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Indian apparel retailers bank on EOSS to clear stocks
16 Jan '12
2 min read
Apparels retailers in India, who saw a decline in sales during the festive season, are now banking on the end-of-the-season sales (EOSS) to get rid of their inventories.
Speaking to fibre2fashion, Mr. Rahul Mehta, President - Clothing Manufacturing Association of India (CMAI), said “I see a bumper EOSS this season. It might help retailers to clear of their inventories.”
An informal survey by CMAI indicates that the apparel retail sector had de-growth of up to 5 percent y-o-y in volume terms, though values may see a growth of around 15 percent during the festive season in 2011. Mr. Mehta says, “One needs to compare this with a consistent growth of between 12 to 15 percent in volume terms witnessed by the apparel industry for the last 8 to 10 years.”
Talking about the factors that led to a decline in growth by about 5 percent in volume, he says, “The insane rise in input costs at the beginning of the year, combined with the most inappropriately timed excise duty, increased the final prices in the retail to a level that was resisted by the consumers. This combined with the overall sense of negativity in the economy, brought about a slump not seen by the Indian apparel retail industry for many years.”
Forecasting about the apparel retail sales during the post-EOSS period, the CMAI President says, “The bumper EOSS may be followed by a dull Spring Summer season, partly due to the sluggish sentiments both overall and in the industry, and partly because the consumer may have filled his/her wardrobes by heavy purchasing during the discount sales.”
Speaking to fibre2fashion, Mr. Rahul Mehta, President - Clothing Manufacturing Association of India (CMAI), said “I see a bumper EOSS this season. It might help retailers to clear of their inventories.”
An informal survey by CMAI indicates that the apparel retail sector had de-growth of up to 5 percent y-o-y in volume terms, though values may see a growth of around 15 percent during the festive season in 2011. Mr. Mehta says, “One needs to compare this with a consistent growth of between 12 to 15 percent in volume terms witnessed by the apparel industry for the last 8 to 10 years.”
Talking about the factors that led to a decline in growth by about 5 percent in volume, he says, “The insane rise in input costs at the beginning of the year, combined with the most inappropriately timed excise duty, increased the final prices in the retail to a level that was resisted by the consumers. This combined with the overall sense of negativity in the economy, brought about a slump not seen by the Indian apparel retail industry for many years.”
Forecasting about the apparel retail sales during the post-EOSS period, the CMAI President says, “The bumper EOSS may be followed by a dull Spring Summer season, partly due to the sluggish sentiments both overall and in the industry, and partly because the consumer may have filled his/her wardrobes by heavy purchasing during the discount sales.”
Fibre2fashion News Desk - India
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