New Delhi: In anticipation of the festive season, a significant portion of clothing retailers and manufacturers, comprising 63 percent, anticipate a decline in sales compared to the previous year, as reported by the Clothing Manufacturing Association of India (CMAI), a representative body within the industry.
The CMAI further noted that nearly a quarter of the respondents, approximately 25 percent, foresee sales dropping to as low as 75 percent of the previous year, attributing this shift to altered consumer behavior.
The survey indicates a trend where consumers are increasingly investing in other lifestyle products, which appears to be the primary factor contributing to the reduced demand for clothing.
According to the CMAI, emerging trends include higher spending on holidays, luxury electronics, food and beverage, dining experiences, and an overall increase in housing and automobile expenses.
Forty-five percent of the respondents acknowledged the shift in consumer behavior within the market. The report further highlights that inflation is identified as the foremost challenge to sales in the market leading up to the festive season, with 24 percent of retail marketers citing this issue.
The findings suggest that the men's wear segment is the most adversely affected category within the apparel sector.
However, there is a glimmer of hope, with 75 percent of retailers expressing optimism regarding the demand for women's wear and children's wear.
An intriguing finding from the survey is the preference for mid-priced brands, with an overwhelming 75 percent of respondents indicating their preference, in contrast to only 18 percent favoring low-priced brands.
This preference for mid-priced brands suggests a shift in consumer behavior towards valuing quality over price, according to the CMAI.
Forty-two percent of the respondents expect Indian wear to see a surge in demand, followed by casual wear, while formal wear appears to be less popular.
Additionally, the survey reveals a strong preference for in-store shopping over online retail, despite the increasing influence of e-commerce in India, with 75.5 percent favoring the former and 24.5 percent leaning towards the latter.
In response to the survey's findings, Rajesh Masand, President of the CMAI, commented, "Given the challenging business environment our industry has faced over the past six months, these trends are not entirely unexpected. However, we remain hopeful of capitalizing on the festive spending season and anticipate a gradual increase in demand, particularly with the upcoming wedding season."
