CMAI Survey: Festive Season Sales Dip for Retailers Amid Changing Consumer Trends

Ahead of the festive season, the Clothing Manufacturing Association of India (CMAI) reports lower sales expectations for 63% of clothing retailers and manufacturers, citing shifts in consumer spending. Despite this, 75% of retailers remain optimistic about mid-priced brands and offline retail performance.

According to a recent report from the Clothing Manufacturing Association of India (CMAI), 63 percent of clothing retailers and manufacturers are anticipating lower sales this festive season compared to last year. The report, released on Friday, attributes the downturn to evolving consumer behavior.

CMAI found that about 25 percent of respondents expect sales to drop to 75 percent of what they were the previous year. Consumers are reportedly allocating more spending to other lifestyle products, such as holidays, high-end gadgets, food and beverages, dining, and increased EMIs on homes and automobiles. Around 35 percent of respondents correlate these spending habits with the slump in clothing demand.

Inflation remains a significant challenge, with 24 percent of retail marketers identifying it as the top hurdle ahead of the festive season. Men's wear is identified as the most adversely affected category, though 75 percent of retailers remain hopeful about the performance of women's and children's wear.

The survey also reveals that 75 percent of respondents believe mid-priced brands will be the top performers during the festive season, suggesting an increasing consumer willingness to pay for quality. Supporting this trend, 52 percent foresee a high demand for Indian wear, followed closely by casual wear, while formal wear is less favored.

Despite the rapid growth of e-commerce, 75.5 percent of respondents prefer offline retail. Rajesh Masand, President of CMAI, noted the industry's recent sluggish business environment but remains hopeful for a demand surge bolstered by the upcoming wedding season.

(With inputs from agencies.)