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Ahead of the festive season, a substantial 63 per cent of clothing retailers and manufacturers expect lower sales compared to last year, the Clothing Manufacturing Association of India (CMAI), an industry body, said in a report on Friday.
CMAI added that nearly 25 per cent of the surveyed retailers and manufacturers are expecting the sales to be as low as 75 per cent of the previous year because of changed consumer behaviour. The survey suggests that consumers are spending more on other lifestyle products and this seems to be the biggest reason for lower demand for clothing. As per CMAI, the other emerging avenues include increased expenditure on holidays, high-end gadgets, F&B, dining, and overall increased EMIs on Homes and automobiles. About 35 per cent of respondents supported the changed consumer behaviour in the market, the survey said. According to the report, 24 per cent of retail marketers say inflation is the top challenge hindering sales in the market ahead of the festive season. The outcome of the survey indicates that men's wear is the worst affected section in the apparel categories. A significant 75 per cent of retailers are hopeful that women's wear and kids wear will perform better in terms of demand. Another interesting insight emerging from the survey was that an overwhelming 75 per cent of the respondents felt that the mid-priced brands would do the best during the festive season, while only 18 per cent felt that low-priced brands would do better. The retailer's positive expectation of mid-priced brands indicates that the Indian consumers are maturing not just in terms of price points but also the consumers are willing to pay a premium price for quality, the CMAI said. About 52 per cent of the respondents anticipate demand for Indian wear to perform well, followed by casual wear, whereas formal wear seems to be out of favour, according to the survey's observation. Furthermore, the survey shows an encouraging 75.5 per cent preference for offline retail against 24.5 per cent for online retail, despite the growing penetration of the e-commerce industry in India. Commenting on the outcome of the survey, Rajesh Masand, President, CMAI, said, "Considering the sluggish business environment that our industry has experienced in the past six months, the trends are not surprising. Yet, we are hopeful of not missing out on the Festive spending and expect demand to gradually surge considering the Wedding season later in the year". (ANI)
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