A recent survey by the Clothing Manufacturers Association of India (CMAI) highlights continued weak sentiment in the clothing and apparel sector ahead of the upcoming festive season. The survey, conducted among CMAI members, found that 63% of respondents expect sales to be the same or lower compared to the previous year. Of these, 25% foresee sales dropping to as low as 75% of last year’s figures.
The key reason for this subdued outlook appears to be a shift in consumer spending towards other lifestyle categories, with 35% of respondents citing this as the primary factor. Additionally, 24% of those surveyed pointed to economic slowdown and inflation as significant challenges.
Among apparel categories, men’s wear is expected to be the hardest hit, while women’s wear and kids’ wear are projected to perform better during the festive season. Mid-priced brands are anticipated to fare the best, according to 75% of respondents, with only 18% expecting better performance from low-priced brands.
Indian wear is predicted to see strong demand, with 52% of respondents favouring it over casual wear, while formal wear is expected to lag behind. Despite the increasing penetration of e-commerce in India, the survey showed a preference for offline retail, with 75.5% of respondents favouring it over online channels.
Commenting on the outcome of the survey, Rajesh Masand, President, CMAI, said, “Considering the sluggish business environment that our industry has experienced in the past six months, the trends are not surprising. Yet, we are hopeful of not missing out on the Festive spending and expect demand to gradually surge considering the Wedding season later in the year”.
The Clothing Manufacturers Association of India (CMAI) represents over 5,000 members and serves more than 35,000 retailers across the country.
