02 November 2023, Mumbai
The Clothing Manufacturing Association of India (CMAI) recently conducted a survey to predict festive season trends.
Multiple data-points
They collected insights from 166 apparel manufacturers and brands, revealing that 22% expect an uptick, while 78% foresee sales dipping up to 25% compared to the previous year.
The economic slowdown and inflation are the primary culprits for these sales projections, with 30% blaming the economic downturn.
Some believe that lower prices (16%) or better clothing options (12%) might boost sales. Most respondents (67%) favor mid-priced clothing over expensive or low-priced options. Kid's wear (49%) is expected to outperform, followed by women's (36%) and men's wear (12%).
Tier 2 and Tier 3 cities are poised to outshine metros in clothing sales, according to 80% of respondents.
Observations
Rajesh Masand, President of CMAI, noted that the survey reflects the industry's dynamics, highlighting the significance of economic factors and pricing strategies.
Rahul Mehta, Chief Mentor of CMAI, expressed concern about the pervasive pessimism among members but anticipates a post-Diwali market upswing. Sixty percent foresee offline stores performing better during the festive season, while 40% bet on online portals.
The domestic apparel industry is a significant player in India's economy, estimated at Rs. 6.80 lakh crores and growing by 15-20% in FY2023.
