28 September 2023, Mumbai
The Wazir Advisors September 2023 report shows that Western apparel imports and India's exports remained stagnant in June and July, compared to August 2022, with domestic retail sales faring better.
Key findings:
- Western apparel imports remained low in June and July, with the US and UK showing the sharpest declines.
- India's apparel exports continued to lose ground in June and July, with shipments to the US down 22% in August 2023 compared to August 2022.
- Domestic retail sales fared better than imports in the UK and US, with online sales of clothing growing 10% in the UK in Q2 2023 and monthly apparel store sales up 3% in the UK in July 2023.
Analysis:
The weak Western apparel market is likely due to a number of factors, including high inflation, rising interest rates, and consumer caution about spending. This is challenging for Indian apparel exporters, who rely heavily on the Western market.
However, the domestic retail market in India is expected to remain relatively resilient, supported by a growing middle class and rising disposable incomes. This could provide some relief for Indian apparel exporters in the near-term.
Outlook:
Domestic Retail Sales Fare Better; The Report suggests that the Western apparel market is likely to remain weak in the near-term.
Indian apparel exporters should focus on diversifying their markets and developing new products and services to meet the changing needs of consumers.
The domestic retail market in India is expected to remain relatively resilient, but apparel exporters should still be mindful of the potential for a slowdown in consumer spending if the global economy weakens further.
Recommendations:
- Indian apparel exporters should focus on diversifying their markets and developing new products and services to meet the changing needs of consumers.
- The Indian government should continue to support the apparel sector through initiatives such as trade promotion and export subsidies.
- Domestic apparel retailers should focus on improving the customer experience and offering a wider range of products to meet the needs of different consumer segments.
5 key insights:
- Western apparel imports stagnant
- India's apparel exports lose ground
- Domestic retail sales fare better
- Indian exporters should diversify
- Domestic retailers should improve CX
