>>
Home / Knowledge / News / Apparel/Garments / CMAI's Apparel Index for Q3 shows lowest growth at 1.4 pts
CMAI's Apparel Index for Q3 shows lowest growth at 1.4 pts
01
Mar '17
CMAI’s Apparel Index for the third quarter FY 2016-17 shows that the quarter has had the lowest growth, so far, with the overall Index Value at 1.4 points, as compared to the previous quarter, where overall Index Value was 4.64 points. The dismal growth is an outcome of demonetisation that had an impact on all segments and sectors of the Indian economy.

Within apparel industry, the impact of demonetisation has been felt, across the board. However, large and giant brands seem to have adapted to the situation and managed their brands’ growth. While large brands were at 7.23 points, giant brands scored 8 points. Small brands, however, were hit badly recording negative growth at -0.55 points, while mid brands managed to grow a meager 1.22 points, according to a CMAI report on its Apparel Index for October-December 2016 quarter.

Large and giant brands were able to maintain growth with fast clearance off goods and discounts that increased the sales turnover to 4 and 6.67 points and reduced inventory holding increase to just 0.68 and 1.77 points, respectively. Comparatively, small and mid brands lost sales turnover in Q3 by 0.45 and 0.22 points and inventory holding increased for small brands at 2.70 and mid brands at 1.25 points. This had a cumulative impact on sales turnover and inventory holding of overall Index Value as small brands and mid brands outnumber large and giant brands greatly.

Indeed there is a strong correlation between sales turnover and inventory holding and this explains the difference in the Index Value of different groups. Since small and mid brands are more dependent on trade and have less control on retail, they could not push sales, while large and giant brands could stimulate sales turnover, thereby restricting inventory holding. As Anant Daga, VP, ‘W’ and Aurelia, says, “Inventory reduction is a result of better than expected sales against planned buys.”

Explaining the plight of winter wear makers and retailers which was impacted the most due to demonetisation, Vinod Kumar Gupta, MD, Dollar Industries, says, “Some of our products like thermals—which are seasonal in nature and production—had been done in the month of July and August, to be sold up in winter months; but with demonetisation, the entire industry witnessed a drastic fall in the last quarter. Naturally, our inventory increased by a huge margin.”

Inventory holding recorded an Index Value growth of 2.53 points. Inventory duration increased in Q3 amongst all brands—62 per cent. Nearly 28 per cent brands reported an increase of between 1-20 per cent in holding; another 22 per cent reported an increase of 21-40 per cent; and only 12 per cent said their inventory holding went up 41 per cent, or more. However, 21 per cent respondents said their inventory holding remained the same. For 17 per cent respondents, there was a decrease in inventory holding—13 per cent between 1-20 per cent whereas 3 per cent decreased between the 21-40 per cent slab and 1 per cent more than 41 per cent.

According to the report, sales turnover saw an Index growth of 0.72, while 54 per cent of brands reported an increase in sales turnover. Of these, 40 per cent grew between 1-20 per cent; 10 per cent grew between 21-40 per cent; and 4 per cent grew 41 per cent, or more. The brands that grew 41 per cent or more were mostly giant brands at 22.3 per cent, followed by large brands at 9.1 per cent. Nearly 8 per cent respondents said their sales turnover remained the same. A significantly high number of respondents reported a loss in Q3 at 38 per cent, maximum respondents who reported a loss in turnover were from small brands with 71.05 per cent respondents, followed by mid brands—23.68 per cent—and large brands at 5.2 per cent. No giant brand indicated a loss in turnover in Q3.

However, around 41 per cent of brands feel that the outlook for January-March 2017 quarter in ‘Good’. Another 10 per cent say the outlook is ‘Excellent’. Nearly 42 per cent foresee an average outlook and 7 per cent feel it will be ‘Below Average’. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: White House

Textiles | On 23rd May 2022

President Biden, 12 Indo-Pacific partners launch IPEF in Tokyo

US President Joe Biden along with a dozen initial partners—India,...

Pic: Shutterstock

Textiles | On 23rd May 2022

UK & Mexico begin negotiations on modern trade deal

UK and Mexico have launched negotiations on a new UK-Mexico Free...

