06 January 2023, Mumbai
Among the reasons for the slowdown are the overall market recession, competition with China and Bangladesh delayed winter season, etc. Every year, manufacturers wait for the winter season for orders, but this year they are worried owing to the low sentiment of buyers.
Facing major competition from industries located in other states, the micro and small units dealing in the garment and textile products in Ludhiana have pinned high hopes on the next Punjab government to equip them with the latest technology by starting new schemes.
Hosiery Town
Ludhiana is known for its hosiery and woolen products worldwide. The products manufactured here are sent to Uttar Pradesh, Jammu and Kashmir, Rajasthan, Madhya Pradesh, and Bihar, among others.
Ludhiana in Punjab accounts for over 90 percent of the total winter wear production in the country. There are around 12,000 units, a majority of them in the micro, small and medium category, which are engaged in the production of winter wear in Ludhiana.
Manufacturers of winter clothing in Ludhiana claim that the warm start to the season this year has left them perplexed with the advent of the winter season. Adding to the woes is weak demand, especially from the stores distributed across the nation, the business is on the verge of losses.
LUDHIANA OFFERS, HOSIERY, WOOLEN GARMENTS, WOOLEN KIDS' SUITS, QUALITY PRODUCTS, FIXED PRICE, FACTORY MANUFACTURER UNITS, AND WARM SUITS.
Shortening season
Ludhiana's hosiery cluster is staring at losses on account of lower offtake of garments. Because of the delayed winter repeat orders are hard to come by and retailers have been left with a heavy stock of winter wear.
The weak demand for clothes for the cold weather has forced the hosiery industry to offer discounts in early December to attract customers at retail counters and clear the stock. Otherwise, big brands in the hosiery sector start offering discounts only in the last week of December or the first week of January.
October, November, and December are the key months for Ludhiana's hosiery sector.
Landscape
Key markets for the hosiery industry are Punjab, Haryana, Delhi, Himachal Pradesh, Uttar Pradesh, Rajasthan, Jammu and Kashmir, Bihar, and some northeastern states. The industry is famous for winter garments like jackets, sweaters, thermals, cardigans, pullovers, innerwear, shawls, etc.
But there has been a very low demand for garments in this season from wholesalers and retailers. They placed orders only once and have not come back for placing orders for a second or third time.
Some manufacturers are offering a ten percent to 20 percent discount on winter wear” Atul Saggar, general secretary of the Apparel Manufacturers Association Ludhiana, said, “The new state government can save garment units by subsidizing the purchase of new machinery and opening a technology upgrade center which can guide the garment units about the latest technologies.
Demand woes
The economy's unpredictability and excessive inflation are the major factors preventing customers from purchasing anything a little more expensive. The marriage season in December also failed to lift demand for winter wear, which came as another setback for the industry.
More money is being spent on vacation and eating out than on new winter clothing, according to Munish Avasthi, MD of Sportking India Ltd.
Industry looking at credible alternatives Given the weather vagaries trade is looking at exploring alternatives to secure its future Garment manufacturers from Ludhiana are planning to shift to Jammu Kashmir.
In view of the incentives provided to set up industries in Jammu Kashmir, they feel the cost of production will be very low as compared to Punjab.
