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

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search