Ludhiana’s famed hosiery sector is facing losses due to insufficient demand for winter clothing this season, with several manufacturers reporting a lack of repeat orders and stock returns from dealers in numerous states.
However, bone-chilling cold wave weather conditions in the northern area have provided some comfort, as they expect an increase in demand, which might lead to stock clearing. The Ludhiana hosiery sector, one of the oldest industrial verticals, is well-known for winter apparel such as sweaters, jackets, thermals, cardigans, pullovers, innerwear, and shawls.
Many states, including Uttar Pradesh, West Bengal, Rajasthan, Himachal Pradesh, Delhi, Bihar, and Haryana, are important markets for the hosiery industry.
Since of the prolonged winter, manufacturers began offering discounts to wholesalers in December to push sales,” said Shyam Bansal of Rage, a luxury women’s apparel business, as per reports.
A hosiery products maker stated that a manufacturing unit operates at an average margin of 10 per cent and if it had to provide that much discount to wholesalers, it would be unable to earn anything other than clearing its stocks.
The manufacturer stated that there is fierce rivalry in the industry, and no matter how wonderful a product is, wholesalers demand reductions.
According to industry sources, discounts of up to 20 per cent were first provided at retail counters in December to boost sales. Later, these were increased to 30 per cent.
Chinese-made winter apparel is also having a significant impact on the local hosiery business. “If an item costs us Rs 1,000, a Chinese item is available at Rs 600-700,” added Bansal, emphasizing the challenge presented by the Chinese goods to the Ludhiana hosiery sector.
Navin Sood, another hosiery products maker, stated that many manufacturers in Ludhiana are experiencing a dearth of repeat orders from dealers in states like as Bihar, Odisha, Madhya Pradesh, Rajasthan, and West Bengal
Raja Dhir, head of the Daal Bazaar Merchant Association, stated that several dealers in Uttar Pradesh, Kolkata, and some southern regions returned hosiery products due to low demand for winter apparel.
However, an industry spokesperson said because of extreme cold-wave conditions existing in the northern area, the industry anticipates supplies at retail outlets and industries to be cleared, but it is difficult to predict if it would contribute to profits given the fact that hefty discounts were being given.
