After a season of poor sales over the festival season and winter, apparel retailers in New Delhi are aiming for a demand rebound during the next two quarters. Leading retail authorities have noted that the fall in clothing demand can be linked to a combination of an exceptionally warm December and a less exciting wedding season. The allure of clothing and electronics has also been lessened by a shift in consumer spending towards luxuries like travel and eating out.
The Government’s private final consumption expenditure data showed that clothes and footwear sales fell by 8.9% in the fiscal year 2023, which was a sharp contrast to the 28.6% growth recorded in the previous year. The delayed arrival of winter in December presented another difficulty, causing garment brands to accumulate inventory.
In preparation for a rebound in demand, retailers are modifying their marketing and inventory management plans. Although the industry’s flexibility and fortitude are being put to the test, cautious hope persists that the upcoming quarters could bring about a much-needed increase in consumer spending on apparel.
