Gokaldas Exports Ltd., a Bangalore-based producer and exporter of clothes, predicted that because the world economy remained weak, demand for clothing will be weak in the first half of FY24.
Global retail offtake has been slow during the first quarter of FY24, according to Sivaramakrishnan G, Vice Chairman and Managing Director of Gokaldas Exports, which has caused overall imports of major consuming markets like the U.S., U.K., and the EU to decline significantly. This is primarily due to inventory overhang with the customers.
“Data on apparel imports revealed a year-over-year fall of 26% for the United States in April and May 2023 and 20% for the United Kingdom and Europe. High lending rates, a mild winter, and weak retail demand in the fall and winter of ’22 all led to surplus inventories that affected offtake for this year, he explained in a regulatory filing.
He continued, saying, “We are optimistic about the revival of the business in H2 and are bullish on the long-term prospects of our company.” Despite the fact that the global economy remained anaemic, the good news was that it could only get better.
