CMAI survey signals confident festive season for apparel, led by Indian wear
More than half of CMAI members expect festive sales to rise year on year, with Indian wear identified as the strongest category. Demand optimism is tempered by raw-material inflation: 54% of respondents are absorbing higher costs through lower margins, while about 35% have raised prices.
What happened
Clothing Manufacturers Association of India (CMAI) · CMAI survey signals a positive Indian festive apparel outlook: 52% of members expect sales growth, led by
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 raw-material costs through lower margins
- About 35% have increased prices
- 45% identify Indian wear as the strongest festive category
- Online apparel accounts for around 12% of apparel sales
- CMAI has over 7,000 members and serves more than 50,000 retailers
Why this matters
Indian wear’s demand strength makes category-focused partnerships or acquisitions more attractive, though targets with pricing power and efficient sourcing should be prioritized.
What to watch
- Early festive-week footfall, conversion and average selling price versus last year.
- Indian-wear sell-through rates and replenishment orders relative to westernwear and casualwear.
- Cotton, polyester, yarn, freight and currency movements that determine whether further price increases are needed.
- Promotion intensity, marketplace discounting and end-of-season inventory levels.
- Urban versus tier-2/tier-3 demand trends, with particular attention to rural discretionary spending and wedding bookings.
- Management commentary on gross margin, markdowns and inventory turns in upcoming quarterly updates.
- Increase depth and speed of replenishment in Indian wear, festive capsule collections, wedding assortments and coordinated family offerings.
- Use tiered pricing: absorb costs in high-volume entry products while passing through increases in differentiated premium styles and occasion wear.
- Tighten open-to-buy commitments for slower westernwear and fashion-risk categories until early festive sell-through is visible.
- Shift marketing toward regional festivals, wedding calendars, omnichannel try-on and bundled accessories to raise basket sizes.
- Secure fabric and trim supply through earlier procurement, vendor negotiations and selective material substitution to limit further gross-margin erosion.