The apparel industry has entered the festive season on a positive note, with 52% of the Cloth Manufacturers Association of India (CMAI) members expecting higher sales than last year. However, there are also concerns among the apparel manufacturers in Tiruppur about rising garment imports from China.

According to a recent survey done by the CMAI among its members, numbering close to 7,000 and including major retailers and brands, close to 30% of the respondents expect the sales this year to match last year’s performance. Just less than 20% expect a decline.

Former president and chief mentor of the CMAI Rahul Mehta told The Hindu that in a prelude to the Deepavali season, the eastern States did well for dussehra sales. However, sales in the southern States for the Navarathri festival was slow and it was sluggish in the north and west. “Despite the textile inflation of 5% to 7%, we think the festival season this year will be better than last year. Raw material prices have started coming down and the global geo political situation is not as bad as it was a few months ago. The sales are expected to pick up across the country closer to Deepavali,” he said.

The CMAI said in a statement that strong order bookings by retailers at the CMAI’s National Garment Fairs (NGFs) have further reinforced the industry confidence. While rising raw-material costs remain a concern among the retailers, around 54 % of the respondents said they were absorbing the costs by reducing margins and only about 35 % have increased the prices. “This indicates that higher festive sales could come with continued pressure on profitability,” the CMAI said.

Indian wear is expected to lead the festive-season growth followed by western casual wear. Online apparel sales are also expected to gain momentum this year.

Meanwhile, according to R. Dhamodharan, secretary of the South India Hosiery Manufacturers Association, “Import of cotton readymade garments from China during April-August this year was worth ₹508.64 crore as against ₹283.65 crore for the same period last year. Several traders are placing orders in China and importing garments now.”

Further, distributors and consumers may not absorb price increase now. “So, the manufacturers (in Tiruppur) are looking at revising the prices after the festival,” he said.