Home / Knowledge / News / Apparel/Garments / Apparel industry clocked moderate growth in FY16: CMAI
Apparel industry clocked moderate growth in FY16: CMAI
01
Jun '16
India's apparel industry clocked in moderate growth in the fiscal 2015-16, the Clothing Manufacturers Association of India's (CMAI's) annual Apparel Index showed.
 
CMAI's apparel index value of 5.32 points in 2015-16 was much lower than the Apparel Index for fiscal 2014-15 at 7.28. “In fact, 205-16 was a 'not so buoyant' period with even with the presence of the festive season, perceived as a season that helps in making up for turnover losses as consumer sentiment is at its best at that time, not recording very high growth,” CMAI's report on the Apparel Index said.
 
The index value for the last quarter of the financial year 2015-16, registered the lowest growth at 3.79 among the four quarters and it grew the most during the July-September 2015 quarter at 6.68, indicating business growth during this quarter which is dominated by the EOSS and pre-festive quarter. This was closely followed by the April-June 2015 quarter, known for the summer season that generally sees rise in fresh sales.
 
Right from the first quarter during the fiscal year, all indicators—sales turnover, sell through and investments, reflected a consistent fall in growth value in successive quarters, the report said.
 
The July-September 2015 quarter was the best performing quarter of FY 2015-16, except for the inventory holding criterion, which showed a significant improvement perhaps due to the offloading of inventories during the EOSS.
 
Interestingly, a comparison of last two financial years shows that the index fell in the first three quarters in both years. But in the fourth quarter of FY 2014-15, the index showed strong rebound, whereas in the fourth quarter of FY 2015-16, the growth further reduced. This pattern was seen in all performance attributes: sales turnover, sell through, investment and inventory holding in both financial years.
 
The index reflects that small brands have grown the least while large giant brands have consistently done better. Bidhyut Nath, head of advertising and marketing, Dollar, explains, “Dollar industries have been diversifying in the premium apparel segment for the last two years. There were new brand launches in premium segments. Hence, both production and advertising increased in the past one year.” As Anant Daga, CEO, W and Aurelia, says, “We increased our investments as we saw an increase in sales turnover and sell through in the quarter. Aurelia is expanding, the products are being received well in the market and we are seeing a robust same store sale growth.”
 
An analysis of the apparel index indicates that it is important to manage the two most important interdependent parameters—sales turnover and inventory holding. The latter bogs down the index; hence clearing inventories, even at discounts, gives a huge boost to the sales turnover. However, this does affect the sell through to an extent.
 
Independently increased investment also adds to the sales turnover, unless the investment is entrapped in inventory holding, which further pulls down the growth. (RKS)
 

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search