Apparel, Fashion & Retail | News & Insights

Reflecting Optimism in the Indian Apparel Industry

Published: May 10, 2024

The Clothing Manufacturers Association of India (CMAI) recently hosted the Fabrics, Accessories & Beyond Show 2023 (FAB Show 2023), along with the CMAI Vendor Sourcing Fair 2023 (VSF 2023), which concluded on a high note with approximately Rs. 2000 crores worth of business generated during the three-day event.

This year’s CMAI FAB Show 2023 attracted over 12,000 visitors, including more than 1500 top platinum buyers and renowned brands such as Amazon, Ajio, Anita Dongre, Myntra, and many others. The increased participation reflects the growing interest in the Indian apparel industry and the opportunities it offers.

Rajesh Masand, President of CMAI, shared his insights on the industry outlook, stating that the garment retail segment in India is estimated to be Rs 8 lakh crore. Despite minimal overall industry growth post-pandemic, there is optimism for healthy growth especially in the occasion wear segment during the upcoming festive and wedding season.

Mr Masand highlighted the challenges faced by the industry, including a 50% rise in cotton yarn prices over two years, leading to a 15-20% increase in garment prices. This rise has slowed down demand in the unorganized sector, particularly in tier-2 and tier-3 cities, posing a significant challenge to manufacturers and retailers.

Venu Nair, Managing Director & CEO of Shoppers Stop Ltd., expressed optimism for the apparel segment’s growth, citing their strategic pillars of Private Brands, National Brands, and Store Expansions. With expectations of strong demand during the wedding and festive season, the market is poised for positive growth.

Manish Kapoor, CEO of Pepe Jeans, shared insights on the denim segment, anticipating promotional growth in the summer driven by price and volume. The premium denim segment is expected to grow at 12-13%, with a focus on sustainable and on-trend products. A 15-18% growth is anticipated during the festive season.

The CMAI FAB Show 2023 also witnessed participation from international buyers and exhibitors from countries such as Bangladesh, China, UAE, and the UK. Leading exhibitors included Arvind Mills, Grasim Mills, and other prominent names in the industry.

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