KOLKATA: Readymade apparel sales have bounced back after two years of flat growth with brands, retailers, manufacturers reporting more than 10% growth in last quarter. A stable cotton pricing coupled with removal of 10% excise duty has worked in favour of apparel industry bringing consumers back to the market at a time when inflationary pressure and rising product prices are pinching their pockets.
The rising domestic demand has prompted the country's textile industry to increase production of apparel and also look at Bangladesh to build up sufficient inventory for the festive season which is expected to drive sales further in the second half of the current fiscal.
"The domestic apparel industry is once again back in the growth mode after a lull of two years. In the first quarter there has been an overall growth of around 10% even though the economic parameters are not very bright. The growth has come because consumers are not willing to hold back their purchases any further," said Rahul Mehta, president of the Clothing Manufacturers Association of India.
Apparel makers and retail chains like Turtle, Madura Fashion, Future Group and Spencer's Retail say steady apparel prices this year has induced consumers to undertake purchases and the wedding season too has helped the industry. Apparel brand Turtle director Amit Ladsaria says the brand has grown by 31% in the first quarter (April-June) of this fiscal as compared to the same period last year. "The best part of this growth in sales is that it happened on full price, without any discounts or consumer offers," says Ladsaria.
Allen Solly brand head Sooraj Bhat adds that more serious shoppers are in the market. "The growth is coming from higher conversions and triggered by regular customers who account for almost 40% of the sales. Footfalls are yet to pick up completely," he says, adding the brand has grown sales of like-to-like stores by 26% in the last quarter over same period last year.
Prices have played a key role in bringing back customers to the market. Though the production cost has gone up but the apparel makers have not passed it to the customers bringing them much relief.
Spencer's Retail president & CEO Mohit Kampani says on an average apparel prices is slightly less expensive compared to last year on per unit basis. "The steady prices has made apparel more affordable when other consumer product prices have gone up.This has been a big catalyst," he says. Spencer's Retail has grown by 15% in apparel on a like-to-like basis over last year. Future Group's fashion business too is growing upwards of 20% at the Big Bazaar stores which the company wants to grow further by recasting the business soon, a senior official said.
The total size of the Indian apparel industry is Rs2.4 lakh crore. Of this,Rs1.62 lakh crore worth of garments is consumed in India and the rest is exported. India has also increased its imports from Bangladesh, one of the leading apparel making nations in the world.
Source:-economictimes.indiatimes.com
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