Apparel Industry Expects Strong Festive Season Sales, Says CMAI Survey
Survey finds 52% of apparel companies expect higher sales, while Indian wear and online channels emerge as key growth drivers
India's apparel industry is entering the 2026 festive season with positive expectations, according to a survey conducted by The Clothing Manufacturers Association of India (CMAI) among its members. More than half of the respondents anticipate higher sales compared to last year, supported by improving economic conditions, positive consumer sentiment and strong retailer order bookings.
Despite the optimistic demand outlook, rising raw material costs continue to pose challenges for profitability, with many companies choosing to absorb higher costs rather than pass them on to consumers.
Majority of Companies Expect Higher Festive Sales
According to the CMAI survey:
- 52% of apparel companies expect higher sales than the previous festive season.
- 30% expect sales to remain at levels similar to last year.
- Less than 20% anticipate a decline in festive season sales.
The survey indicates that industry confidence has strengthened ahead of the festive shopping period.
Positive Economic Factors Support Industry Outlook
CMAI attributed the positive outlook to several factors, including:
- Improving macro-economic conditions
- A reasonable monsoon
- Positive consumer sentiment
- Expectations that the two major global conflicts are moving closer to resolution
The association also noted that strong retailer order bookings at its recently concluded National Garment Fairs (NGFs) have further reinforced confidence across the apparel industry.
Rising Raw Material Costs Continue to Impact Margins
While demand is expected to improve, profitability remains under pressure.
The survey found that:
- 54% of respondents are absorbing increased raw material costs by reducing their profit margins.
- Around 35% have increased product prices.
This suggests that higher festive sales may not necessarily translate into stronger margins for apparel businesses.
Indian Wear Expected to Lead Festive Demand
Among apparel categories, Indian wear is expected to record the strongest festive season performance.
Around 45% of respondents identified categories such as:
- Salwar suits
- Churidars
- Kurtas
as the leading growth segments during the festive period.
Western casual wear, including T-shirts and denims, is expected to be the next strongest-performing category.
Online Apparel Sales Continue to Gain Momentum
The survey also points to continued growth in online apparel sales during the festive season.
Although online channels currently account for around 12% of total apparel sales, respondents expect digital sales to gain further momentum, indicating a shift from the traditional view that festive apparel shopping remains largely offline.
Industry Outlook
According to the survey, the apparel industry's festive season outlook remains positive, supported by stronger consumer demand and improving market sentiment. However, rising input costs are expected to continue limiting margin expansion despite anticipated sales growth.