Page Industries, India’s largest innerwear firm and the operator of Jockey and Speedo stores in India, has reported a significant drop in sales for the June Quarter. The company attributed this decline to the accumulation of excess inventory in the market, leading to unsustainable business practices like heavy discounting and promotional schemes.
According to VS Ganesh, Managing Director of Page Industries, many companies within the innerwear sector are grappling with an alarming inventory surplus, with some holding up to eight to twelve months’ worth of excess stock. This excess inventory has created a domino effect, resulting in aggressive discounting and various intervention strategies in an attempt to clear the unsold products. The consequences of this overstocking are not only affecting individual companies but are also impacting the overall market ecosystem.
The slowdown in the innerwear industry’s athleisure segment has led to a buildup of excess inventory, causing companies like Page Industries and Aditya Birla Fashion & Retail to implement price reduction strategies. While Aditya Birla Fashion & Retail’s managing director, Ashish Dikshit, assures that innerwear is a more consistent and evergreen product, concerns about short-term margin pressures due to aggressive pricing strategies have been voiced by Ramesh Agarwal, director of Rupa & Company.
Despite the challenges faced by the industry, many companies are optimistic about a potential recovery in the coming months. They believe that the current slowdown is transitional and anticipate a rebound in sales, particularly during the festive season.
