Demand for apparel products to remain subdued in Q42023: RAI
01 January 2024, Mumbai
Rewind 2023
As against the double-digit growth projection, demand for apparel and lifestyle products is expected to remain subdued in Q4 2023. Retailers have begun offering early discounts to attract shoppers, according to a Retail Association of India report.
Retail sales grew by 7 percent in November 2023, compared to last year's period. However, retailers remain cautious about the demand in the future, says Devarajan Iyer, CEO, of Lifestyle International.
Challenges galore
The lack of peak winter weather has caused a struggle in the fashion retail segment, with demand slowing since January 2023. In March–April 2023, sales growth slowed to 6 percent before slightly increasing to 9 percent in August–September 2023.
Retailers, such as Marks & Spencer and Lifestyle, reported low holiday sales, forcing retailers to reevaluate their store expansion strategies, notes Lalit Agarwal, Chairman, V-Mart.
Pankaj Renjhen, Chief Operating Officer, Anarock, adds that with people prioritizing spending on homes, cars, and experiences, demand for apparel remained low during the quarter.
