Garment Sales Fail to Shine During Diwali 2023

Diwali, the festival of lights, usually brings a boost to sales across various categories in India, including garments.

However, the 2023 Diwali season, which ended on November 12, has left representatives of the garment sector disappointed with the lackluster sales performance.

Garment Sales Fail to Shine

Garment sales during Diwali 2023 were the weakest since the COVID-19 pandemic began, according to Rahul Mehta, Chief Mentor of the Clothing Manufacturers Association of India (CMAI).

This subdued performance contrasts with the growth experienced by other categories like FMCG products, domestic appliances, automobiles, and personal devices.

Mehta suggests that consumers may have prioritized social and religious aspects of the festivities, leading to increased spending on home upgrades, gold and silver purchases, and entertainment.

Additionally, impulsive garment purchases throughout the year might have resulted in well-stocked wardrobes, eliminating the need for new clothing during Diwali.

Bhivandi Powerloom Industry Takes a Break

The Bhivandi powerloom industry, which supplies to the domestic garment market, is taking a 20-day holiday due to the sluggish demand that has affected the entire textile value chain.

This decision reflects the overall downturn in the garment sector.

Inflation Dampens Spending

India's rising inflation, currently at 5.4%, is expected to continue throughout the fiscal year 2023-24. This increase in the cost of living is likely to adversely affect discretionary spending, including garments.

CAIT's Conflicting Narrative

Despite the subdued garment sales, the Confederation of All India Traders (CAIT) claims that retail markets across India registered record sales of Rs 3.75 lakh crore during the entire festive season, encompassing Navratri, Durga Puja, and Diwali. They further project an additional Rs 50,000 crore in sales from upcoming festivals.

In Summary

While the overall festive season witnessed record sales across various sectors, the garment retail industry experienced a mixed bag of results.

Despite intentions to increase spending, garment sales failed to meet expectations, raising concerns among industry representatives.

The mixed performance highlights the challenges faced by the garment sector amidst economic uncertainties.