Retailers at risk of stagnation or decline this festive season

By Sandy Verma On Sep 28, 2024

MUMBAI�मुंबई: CMAI (Clothing Manufacturers Association of India) on Friday said after its annual survey of its members that clothing sales in the upcoming festival season may remain stagnant or lower compared to last year's sales. CMAI, which has more than 5,000 members and services more than 35,000 retailers across the country, said 63% of survey respondents expect same or lower sales of clothing and apparel compared to last year. Of these, about 25% expect sales to be equal to 75% of last year.

CMAI President Rajesh Masand said, “This trend is not surprising given the sluggish business environment that our industry has experienced in the last six months. Nevertheless, we are hopeful that festival spending will not decline and the year will be Ultimately, the demand will increase gradually considering the wedding season.” Although the reasons for such low expectations varied, the biggest factor influencing low sentiment was the significant shift in the bulk of consumer spending moving towards other areas of lifestyle – 35% of respondents expressed their low expectations. Attributed to this factor. Another large share of 24% respondents cited the slowing economy and inflation as the biggest challenges at the moment. Among apparel categories, menswear has been most impacted, with 75% of respondents expecting womenswear and kidswear to perform better in terms of demand during this festive season.