Retailers in the clothing and footwear sectors are expecting high demand in the upcoming months. The sector anticipates a strong second half of FY ’25, according to a Phillip Capital analysis, buoyed by the holiday season, more wedding dates, and indications of increasing consumer mood.
According to the research, total apparel segment consumption stayed steady in Q2 FY ’25, but growth slowed in July and August due to the early end-of-season sale (EOSS) in June, fewer weddings, and excessive rains in several regions of the nation.
Apparel consumption remained steady in Q2 FY ’25, though consumer sentiment improved as the quarter progressed. The footwear sector shared a similar outlook, with October sales and footfalls meeting expectations, continuing into November and December, boosted by the wedding season.
Rural markets outperformed urban areas, fueled by higher disposable incomes from government policies and lower inflation. Value retailers thrived as consumers sought affordable options, while premium retailers faced challenges. However, the premiumization trend continues, with consumers gradually shifting towards organized and branded players.
Both the clothing and footwear sectors have a bright future ahead of them, with retailers expecting robust demand in the upcoming months.
