Home / Knowledge / News / Apparel/Garments / Big brands notch impressive score on CMAI's Apparel Index
Big brands notch impressive score on CMAI's Apparel Index
18
Nov '14
In CMAI’s Apparel Index for the July to September 2014 quarter, ‘Big Brands’ scored an impressive growth of 9.98 points, while ‘Small Brands’ reached a meagre 4.24 points.

“In fact, Small Brands low growth impacted the Overall Index Value, which recorded an average 7.96 points growth,” CMAI says.

According to CMAI, high inventories emerged the biggest barrier to growth despite positive consumer sentiment.

“Players’ inability to manage and control inventories to make way for fresh merchandise, heavily impacted sales turnover and profit margins,” it said.

CMAI’s Apparel Index aims to set a benchmark for the entire domestic apparel industry and helps brands in taking informed business decisions.

The Index is analyzed on the basis of four key parameters like sales turnover, sell through or percentage of fresh stocks sold, number of days of inventory holding and investments.

For the reporting quarter, 105 brands shared their responses. Of these, 9 were Giant Brands, 30 Large Brands, 29 Mid Brands and 37 Small Brands.

The Index categorises Giant Brands as turnover above Rs 300 crore, Large Brands with turnover between Rs 100-300 crore, Mid Brands with turnover in range of Rs 25-100 crore and Small Brands with Rs 10-25 crore turnover.

As per CMAI, Small Brands slow growth has impacted the overall index value. But what worked for Big Brands is; good growth in sales turnover and a restricted increase in inventory holding.

Small Brands recorded average growth in sales turnover because of an increase in inventory holding.

However, most players have reported growth in the second quarter of fiscal 2014-15 compared to the same quarter last year.

Many have indicated an overall a reasonable growth quarter, with few signalling negative performance during the quarter under review.

Most retailers plan their inventories well in advance keeping the demand for a particular product, style and pricing in mind.

Old inventory is regulated so that they can quickly make way for fresh merchandise on the racks for the new season. However, the index reflects that only a few managed their inventories well.

Almost 70 per cent respondents said that their inventory holding increased, impacting profitability.

The Apparel Index shows a tremendous improvement in fresh investments. Almost 86 per cent respondents said that they increased investments during the quarter, compared to the same quarter previous year.

Six per cent respondents said they raised investment by more than 41 per cent, 20 per cent hiked investments by 21 to 40 per cent, 60 per cent by 1 to 20 per cent, while 10 per cent said it stayed the same and the rest of 4 per cent saw a dip in their investments.

Among the four parameters, on which players are scaled, the highest growth in value during the second quarter was contributed by Sales Turnover at 5.71 points, while Sell Through at 2.34 points, witnessed a moderate growth.


Must ReadView All

Textiles | On 21st Jul 2017

No shortage of cotton & yarn in country: Minister

There is no shortage of cotton and yarn in the country, and the...

Pic courtesy: Sutlej Textiles & Industries Ltd

Textiles | On 21st Jul 2017

Sutlej Textiles’ Q1 FY18 EBITDA expands to Rs 76.28 cr

Sutlej Textiles and Industries Ltd (STIL), one of India’s largest...

Textiles | On 21st Jul 2017

CAI revises 2016-17 cotton crop to 337.25 lakh bales

Cotton Association of India (CAI) has upwardly revised cotton crop...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Bani Batra

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

July 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

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

Yes No

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

Yes No

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


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



X