CMAI sees strong festive apparel demand, led by ethnic wear

In CMAI’s survey, 52% of members expect festive-season sales to exceed last year, while 30% expect sales to be flat. Ethnic wear is seen as the strongest category, but input-cost inflation remains a margin pressure as most manufacturers absorb costs.

— Source publishedMon, 7 Sept, 2026, 20:10 IST·First seen Mon, 7 Sept, 2026, 20:15 IST·Source The Hindu BusinessLine

What happened

Clothing Manufacturers Association of India (CMAI) · CMAI expects a strong Indian apparel festival season, led by ethnic wear and supported by retailer order

Key facts

  • 52% of CMAI members expect higher sales than last year
  • 30% expect sales to match last year
  • Less than 20% expect a sales decline
  • 54% are absorbing higher input costs through reduced margins
  • About 35% have raised prices
  • 45% identify Indian ethnic wear as the strongest festive category
  • Online accounts for around 12% of apparel sales

Why this matters

Ethnic wear brands, sourcing platforms and cost-efficient manufacturers may be attractive partnership or acquisition targets as festive demand strengthens and margin pressure rewards scale.

What to watch

  • Weekly ethnic-wear sell-through, stockouts and replenishment lead times versus western and casual apparel.
  • Cotton, polyester, yarn, dyes, freight and wage-cost trends relative to retail price increases.
  • Discount rates and post-festival inventory levels, especially in value and mid-market channels.
  • Consumer spending indicators in tier-2 and tier-3 cities, where festive apparel demand can be highly sensitive to inflation.
  • Management commentary on gross margin, vendor payment terms and planned price increases.
  • Increase ethnic-wear assortment depth, regionalize designs and secure replenishment capacity for fast-selling festive styles.
  • Prioritize margin actions that are less visible than broad price hikes: fabric mix optimization, tighter SKU rationalization, lower markdown exposure and vendor negotiations.
  • Use targeted rather than blanket promotions to preserve realized prices during peak festive weeks.
  • Monitor supplier financial stress and delivery reliability as widespread cost absorption may constrain working capital and future production.
  • Retailers with private labels may use stronger festive demand to renegotiate sourcing terms, potentially shifting margin pressure further upstream.

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