Weak sentiments in Indian retail ahead of festivals: CMAI survey

28 Sep '24

2 min read

Weak sentiments in Indian retail ahead of festivals: CMAI survey

Pic: Adobe Stock

Insights

A CMAI survey reveals weak sentiment in the clothing retail market ahead of the festive season, with 63 per cent of respondents expecting flat or lower sales compared to last year.
Men's wear is the worst affected, while mid-priced brands and Indian wear are expected to perform better.
Despite inflation concerns, 75.5 per cent prefer offline shopping.

The Clothing Manufacturers Association of India (CMAI) has released its annual survey of industry members, revealing weak expectations for the upcoming festive season in the retail market. According to the survey, 63 per cent of respondents expect clothing and apparel sales to either remain the same or decrease compared to last year. Notably, 25 per cent predict sales could drop as low as 75 per cent of previous year’s figures.

A significant factor affecting these low expectations is a shift in consumer spending towards other lifestyle categories, cited by 35 per cent of respondents. Additionally, 24 per cent attribute the slowdown to the state of the economy and rising inflation, which have weighed heavily on consumer confidence, as per the CMAI survey.

Men’s wear is reported to be the most affected apparel category, while women’s wear and kids' wear are expected to perform better during the festive season. Furthermore, 75 per cent of respondents believe that mid-priced brands will lead the market, indicating a growing consumer preference for quality over lower-priced options.

The survey also highlights a strong preference for offline retail, with 75.5 per cent of respondents favouring in-store purchases despite the rise of e-commerce in India. The demand for Indian wear and casual wear is also expected to perform well, while formal wear appears to be losing popularity.

Rajesh Masand, president of CMAI, commented on the findings: “Considering the sluggish business environment over the past six months, these trends are not surprising. However, we remain optimistic about a resurgence in demand, especially with the wedding season approaching later in the year.”

CMAI represents over 5,000 members from manufacturers, exporters, and brands, serving more than 35,000 retailers across India. Despite the current challenges, the association remains hopeful for a recovery in the festive and wedding seasons ahead.

Fibre2Fashion News Desk (KD)

More Retail News - India...