Up to 77% of survey respondents reported moderate to poor sales in the previous season. More than 60% of respondents attributed the weak performance to the overall economic downturn, while 14% attributed high prices. However, 13% of respondents felt that fewer good days compared to the previous season contributed to the drop in sales.
“Currently the market is seeing quite a significant decline, which is caused by the general inflation in the market. The first quarter of the current financial year is likely to be disappointing for the industry and the impact is being felt by both value and higher consumer segments,” said. Rajesh MasandChairperson, Clothing Manufacturers Association of India (CMAI).
When compared to the wedding season of 2022, 83% said there was no growth compared to the previous season. Most respondents (40%) reported a 10%-25% drop in sales year-over-year.
The majority of the nearly 85% of respondents indicated that economically priced products are better than more expensive varieties. According to the survey results, lighter embroideries and lighter colors are requested more.
“Exposure to Western culture with the ability to access content on social media platforms is affecting the way young people dress and fashion, which is causing a gradual shift from from traditional clothes to Western clothes, especially in the women’s clothing segment. On the other hand, some kind of ‘back to tradition’ is being seen in the menswear segment, with many men wanting to wear traditional clothes at festivals and weddings,” he said. Rahul MehtaChief Advisor, Clothing Manufacturers Association of India (CMAI).
The garment industry grows at a fairly stable rate of 8-10%/year. After the pandemic, the apparel industry has seen a resurgence in 2022 with consumers returning to brick-and-mortar stores and markets, and in 2022-23 is estimated to grow between 15-20%.
However, with material costs as well as total production costs having increased significantly, this growth is entirely driven by price, and volumes will remain 3-5% lower than last year.