CMAI: Covid19 made apparel brands & consumers price conscious

18 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 worst-hit sector is poised to clock 75-80 percent 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 learned 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.

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Last week, CRISIL Ratings estimated that the brick-and-mortar apparel retail sector’s revenue will grow at an average of 20-25 percent year-on-year in FY22, after declining 40 percent year-on-year in FY21 because of Covid-19.

This was an upward revision of their previous estimate of 15-20 percent growth.

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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 percent of the pre-pandemic level adds Anuj Sethi, Senior Director, CRISIL Ratings.

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