Demand for clothes and accessories grows after six sluggish quarters
After nearly six quarters of sluggish growth, demand for clothes and accessories is on a rebound. Sales in the discretionary category have been rising since the last twoweeks. Driven by winter and the upcoming wedding season, demand will continue to remain strong over the next few quarters, says Lalit Agarwal Chairman, V-Mart, a value retailer with nearly 470 stores in smaller towns.
After two years of pandemic-induced growth, sales of discretionary items, including apparel, footwear, and beauty products, began slowing in 2023. Retailers faced weak consumer sentiment, particularly in mass and lower-priced categories, as inflation-strained consumers reduced spending.
However, the first two weeks of October saw promising growth, spurred by the festive season. This momentum is expected to continue upto Diwali, opines Dinesh Taluja, CFO, Reliance Retail. Echoeing his optimism, Ravinder Choudhary, Vice President, Vegas & Unity Group, adds, a rise in wedding-related purchases will lead to an improved outlook for the sector.
As per a recent report by Centrum, recovery in rural market is driving the demand for value apparel which is witnessing 15 per cent sales growth. Consumers at the bottom-of-the pyramid have also started buying again, adds Devarajan Iyer, CEO, Lifestyle International.
However, retailers continue to remain cautious about placing new orders to avoid inventory pileups. Manish Kapoor, Managing Director, Pepe Jeans, emphasiseson a careful inventory management, preferring stock-outs over excess stock. Rising cotton prices, along with higher shipping costs and currency depreciation, have previously contributed to the slowdown in the mass-priced segment, he says.
