Indian Clothing Retailers Expect Lower Sales This Festive Season: CMAI Report

New Delhi, India – Ahead of the festive season, a significant 63% of clothing retailers and manufacturers anticipate lower sales compared to last year, according to a report by the Clothing Manufacturing Association of India (CMAI). The report highlights that nearly 25% of surveyed retailers and manufacturers expect sales to be as low as 75% of the previous year due to changing consumer behavior.

The survey suggests that consumers are now spending more on other lifestyle products, holidays, high-end gadgets, food and beverages, dining, and increased EMIs on homes and automobiles. About 35% of respondents supported this shift in consumer behavior.

Inflation is identified as the top challenge by 24% of retail marketers, affecting sales ahead of the festive season. Men’s wear is the worst affected category, while 75% of retailers are hopeful that women’s wear and kids’ wear will see better demand.

An interesting insight from the survey is that 75% of respondents believe mid-priced brands will perform best during the festive season, indicating a maturing consumer base willing to pay a premium for quality. Additionally, 52% of respondents expect Indian wear to perform well, followed by casual wear, with formal wear being less favored.

Despite the rise of e-commerce, 75.5% of respondents still prefer offline retail over online retail. Rajesh Masand, President of CMAI, commented, “Considering the sluggish business environment in the past six months, the trends are not surprising. Yet, we are hopeful of not missing out on festive spending and expect demand to gradually surge with the wedding season later in the year.”