17 March 2022, Mumbai:
Clothing Manufacturers Association of India (CMAI) believes, the pandemic has made both apparel brands and consumers more price conscious even though the badly hit sector is poised to clock 75-80 per cent of pre-pandemic revenues by FY22 on the back of a strong recovery.
Brands are looking at tweaking their design specifications to become more price competitive, says Rahul Mehta, Chief Mentor CMAI. They have also learnt to work with lesser inventory, finance and manpower than before the pandemic, the timelines have become shorter and there is greater pressure to avoid excess stocking, he adds.
Last week, CRISIL Ratings estimated that the brick-and-mortar apparel retail sector’s revenue will grow at an average of 20-25 per cent year-on-year in FY22, after declining 40 per cent year-on-year in FY21 because of Covid-19. This was an upward revision of their previous estimate of 15-20 per cent growth.
The sector was badly hit during the pandemic. However, sharp recovery seen in the second and third quarters this fiscal, and the expected healthy performance in the fourth quarter, is expected to propel revenue to 75-80 per cent of the pre-pandemic level adds AnujSethi, Senior Director, CRISIL Ratings.
