Ludhiana’s knitwear sector faces losses due to falling winter clothing sales, Retail News, Retail ET
Chandigarh: Ludhianapopular hosiery cluster in Punjab is staring at losses due to lower consumption garments because winter is delayed as it is hard to get repeat orders while retailers have been left with a large stock winter wear. the weak demand Cold weather clothing forced the knitwear industry to slash prices in early December to attract customers at retail counters and free up inventory.
On the other hand, big brands in the knitwear sector start cutting prices in the last week of December or the first week of January, the industry said. October, November and December are considered important months for the knitwear industry of Ludhiana, one of the oldest clusters in the country. The main markets of the knitwear industry are Punjab, Haryana, Delhi, Himachal Pradesh, Uttar Pradesh, Rajasthan, Jammu and Kashmir, Bihar and some northeastern states.
This industry is famous for winter garments such as jackets, sweaters, thermals, turtlenecks, pullovers, innerwear, scarves, etc.
Sham Bansal of Rage, a well-known and premium brand of womenswear, said: “As winter arrives late, the knitwear sector in Ludhiana is facing a tough time.
Peak sales for winter clothing take place in October, November and December, another manufacturer pointed out.
“But the demand for this season’s garments from wholesalers and retailers is very low. They only order once and don’t return to order a second or third time while complaining that the demand for seasonal garments is very low. Winter in retail stores is very low. counter,” said another winter apparel manufacturer.
Some manufacturers have been afraid to release existing inventory and are offering 10-20% discounts on winter clothing.
“We started to reduce the price from December 10, but retailers say what they will do with it when there is no demand,” the manufacturer said. Navin Sood, who owns a factory in Ludhiana, said retail sales this season have fallen by more than 50% compared to the normal business season.
“This time the winter is starting to slow down, leading to a drop in demand for apparel,” Sood said. Weather conditions are still not favorable for the knitwear industry.
He added: “Our Tibetan customers buy winter clothes from Ludhiana and sell them in some parts of the country by setting up booths and organizing exhibitions, this time they do not place repeat orders due to demand. demand is weak. Usually they buy two to three sets of winter clothes during the season.”
“Similarly, Kashmiri merchants also buy goods from us and sell them door to door, but this time they don’t want to do another round of re-ordering,” Sood points out.
Knitwear manufacturers added that when they called wholesalers and retailers in Punjab and other states for payment, their customers attributed poor sales and submitted videos showing the stores filled with inventory.
Sood said the December wedding season also failed to boost demand for winter wear, another setback for the industry.
“The unfavorable weather has come as a huge disappointment and will not yield good results for the knitwear industry,” Sood said.
Although minimum temperatures have dropped in many parts of the northern region over the past few days, the knitwear industry is hopeful that demand for winter clothing may increase, which will help free up some inventory. existing warehouse.