Pic: Shutterstock

Textiles | On 23rd May 2022

Turkiye, UAE sign preliminary deal to boost trade, business

UAE federal export credit agency Etihad Credit Insurance (ECI)...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Uniform designing is a numbers game

Textile Industry, Head honchos

Textile Industry
Head honchos

Luxury is not just about high prices but ability to create desire

Textile Industry, Head honchos

Textile Industry
Head honchos

Global supply chain collapsed during the pandemic

Klaus Bergmann,

Klaus Bergmann

German company Erbatech GmbH develops, designs and manufactures high end...

Alberto Candiani & Simon Giuliani,

Alberto Candiani & Simon Giuliani

Candiani Denim was established in 1938 in a tiny town near Milano and is a ...

Jeffrey F Hsu,

Jeffrey F Hsu

As a world leading textile innovation and solutions company, NTX creates...

Daniel Roxbury, University of Rhode Island

Daniel Roxbury
University of Rhode Island

Assistant professor Daniel Roxbury and former URI graduate student...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Francesca Palumbo, Label - Francesca Palumbo

Francesca Palumbo
Label - Francesca Palumbo

Francesca Palumbo creates intricate and detailed knitwear that follows the ...

Eirinn Hayhow, Label - Eirinn Hayhow

Eirinn Hayhow
Label - Eirinn Hayhow

Eirinn Hayhow, founder of her eponymous label, is renowned for creating...

Rocky Star, Label - Rocky Star

Rocky Star
Label - Rocky Star

<b>Rocky Star,</b> an Indian designer known for his inspiration from the...

