This holiday season, most clothing manufacturers anticipate a 25% drop in demand: CAMI

 This holiday season, most clothing manufacturers anticipate a 25% drop in demand: CAMI

Delhi, New: According to the Clothing Manufacturing Association of India (CMAI), an industry association, most clothing retailers and manufacturers anticipate a 25% decrease in demand for garments this holiday season compared to the previous year. This information was released on Monday.

In order to determine customer demand, CMAI polled 166 clothing manufacturers and brands. In a statement released on Monday, it said that while around 22% of respondents anticipate a market rebound during the next holiday season, roughly 78% anticipate a 25% decline in sales this year compared to last year's sales.

Sluggish consumer demand has been caused by rising prices and a general recession, according to CMAI. The primary reason why respondents' estimates for sales were lower than they were a year ago was the general downturn in the economy, according to almost 30% of them. According to the report, around 16% of respondents believe that reduced prices might increase sales.

With India celebrating a number of festivities between October and December, retailers usually freshen up their wares and boost their advertising budgets. The association's views coincide with businesses hoping that the rest of the holiday season would see an improvement in demand.

According to over 49% of respondents, sales of children's clothing will be the highest. Men's wear was mentioned by 12% of respondents and women's wear by 36% of respondents as the clothing category that would do the best. Approximately 80% of respondents voted in favor of tier-2 and tier-3 cities outperforming metros in clothes sales, according to the study.

Rahul Mehta, chief mentor of CMAI, said that while there has been some good attitude over the last three or four days, there is still a general feeling of pessimism among CMAI members.

This is consistent with the general downturn that the domestic apparel industry has been experiencing over the last four to five months. However, given the upcoming lengthy wedding season, we expect a market rebound after Diwali. Mehta said, "Up to 60% of respondents thought traditional retailers will do better over the holiday season, while 40% thought internet portals would perform better.