Apparel July 2019 Apparel July 2019 issue | Page 74

CMAI’S APPAREL INDEX
APPAREL NDEX
At 1.71 points, the CMAI Index for Q4, January-March FY 2018–19, records the
lowest growth in five years.
CMAI’s Apparel Index for Q4 (January-March FY
2018–2019) clearly reflects that growth in the
sector has been falling continuously for the past
five years. The Annual Index value of FY 2018-19
has dipped to a scale of 1.71, the lowest ever in
five years.
Annual Year
14-15
15-16
16-17
17-18
18-19
Index Value
7.28
5.32
3.43
2.56
1.71
Comparatively, the Annual Index in FY 2017–18
was 2.56; in FY 2016–17, it was 3.43 points.
Similarly in FY 2015–16, it was 5.32 points, and in
FY 2014–15, it was 7.28 points. The table clearly
shows how the index has been continuously falling
over the years. FY 2018–19 was marked by a
low business sentiment even during the festive
season, which is perceived as the best time to
make up for turnover losses, as buying is high at
that time of the year. Except for the first quarter of
FY 2018–19, the index values were much lower
than comparable quarters in the previous fiscal
(FY 2017–18).
When asked about the reasons for the
continuous fall in growth rate in the last five years,
Rahul Mehta, President, CMAI, said that the
industry needs to understand the changes in the
overall scenario, such as the change in spending
behaviour; earlier, people used to save money and
expend on their wants, and fashion was one of
them, whereas today’s generation has to take care
of so many other expenses that include rented
accommodation, Equated Monthly Instalments
(EMIs), etc; so the budget available for fashion-
and apparel- buying is going down. The buying
behaviour of the youth itself is changing. They
are spending far more on electronic gadgets and
entertainment. Also, with cash liquidity dropping,
impulse buying is affected. One more important
aspect—since the Average Selling Price (ASP) of
most apparel products has been dropping over
the years, the growth in value seems to
be impacted.
GROWTH DIPS IN Q4 FY 2018-19 TOO
CMAl’s Q4 Apparel Index touched 1.55 points,
64
I APPAREL I
July 2019
a clear reflection of low growth, compared to the
previous quarter, with an index of 1.87.
Brand Group
Giant Brands
Large Brands
Mid Brands
Small Brands
Q3 2018-2019
6.00
2.06
3.32
1.37
Q4 2018-2019
5.25
6.93
0.63
0.63
Brand Group-wise Apparel Index Comparison
As earlier, Small Brands’ sales dipped this quarter,
as shown in the table above, and Giant Brands
at 5.25 points, too, reported a drop in growth,
compared to the last quarter’s index figure of six
points. Except Large Brands’ skyrocketing growth
from 2.06 points in the previous quarter to 6.93
points in Q4, all other brand groups reported a dip
over the last quarter.
Big Brands (Mid, Large, and Giant together) have
grown at 6.08 points, which is much more than the
3.52 points of the previous quarter. This is because
they have been pushed ahead to reach 6.93 (over
three times) from their previous quarter’s 2.06
points. Individually, Small and Mid Brands dipped
badly, both to 0.63 from their previous quarter index
values. Giant Brands, too, have lost growth at 5.25
from six points previously.
SALES TURNOVER DOWN AS INVENTORY
HOLDING GOES UP
If sales turnovers were to be considered, the only
parameter for determining the Apparel Index this
quarter, the overall index would have reflected a
growth of 0.52, which is lesser than the previous
quarter’s 0.88.
Around 39 per cent brands reported an increase
in the sales turnover this quarter, as compared
to 48 per cent in the previous quarter. French
menswear brand Celio reported a positive sales
turnover as Satyen Momaya, CEO, Celio, points out.
“The increase in the sales turnover was due to our
quality, and we worked on an auto-replenish model
across our channels.” Similarly, lifestyle brand Monte
Carlo gave a positive feedback as Mayank Jain,
General Manager of the brand, explains. He says,
“The reason for an increase in the sales turnover
is that we had a strong and good winter. Weather
conditions were good and winter lasted for a longer
period.” Shitanshu Jhunjhunwala, Director, Turtle,
adds, “The increase in the sales turnover was due