Indian apparel market expands 15% in 2022-23: Report

New Delhi, Apr 24 (KNN) The apparel market in India expanded by 15 per cent during 2022-23, the Economic Times (ET) said in a report.

The ET report pointed out that the expansion in the market is not due to the rise in sales but because of the price hikes.

In fact, sales went down by 3 per cent according to data released by the Clothing Manufacturers Association of India (CMAI), the report said.

Rahul Mehta, chief mentor at CMAI, was quoted in the report as saying, "There was an upswing in sales after lockdowns after consumers rushed to malls and stores, but that has normalised now. We see large branded and organised chains performing well despite price increases, but a large chunk of smaller retailers and apparel makers operating out of multi-brand outlets in smaller towns are feeling the pressure due to inflation."

In the last two years, the price of cotton has increased by 50 per cent. This has led to the price hike by 15-20 per cent by manufacturers.

“The price hike has resulted in a dip in consumer demand. This is especially true for small-town businesses in the unorganised sector,” report added.

Elaborating on the trends in the sector, the report added that there is a significant shift in the consumer preference, with consumers now wanting branded products. The branded apparel segment now accounts for 30 per cent of the market, which was only 25 per cent five years ago.  (KNN Bureau)