Retailers hope to clear inventories this season

As chilly weather in Northern part of the country ensure temperatures continue to quiver people, apparel retailers hope the weather warms up for the retailers this festival season.

As most of the apparel retailers have started announcing start of season sale, the only expectations they have this year is the excess inventory gets clear.

Rahul Mehta, President Clothing Manufacturing Association of India (CMAI), maintained apparel retailers more than anything, this year, were hoping the inventories get cleared, during the season sale period.

Apparels retailers maintain season last year has not been good for them as volume sales have shown a decline.

As per Mehta even as apparel sector might have observed value growth between 17-20%, there has been de-growth in volumes by 5%. The apparel sector which for last many years was observing a double digit growth ranging from 15-20% , has slumped to growth that has been downwards.

Retailers attribute there could be varied factors for volume sales in apparels not been encouraging last season.

The overall macroeconomic factors that somewhat has imparted negativity to the overall environment was one of the reason Mehta cites, for apparel volume sales faring poorly last season. Darpan Kapoor, President Chandigarh Readymade Garment Distributor Association (CRGDA) maintained excise duty imposed on branded garments that resulted in increase in cost of garments was another factor that led to decline in sales.

Kapoor added higher prices of cotton last season coupled with excise duty imposed on branded garments, resulted in pushing overall prices for garments, for which consumer was not prepared.

As per CMAI garment prices last year were 20-25% higher compared to earlier years. With season sales starting the retailers this time are keeping their finger crossed and hoping the season help them get rid of the inventories.