Branded apparel manufacturers are expecting a higher sales growth of 25-30 per cent, in both value and volume terms, during the festival season this year, between September and December. Sales during the festival season – which typically starts with Onam in Kerala – account for almost 35-40 per cent of the annual revenue of a company, senior industry experts said.
This is despite a 10-20 per cent rise in the price of merchandise on account of an increase in cotton prices, higher excise duty and inflationary pressures. Though cotton prices have softened now, this would not reflect in the retail price as companies placed their orders six-eight months ago when input prices were at their peak.
“The sales have been buoyant over the last four-to-five months and the sentiment looks good. Given this trend we hope to clock 25-30 per cent sales during the festival season this year,” said Mr Atul Chand, Chief Executive Officer, ITC Wills Lifestyle.
Wills Lifestyle plans to expand its network to tap this growth. The company, which has 77 stores at present, plans to add 13 more stores by the end of this fiscal.
The rise in disposable incomes would push the sales, said Mr Ashwani Misra, President (Marketing), Reid and Taylor.
“We have had a 35 per cent growth in sales on a month-on-month basis. Typically, for us, the lower end of the fabric priced Rs 250-400 per metre sells more during the festive season. This is set to grow by 35 per cent this year,” he said.
The only dampener to the sales, if any, could be the extended monsoons in some parts of the country this year; consumers have already factored in the inflation and the high interest rates, said Mr P. S. Rajiv, Head-Retail (EBOs), Arvind Ltd.
Mr Prasad Pabrekar, Managing Director, Spykar Jeans, said, “Though there has been a 20 per cent rise in price of our merchandise, that is true for all other brands. So a consumer will have little choice but to buy his favourite brand.” The eastern region accounts for about 15-17 per cent of Spykar's total sales during the festival season.