India’s apparel industry is expecting stronger sales during the upcoming festive season, with 52% of members of The Clothing Manufacturers Association of India (CMAI) forecasting higher sales compared with last year. Another 30% expect sales to remain at last year’s levels, according to a recent survey conducted among CMAI members.
Fewer than 20% of respondents expect sales to decline during the festive period. The survey attributes the outlook to improving economic conditions, a reasonable monsoon and positive consumer sentiment. Expectations of progress towards resolving two major global conflicts have also contributed to the sentiment among industry members.
Retail orders placed at CMAI’s recently held National Garment Fairs (NGFs) have provided an indication of demand ahead of the festive season.
At the same time, higher raw-material costs continue to affect apparel manufacturers. Around 54% of respondents said they are absorbing increased costs through lower margins, while approximately 35% have raised product prices to offset the impact.
The findings suggest that higher sales may not necessarily translate into stronger profitability, as manufacturers continue to face pressure from input costs.
Indian wear is expected to account for a significant share of festive-season demand. Around 45% of respondents identified salwar suits, churidars and kurtas as the categories expected to perform best. Western casualwear, including T-shirts and denims, is also expected to see increased demand.
Online channels are another area of expected growth. E-commerce currently accounts for around 12% of apparel sales, and respondents expect online purchases to increase during the festive season.
Overall, the survey indicates that apparel demand is likely to remain firm during the festive period, although elevated raw-material costs could continue to constrain manufacturers’ margins.
