Indian apparel retail sales to decline in S/S 2012

Indian garment retailers are likely to witness their sales going down in the Spring-Summer 2012 season.

The good sales clocked during the end-of-the-season-sales (EOSS) last month mean that the consumers may not make their usual number of purchases during the approaching season.

The weakening of Indian economy, high inflation, the continuation of excise duty on branded garments and high cost of raw materials are the other factors that are likely to affect apparel sales during the forthcoming season.

Speaking to fibre2fashion, Mr. Rahul Mehta, President of the Clothing Manufacturers Association of India (CMAI), said, “The slackening of Indian economy, plus the high inflation, has definitely made an impact on the overall sentiment that is prevailing in the market. It has made apparel a discretionary purchase and therefore it can be postponed and purchases can be put on hold.”

“The situation is further worsened due to the specific effects of excise duty and high raw material costs. All these factors added up to give us some of the lowest results in the July-December period of last year. This can partly be confirmed by the sales during EOSS period in January, where most retailers have declared very good uptake. This indicates that consumers were postponing their purchase and purchased during EOSS in good measure because of the discounted prices. Even foreign brands have offered discounts up to 70 percent in their EOSS,” he adds.



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