The Indian apparel industry is entering the festive season on a positive note, with 52% of CMAI members anticipating higher sales than last year, according to a recent survey conducted among members of the Clothing Manufacturers Association of India (CMAI). Another 30% of respondents expect sales to remain at last year’s level, while less than 20% anticipate a decline.
The positive outlook is supported by improving macroeconomic conditions, a reasonable monsoon, positive consumer sentiment and expectations that the two major conflicts in the world are moving closer to a resolution.
Strong order bookings from retailers at CMAI’s recently concluded National Garment Fair (NGF) have further strengthened industry confidence.
Raw Material Costs Remain a Concern
Despite the positive sales outlook, rising raw material costs continue to pose a challenge for apparel manufacturers.
Around 40% of respondents said they are absorbing higher costs by reducing margins, while 35% have increased prices. The findings indicate that higher festive demand could continue to be accompanied by pressure on profitability.
Indian Wear Expected to Lead Festive Growth
Indian wear is expected to lead festive-season growth, with categories such as salwar suits, churidars and kurtis identified among the strongest performers.
The survey also points to continued demand for western casual wear, including denims, as another category expected to perform during the festive period