03 November 2022, Mumbai:
Winter wear manufacturers in Ludhiana have been stumped by this year’s warm start to the season.
The industry is staring at losses due to lackluster demand, especially from retailers spread across the country. Moreover, 20 percent of last year’s inventory is still with the industry.
October generally is a hectic time for the city’s winter wear manufacturers when a significant percentage of retailers lift their orders from the manufacturers or wholesalers. However this year the industry is staring at losses due to a significant drop in the off-take of winter wear orders.
Economic uncertainty and high inflation are considered to be the main reasons keeping customers away from anything which is priced a little higher. Over the last few years, people have built their capacity, but utilization is not optimum because of the slowdown in demand. Brands catering to the middle class have been hit. Online is making a killing with portals offering huge discounts to customers.
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. Winter wear comprises basic sweaters, hoodies, sweatshirts, jackets, shawls, cardigans, and trousers.
