The Indian apparel industry is entering the festive season on a positive note, with 52% of CMAI members expecting higher sales than last year, while another 30% expect to match last year’s performance, according to a recent survey conducted among members of The Clothing Manufacturers Association of India (CMAI). Less than 20% of respondents anticipate a decline in sales.
The optimism is supported by improving macro-economic conditions, a reasonable monsoon, positive consumer sentiment and expectations of the two major conflicts in the world seen coming closer to a resolution. Strong order bookings by Retailers at CMAI’s recently concluded National Garment Fairs (NGFs) have further reinforced industry confidence.
However, rising raw-material costs remain a concern. Around 54% of respondents are absorbing higher costs by reducing margins, while only about 35% have increased prices. This indicates that higher festive sales could come with continued pressure on profitability.
Indian wear is expected to lead festive-season growth with 45% of respondents identifying categories such as salwar suits, churidars and kurtas as the strongest performers, followed by western casual wear such as T-shirts and Denims.
Interestingly, online apparel sales are also expected to gain momentum during the festive season. With online currently accounting for around 12% of apparel sales, its anticipated growth challenges the traditional assumption that festive apparel shopping will remain predominantly offline.
Overall, the festive outlook for the apparel industry remains positive, with stronger demand and consumer confidence expected to drive growth, although rising input costs could limit margin expansion.
