The Clothing Manufacturing Association of India (CMAI) conducted a survey revealing that 63% of clothing retailers and manufacturers are expecting lower sales during the upcoming festive season compared to last year. This significant decrease in sales is attributed to changed consumer behavior, with 25% of respondents predicting sales to be as low as 75% of the previous year. Consumers are now spending more on lifestyle products such as holidays, gadgets, dining, and EMIs on homes and automobiles, leading to a decline in demand for clothing.
The survey also highlighted that 35% of respondents recognized the shift in consumer behavior, while 24% of retail marketers identified inflation as the top challenge hindering sales in the market ahead of the festive season. Men’s wear was reported as the worst affected section in the apparel categories, with 75% of retailers optimistic about the performance of women’s wear and kids wear in terms of demand. The survey also revealed that mid-priced brands are expected to perform the best during the festive season, indicating that Indian consumers are willing to pay a premium price for quality.
Indian wear is anticipated to have a high demand, followed by casual wear, while formal wear seems to be less favored by consumers, according to the survey. Despite the growing popularity of online retail, the survey showed that 75.5% of respondents still prefer offline retail compared to 24.5% for online retail. Commenting on the survey results, Rajesh Masand, President of CMAI, expressed optimism for an increase in demand during the upcoming festive season, particularly with the approaching wedding season later in the year.
In conclusion, the survey conducted by CMAI revealed a challenging outlook for clothing retailers and manufacturers ahead of the festive season, with changing consumer behavior and inflation identified as key factors hindering sales. However, the optimism for mid-priced brands and the willingness of Indian consumers to pay a premium for quality indicate potential opportunities for growth. As the industry prepares for the upcoming festive and wedding season, it will be crucial for retailers and manufacturers to strategize and adapt to the evolving consumer preferences to boost sales and overcome the current market challenges.
