CMAI Survey Signals Strong Festive Outlook for Apparel

Apparel Sector Enters Festive Season with Strong Confidence: CMAI Survey

India’s apparel industry is heading into the festive season with positive expectations, with 52% of members of The Clothing Manufacturers Association of India (CMAI) anticipating higher sales compared with last year. A further 30% expect sales to remain at similar levels, while fewer than 20% foresee a decline, according to a recent CMAI member survey.

The positive outlook is supported by improving macroeconomic conditions, a favourable monsoon, stronger consumer sentiment and expectations that two major global conflicts could move closer to resolution. Strong order bookings from retailers at CMAI’s recently concluded National Garment Fairs (NGFs) have also strengthened industry confidence ahead of the festive period.

Despite the optimism around demand, rising raw-material costs remain a key challenge for apparel companies. Around 54% of respondents said they are absorbing increased costs through lower margins, while approximately 35% have passed on the higher costs through price increases. This suggests that stronger festive sales may not necessarily translate into equivalent gains in profitability.

Indian Wear Expected to Lead Festive Demand

Indian wear is projected to be the strongest-performing apparel category during the festive season, with 45% of respondents identifying products such as salwar suits, churidars and kurtas as key growth drivers. Western casual wear, including T-shirts and denim, is expected to follow.

Online Channels Gain Momentum

The survey also points to continued growth in online apparel shopping during the festive period. While online channels currently contribute around 12% of total apparel sales, their expected momentum indicates a gradual shift in festive shopping behaviour and challenges the traditional dominance of offline retail during the season.

Overall, the CMAI survey reflects a positive festive outlook for India’s apparel sector, supported by stronger demand, consumer confidence and retail order bookings. However, elevated input costs and pressure on margins remain important concerns for manufacturers and brands as the industry enters its key selling period.