Winters slump looms on clothing industry; 25-30% orders shrink feared

New Delhi, June 13 (KNN) The market is currently facing a slowdown and manufacturers are projected to see a 25-30 per cent reduction in orders this winter,  Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI) told ETRetail.

The winter order booking in North India is currently experiencing a slowdown, while the outcome for West and South India will be determined starting from July. 

Pointing out the industry trend, Mehta said that the slowdown in orders for the upcoming season is in line with the 20-30 per cent fall in sales reported by manufacturers during the current summer season. 

Citing reasons for the slump in demand, he said that inflation coupled with input cost volatility across cotton, polyester yarn, and man-made fibers, resulting in higher-end prices for customers is contributing to a demand slowdown. 

As per a CMAI report, released in April this year, the apparel market grew 15 per cent in 2023 as compared to 2022, however, the growth was completely price-led. 

The majority of clothing retailers have taken a price increase of about 15-20 per cent over the past two years. This has especially impacted the demand from small towns for unorganised players, the report said. 

The overall Indian apparel market is pegged at Rs 5.3 lakh crore, excluding winterwear and women’s innerwear.   (KNN Bureau)