Apparel makers advance end-of-season sales

Manufactures report 30-50% fall in sales due to demonetisation

Mumbai

Last Updated : Dec 20 2016 | 0:30 AM IST

Leading textiles manufacturers plan to recover over half of their business in the next six weeks by advancing end-of-season sales.

Apparel and home textiles manufacturers have lost 30-50 per cent of their business since demonetisation. Dealing largely in cash, unorganised sector players have lost more. Organised sector players, which witnessed a sharp decline in sales, have advanced their yearly stock-clearing sales by five weeks.

"We see improved sentiment in the New Year. The plan is to be ahead on year-end sales," said Nagesh Rajanna, chief executive officer, Bombay Dyeing.

The company is offering up to 40 per cent discount on its products.

Apparel and home textile manufacturers normally announce sales in the second fortnight of January to clear inventory at up to 50 per cent discount. This year, they have announced the sale in mid-December. “We estimate a recovery in business during the sale period,” said RK Dalmia, president, Century Textiles.

A report by ICICI Securities said the effect of demonetisation would continue on textile demand for over two quarters. The industry would also see a structural shift with the adoption of digital payments and the goods and services tax, the report added. Raymond has, apart from a digital wallet offer, introduced a pay-later scheme for loyal customers. “We offer customers sale on equated monthly installments,” a company executive said.

Raymond had announced a 30 per cent decline in its business in the initial weeks of demonetisation.

Rajanna said the end-of-season sales would be a couple of weeks longer this year.

First Published: Dec 20 2016 | 0:26 AM IST