New Delhi: Apparel manufacturers and brands expect a 25 per cent fall in sales this festive season when compared to last year, said a recent survey by the Clothing Manufacturing Association of India (CMAI).
The survey included inputs from 166 apparel manufacturers, of which 78 per cent expect a slowdown in sales while 22 per cent of the respondents projected that the market will pick up in the upcoming festive season.
The slump in sales is expected owing to non-industry factors such as economic slowdown and inflation.
“A majority of respondents expect the market to be subdued and that economic factors as well as the pricing strategies continue to be pivotal in shaping sales expectations,” commented Rajesh Masand, president, CMAI.
A decent share of 16 per cent of respondents in the survey highlighted that lower pricing might help the sales numbers to grow, while 12 per cent cited better options in clothes to drive sales.
In terms of pricing, the majority of respondents said that they expect mid-price range clothing to perform better than expensive clothes and low-priced clothes.
Category-wise, the survey highlighted that kid’s wear will lead the way in sales followed by women’s wear and men’s wear.
Despite the slowdown, Rahul Mehta, chief mentor, CMAI shared that he anticipates an upswing in the market after Diwali, owing to the extended wedding season.
He also stated that 60 per cent of respondents feel that offline stores will do better during the festive season whilst 40 per cent believe that online portals will perform better.
Geography-wise, the report said that the majority of manufacturers and brands expect tier 2 and tier 3 cities to outshine metros in clothing sales.
