India’s largest apparel trade show – The 67th National Garment Fair is being organised by the Clothing Manufacturers Association of India (CMAI) from July 16 to 19, 2018 at the Bombay Exhibition Centre, Goregaon. The fair will be inaugurated by Rahul Mehta, President, CMAI, who is also the ex-chairman of the International Apparel Federation (IAF). The B2B fair will be spread over approx 650,000 sq. ft. and will be attended by 986 exhibitors displaying 1,087 leading brands in menswear, women’s wear, kids wear and accessories. CMAI will also publish the ‘Show Directory’, popularly known as the Fair Guide.
Domestic apparel market growth
Mehta points out domestic apparel market has grown at a CAGR of 10 per cent since 2005 and is estimated to worth $67 billion in 2017. The market, due to the presence of strong fundamentals, is expected to grow at CAGR of 11-12 per cent and reach about $160 billion by 2025. The segment is mainly dominated by the ready-to-wear category which makes up 84 per cent of the total market, amounting to $56 billion, growing at a CAGR of 10-11 per cent.
Meanwhile, the ready-to-stitch segment is also gaining momentum as men who earlier bought premium or luxury readymade clothing brands are now opting for a shirt or a trouser that fits them perfectly. The ready-to-stitch market, is currently estimated at $11 billion and expected to grow at a CAGR of 7 per cent and reach about $20 billion in 2025.
Declining exports a bug bear
Premal Udani, Chairman, Board of Trustees, CMAI observes apparel exports are declining since October 2017. The introduction of GST has resulted in non-refund of several embedded taxes. Consequently apparel exports for the financial year 2017-18, has declined 4 per cent to $16.7 billion. This downturn is continuing in FY 2018-19 with a month on month decline of 10 per cent. To counter this, the government has assured embedded taxes will be refunded through the drawback route.