Domestic clothing manufacturers may see 25% fall in orders for festive season

Industry insiders predict a 25–30 per cent decline in order bookings for the next holiday season for domestic clothing producers.

Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI), stated that the sector is now experiencing a slowdown and that producers could expect a fall in orders of between 25 and 30 percent this winter.

The results for West and South India will be known starting in July, while North India has already reported a slowdown in order booking for the upcoming winter. The anticipated downturn in demand was noted by several manufacturers who were present at the CMAI North India garment fair 2023 earlier this month.

Mehta noted the general direction of the market, stating that the slowdown in orders for the next season is consistent with the 20–30 per cent decline in sales that manufacturers have recorded for the current summer season.

He gave explanations for the decline in demand, citing inflation along with input cost instability for cotton, polyester yarn, and man-made fibres that result in higher end pricing for consumers.

According to a CMAI analysis published in April of this year, the apparel market expanded 15 per cent in 2023 compared to 2022, but the growth was entirely driven by price. Over the previous two years, the majority of clothes merchants have accepted price increases of roughly 15-20 per cent.

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.