India’s apparel industry looks to drive growth with festive season sales
07 October 2021, Mumbai:
The festive season in India comes as a silver lining amongst the dark COVID-19 clouds that rattled the textile market over the last two years. Not just India, the crisis shook businesses across the world as shops remained closed.
To stay afloat, some retailers shifted their business online while others stuck to physical stores. The festive season presents an opportunity to boost sales. Most people buy new clothes during the season, sending apparel sales to unprecedented heights.
Not just physical retailers but also e-commerce players look forward to this season as an opportunity to attract new customers, says a BW Disrupt report.
Intense competition drive online sales
Realizing the importance of this season, e-commerce players introduce attractive discounts and offers on their platforms. There is intense competition amongst players to attract maximum number of customers. Last season saw almost 75 per cent fashion revenues coming from online sales, a result of a change in mindset of Indian customers. Customers across age groups are driven towards online mode of shopping due to its convenience and transparency.
Rising exports and PLI scheme to drive market growth
Worth $100 billion in FY19, the domestic textiles and apparel market is likely to grow to $190 billion by FY26, as per India Brand Equity Foundation. Rising exports are expected to uplift not just the domestic but also global textile market. Renowned for their unique designs and intricate details, India’s textile exports are likely to grow around 25 per cent this year, as per a recent ICRA report.
The newly introduced PLI scheme has reduced taxes on raw materials, encouraging more entrepreneurs to invest in the textile business. Reduction in raw materials costs will automatically decrease fabric and price of end garment. This will enable more customers to purchase these products.
Building businesses with festive sales
Discounts are the best way to boost festive sales, believe retailers. Online retailers regularly use discounts to attract new customers and broaden their client base. These discounts help them attract value seekers looking for good quality products at low prices.
Even difficult times can help retailers grow their business by maintaining a positive outlook, and planning and executing sales carefully. They can use the festive season to convert their current losses into profits and build future business.
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