Mumbai, September 27, 2024: Overall emotions are still poor, according to the Clothes Manufacturers Association of India’s (CMAI) annual survey of its members, which is conducted to obtain a feel of what to expect from the retail industry before the festive season.
Remarkably, up to 63% of the participants anticipate either unchanged or decreased sales of apparel and clothing in comparison to the previous year. Of them, almost 25% predict that sales would be as low as 75% of what they were the year before.
Although there were many different reasons for such low expectations, 35% 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%—said that the two biggest difficulties facing them right now are inflation and a sluggish economy.
Men’s clothing appears to have suffered the most among the apparel categories; 75% of respondents anticipated that demand for women’s and children’s clothing would be higher during this festive season.
An intriguing finding from the survey was that 75% of participants believed mid-priced brands would perform best during the season, while only 18% believed low-priced brands would perform better. This suggests that Indian consumers are becoming more sophisticated in their consideration of not just price points but also their willingness to pay a premium for quality. It should come as no surprise that 52% of respondents believe there will be a strong demand for Indian clothing, followed by casual clothing, while formal clothing appears to be falling out of favor.
Furthermore, despite the e-commerce sector’s increasing presence in India, the survey reveals an encouraging preference of 75.5% for offline retail compared to 24.5% for online shopping.
Commenting on the outcome of the survey, Rajesh Masand, President, CMAI, said, “The developments are not surprising given the slow business climate our industry has faced over the last six months. However, given the impending wedding season later in the year, we aim to avoid missing out on the festive spending and anticipate a steady increase in demand.
With over 5000 members and over 35,000 retailers served nationwide, the Clothing Manufacturers Association of India (CMAI) is the main representative organization for the Indian apparel sector. Manufacturers, exporters, brands, and ancillary industries make up its membership.
