Around 30% of respondents that participated in a CMAI survey cited an overall economic slowdown as the main cause behind the sales expectations staying lower than last year
Mumbai: Around 78% of apparel manufacturers/brands expect the sales in this festive season to dip up to 25% as compared to last year’s sales, found a survey by The Clothing Manufacturing Association of India (CMAI). Only around 22% of respondents expected the market to pick up over the upcoming festive season.
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.
The survey, which included insights from 166 apparel manufactures/brands, shed light on various factors influencing the market.
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 said that CMAI anticipates a market upswing after Diwali, considering the extended Wedding Season that lies ahead.
Non-industry factors like economic slowdown and inflation were considered to be the primary factors for lower sales expectations. Around 30% of respondents cited an overall economic slowdown as the main cause behind the sales expectations staying lower than last year.
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 the Metros in clothing sales with around 80% of respondents voting in their favour.
The domestic apparel industry in India is an important sector that plays a vital role in the 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 financial year 2023.
Established six decades ago, CMAI is the representative association of the Indian apparel industry having over 4000 members and serving more than 20,000 retailers. Its membership consists of manufacturers, exporters, brands, and ancillary industry.
