India's apparel biggies record higher sales in Q1

21 Aug '15

4 min read

Sales turnover continued to grow moderately at 4.84 points. However, higher inventory holding continued to bog down the apparel industry's performance. In fact, this factor alone can offset the positive contributions of all other parameters. Sell through and fresh investments improved, though moderately.

The report found that inventory holding increased among 74 per cent of the brands. However, 12 per cent said their inventory holding remained the same. A good 14 per cent witnessed a decrease in inventory holding.

As for fresh investments, 81 per cent respondents have increased their investments. Suraj Bhatt, Brand Head, Allen Solly, pointed out, “We have made fresh investments this quarter to fund higher sales and retail expansion.”

A comparison of Apparel Indices of the First Quarter April-June 2014 and the First Quarter April-June 2015, reveals that the Index value was higher, at 9.15, last year compared to 6.2 this year.

Overall, the apparel industry failed to maintain growth against the same quarter last year on all aspects. Low consumer spending further affected the sales turnover. But nearly 48 per cent of the brands feel that the outlook for the next quarter, from July to September, is good. (SH)

Fibre2Fashion News Desk – India

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