CMAI (Clothing Manufacturers Association of India) conducted its annual survey of members to get a feel of what to expect from the retail industry before the festive season, and overall sentiments continue to remain weak.
Notably, up to 63 per cent of the participants anticipate either unchanged or decreased sales of apparel and clothing in comparison to the previous year. Of them, almost 25 per cent predict that sales would be as low as 75 per cent of what they were the year before.
Although there were many different reasons for such low expectations, 35 per cent of the respondents said that the largest factor influencing the low sentiments was the noticeable shift in the larger wallet share of consumer spending going towards other avenues of lifestyle. A sizable proportion of respondents—24 per cent—said that the two biggest difficulties facing them right now are inflation and a faltering economy.
Menswear appears to have been the most negatively impacted apparel category, with 75 per cent of respondents anticipating that demand for womenswear and kidswear will be higher over this festive season.
The survey also revealed that 75 per cent of respondents thought mid-priced brands would perform best during the season, while only 18 per cent thought low-priced brands would perform better. This finding shows how mature Indian consumers are becoming in terms of not only considering price points but also their willingness to pay more for higher-quality products.
Not surprisingly, 52 per cent of respondents said they thought demand for Indian clothing would do well, followed by casual clothing, while formal clothing seemed to be falling out of style.
Furthermore, despite the e-commerce sector’s increasing presence in India, the survey reveals an encouraging preference of 75.5 per cent for offline retail compared to 24.5 per cent for online shopping.
Commenting on the outcome of the survey, Rajesh Masand, President, CMAI, said, “Considering the sluggish business environment that our industry has experienced in the past six months, the trends are not surprising. Yet, we are hopeful of not missing out on the Festive spending and expect demand to gradually surge considering the Wedding season later in the year”.