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

Leave your Comments

ESTEEMED CLIENTS

Phong Phu international JSC (PPJ)
Huntsman (Singapore) Pte Ltd
Maceton Limited
H;&M Hennes ;& Mauritz (Far East) Ltd
Permoda(Koaj/Armi/Pronto/Bkul)
THE BOMBAY DYEING ;& MFG.CO. LTD
The Top Form Brassiere Manufacturing Company Limited
Page Industries Limited (Bangalore)
Grasim Industries Limited
GIOVANNI BOZZETTO S.p.A.
Zünd Systemtechnik AG
BTSR International S.P.A.
Aquarelle Clothing Limited
Gap International Sourcing Limited
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Lacoste (Wanchai)
Taiwan Textile Federation (TTF)
Alison Hayes Romania
Kern – Liebers Textile
Itema Weaving (India) Private Limited
PVH Corporation
Rieter India Private Limited
Copenhagen Fashion Summit
ITMA Services Pte Ltd
Vianney Textil Hogar S.A. De C.V.
HYOSUNG CORPORATION INDIA PRIVATE LIMITED
Marzoli Machines Textile s.r.l.
Comasia Limited
Performance Days
Datatex Consulting Srl
Abit
Splash
BIRLA CENTURY A DIVISION OF CENTURY TEXTILES AND INDUSTRIES
EMBEE CORPORATION
Varner AS Retail
Messe Duesseldorf
Dow Silicones Corporation
Hirdaramani International Export Private Limited
Lenzing Aktiengesellschaft
Indo Tex
Stahl Holdings B.V.,
EPCH
Alix Partners
Mesdan SPA
Chico’ FAS
Sportswear Company Spa
VNU Exhibitions Asia
Lenzing Aktiengesellschaft - India
X-Rite Asia Pacific Limited (HK)
Sainsbury's Argos Asia Limited
G-Star Raw C.V.
Nihalani Events Management
K AND D ITMACH EXPOSITIONS LLP
Desigual - ABASIC, S.A.
Woolmark Services India Pvt. Ltd.
Lululemon Athletica Inc
JES MEDIA, INC
DyStar India Pvt. Ltd
GHCL LIMITED
Etam Group Strategy Hong Kong Limited
Saurer Textile Solutions Pvt. Ltd.
Jiangsu Yingyang Nonwoven Machinery Company Limited
TEXVALLEY MARKET LIMITED
Thai Trade Center
Color Service s.r.l.
Reiter India Private Limited
Italian Trade Commission
Vardhman Textile Ltd
EUROVET ASIA LTD
Boardriders Asia Sourcing Limited
Coats Digital Limited
BRINKMANN GMBH
Green Fibre
TÜYAP IHTISAS FUARLARI A.S.
IIGM Private Limited
N9 World Technologies Private Limited
Rayonese Textile Inc., Division de Culp Inc.
IDH – The Sustainable Trade Initiative
Tradewind International Servicing
Tory Burch Hong Kong Ltd
Tommy Hilfiger
APLF Limited
Midas Clothing Limited
Gokaldas Exports Limited
Zydex Industries
Puma
Recron Polyester from Reliance Industries Limited
Applied DNA Sciences Inc
MAS Active / MAS Kreeda / MAS Bodyline
SYNERGIES HONG KONG LIMITED
TESCO INTERNATIONAL SOURCING LIMITED
KAS Direct Sourcing
Shanghai  Aige Exhibition Service Co., Ltd
Datacolor AG Europe
Truetzschler India Private Limited
Lisa S.P.A.
USTER
GERBER TECHNOLOGY LTD.
Meera Dyestuff Industries
Istanbul Fuarcilik A.S.
Cat Tuong Real Estate Group Joint Stock Company
Decathlon
Benetton Group
Calvin Klein
Weitmann & Konrad GmbH & Co. KG
Colours India Inc
Eurofins BLC Leather Technology Centre Ltd
COTTON COUNCIL INTERNATIONAL
Thai Acrylic Fibre Company Limited
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Newtech Textile Technology Development (Shanghai) Company Limited
TESTEX AG, Swiss Textile Testing Institute
Landmark Group
H. Stoll AG & Company KG
FULGAR SpA
Seasalt Limited
Restoque S.A.
C;&A Sourcing International Ltd
Gloria Jeans
Asos
ZAITEX spa
G.A.S. unternehmenskommunikation gmbh
Brückner Trockentechnik GmbH & Co. KG
Flainox S.r.l.
Chori Company Limited
KIABI
Lottmann Communications
NITI Aayog
J ;& P Coats
Lectra Technologies India Pvt Ltd.
Kornit Digital Asia Pacific Ltd
Sportmaster Ltd.
Lifestyle
Sateri (Jiujiang) Fiber Co.,Ltd
Esprit Europe Services GmbH
Gatsby Africa
Eastman Chemical Company
Hela Clothing Pvt Ltd
Karl Mayer Textilmaschinenfabrik GmbH
International Sourcing Expo Australia
SHAHI Exports Pvt Ltd
Xtema - Thomas Lebherz Textilmaschinen
BTC Textiles LLC
Centric Software
Walmart
FESPA (Reigate)
International Textile Manufacturers Federation
Babyshop
Palexpo SA
CGS Inc.
Deckers Outdoor (Guangzhou) Consultant Co., LTD.
The LYCRA Company Singapore  Pte. Ltd
John Varvatos
Jindal Worldwide Limited
Recron Polyester from Reliance Industries Limited
Aramark Uniform ;& Career Apparel, LLC
UBM China (Shanghai)
IFF Media Ag - International Media Services
Thermore (Far East) Ltd.
Equinox Impex India
LC Waikiki
Bluestem Global Sourcing Limited
Nandan Denim Limited
BIANCA
Pt. Peraga Nusantara Jaya Sakti
NV Michel Van de Wiele
Shima Seiki Mfg. Ltd.
Aleph Srl
Officina Meccanica Dora Enrico Srl
Target Corporation (MN)
Messe Frankfurt Exhibition GmbH
Guess Europe Sagl,
Brandix Lanka Limited
CSGIA(China Screen Printing & Graphic Imaging Association)
Indofil Industries Limited - Specialty & Performance Chemicals Division
Groz-Beckert East Asia LLP
IKEA of Sweden AB
OVS Hong Kong Sourcing Ltd.
Rosset ;& Cia Limited
T.T. Limited
Amazon China
Under Armour Global Sourcing Ltd
Tchibo GmbH
Infor (Hong Kong) Limited
DuPont de Nemours, Inc.,
Helly Hansen Far East Ltd
BIMBA ;& LOLA SL
Haelixa AG
The LYCRA Company Singapore  Pte. Ltd
Inter Expo Center Ltd.
Mayer & Cie. GmbH & Co. KG
Bluesign Technologies Ag
Savio Macchine Tessili S.P.A.
Loris Bellini S.r.l.
Groz-Beckert KG
China World International Exhibition Company Limited
Arvind Limited
Tuyap Tum Fuarcilik Yapim A.S.

May 2022

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


Advanced Search