manufactures/brands, shed light on various factors influencing the market. While around 22% of respondents expected market to pick up over upcoming festive season, around 78% expect sales in this festive season to dip upto 25% as compared to last year’s sales.
Around 30% of respondents cited an overall economic slowdown as the main cause behind the sales expectations staying lower than last year. On the other side, around 16% of respondents feel that lower pricing might help the sales numbers to grow and 12% cited better options in clothes as the expected driving force behind increasing sales. When asked about the price point performance, around 67% of respondents felt that mid-price range clothing would do better than expensive clothes or low-priced clothes.
Further, nearly 49% of respondents feel that kid’s wear will lead the way in sales. This was followed by 36% citing women’s wear and 12% men’s wear as the clothing category that will perform better. Also, Tier 2 and Tier 3 cities are expected to outshine Metros in clothing sales with around 80% of respondents voting in their favour.
Rajesh Masand, President, Clothing Manufacturers Association of India (CMAI) said, “Survey findings shed light on the current dynamics of apparel industry, as we eagerly anticipate upcoming festive season. A majority of respondents expect market to be subdued and that economic factors as well as the pricing strategies continue to be pivotal in shaping sales expectations.”
Speaking about the results of the survey, Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI), “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 broader slowdown experienced in domestic garment sector during the last 4 to 5 months. Nevertheless, we anticipate a market upswing after Diwali, considering the extended Wedding Season that lies ahead. As many as 60% of the respondents felt offline stores will do better during the Festive Season whilst 40% felt Online portals will perform better.”
Domestic apparel industry in India is an important sector that plays a vital role in country’s economy. The size of the Indian apparel market is estimated to be Rs.6.80 lakh crores and has grown by between 15-20% in FY2023.
www.cmai.in
