Apparel retailers set sights on double-digit growth as harsh winters set in

Apparel retailers are expecting a double-digit growth in the third quarter of the ongoing financial year, as winter wear starts to fly off the shelves.

 

“Sentiments are very high this year as winter has come in earlier than expected. It is also expected to be a more intense season. People started layering up early on, so we’re going to see increasing demand in the coming month. We are highly optimistic about achieving double-digit growth,” Dhruv Garg, cofounder and chief executive officer (CEO) at apparel brand Global Republic, told Business Standard on the sidelines of the recently held Retail India Summit and Expo (RISE).

 

According to the Indian Meteorological Department (IMD), minimum temperatures are likely to be below normal 2-4 degrees Celsius over most parts of the country between November 27 and December 3, except northeast India and western Himalayan region, where these are likely to be above normal by 2-4 degrees Celsius during the week.

 

In a communication dated November, 20, the department added that cold-wave conditions are likely to occur at isolated pockets of west Rajasthan, south Punjab and south Haryana during some days of the week.

 

For apparel retailers, this will mean the November-January period will be a strong one as compared to last year, when the winter season was shorter and temperatures remained higher than expected during these months.

 

“This year, the weather forecast has made us optimistic of a good season. It is going to be chilly, and we are expecting good high double-digit growth, taking off from November,” said Rajesh Jain, managing director (MD) and CEO, Lacoste India, adding that the brand has also enhanced offerings this year with the introduction of new styles and limited collection of heavy jackets.

 

Value retailers, too, are hopeful of a strong winter season.

 

“The early onset of winters and the election getting over will also bring growth in Bihar. We expect November should be very good, as compared to some softness that we saw during October,” said Lalit Agarwal, MD at V-Mart Retail.

 

For Akhil Jain, MD and CEO at Jain Amar, which owns brands such as Madame and Camla Barcelona, winter wears had started gaining traction from the last week of October itself.

 

“This is much different than last year as the temperature started to dip earlier than usual this year. We are expecting to see strong demand trends for all winter wears this year, also helped by the wedding season,” he said.