Indians trim shopping budgets for wedding amid high inflation
1 min read 28 Jun 2023, 02:15 PM ISTMuch like other industries, apparel makers, too, have been witnessing unusually high raw material inflation that has driven up prices for consumers
PremiumNew Delhi: India’s big fat wedding shopping isn’t cutting it this season, with a majority of traders surveyed by industry association Clothing Manufacturing Association of India (CMAI) reporting average-to-poor sales.
CMAI surveyed over 100 wedding clothing manufacturers to assess consumer demand in the recently concluded wedding season in May and June. “As many as 77% of the survey respondents indicated average to poor sales in the past season. More than 60% of the respondents attributed the weak performance to the general economic slowdown, while 14% attributed it to high prices. However, 13% respondents felt the lesser number of auspicious dates as compared to the previous season contributed to the drop in sales," according to the findings of the survey released Wednesday.
India’s wedding market is a huge driver of sales for the apparel and jewellery industry.
Over 80% of respondents reported “no growth“ as compared to the previous season. Meanwhile, consumers opted for cheaper fabrics and outfits.
“Most respondents (40%) indicated a drop in sales of 10%- 25% over the previous year. A large majority, almost 85% of the respondents, indicated that economically priced products fared better than the more expensive varieties. Lighter embroideries and pastel colours were more in demand as per the survey results," they said.
The market is witnessing a “fairly significant" slowdown driven by high inflation, said Rajesh Masand, president, CMAI. “The first quarter of the current financial year is likely to be disappointing for the industry, and the impact is being felt by both the value as well as the upper segments of consumers," Masand said.
Meanwhile, consumer preferences are changing too. “Exposure to western culture with accessibility to content over social media platforms are influencing the dressing patterns, and fashion sense amongst the youth, which is causing a gradual shift from traditional clothing to western clothing especially in the women’s wear segment. On the other hand, some sort of a ‘return to tradition’ is being seen in the men’s wear segment, with more men wanting to wear traditional clothing during festivals and weddings," said Rahul Mehta, chief mentor, CMAI.
Much like other industries, apparel makers, too, have been witnessing unusually high raw material inflation that has driven up prices for consumers; this is despite consumers returning to stores. CMAI estimates that the apparel industry grew between 15% and 20% last fiscal. “With the costs of raw materials as well over all cost of production up substantially, growth has been entirely price-led, and the volumes would still be below the previous year by 3-5%," CMAI said.
