FROM THE PRESIDENT’S DESK
Dear Friends,
At the outset, a Warm Welcome to Smt. Smriti Irani! Great to have
her back as the Minister in charge of Textiles, in addition to her
Assignment of Women’s Empowerment and Child Development. As
I have said earlier, it is rare to have a Minister who takes the pains
to understand the issues of the Domestic Sector—most Textiles
Ministers are confining themselves to the Export Segment of the
Apparel Industry.
CMAI has initiated several Projects for the coming months—
and always better to have at the helm a Minister who not only
has the background of these initiatives but was involved in its
conceptualisation also. Hopefully, these will now gain momentum.
SS’19 is fast coming to its last phase before the EOSS sets in, and
the CMAI Index clearly shows that the growth rates have slowed
down, and the Small Brands are the worst hit. It only reflects the
Market sentiments which all of us are seeing and sensing.
So what is really happening in the Domestic Sector?
On one hand, there is the inescapable demographic reality that
the overall market size is expanding—with population increasing,
younger generation having a more dominant share of the population,
increasing urbanisation, and overall economic growth. Why, then, is
the Apparel Sector not really booming?
My own reasoning is that whilst economic prosperity is improving—
one can always debate the extent—people are spending more on
other status symbols, and less money is left over for spur-of-the-
moment expenditure such as buying of clothes. Secondly, with
Brands being on some promotional scheme or the other, apart from
the extended EOSS, the average Price Realisation is going down.
Therefore, even if the actual quantity of garments being sold remains
the same, the total expenditure, and hence the sales, is going down
(remember, when someone asks “How is business?” nobody thinks
of the quantity sold—only the value sales.)
There is therefore a sense of distress among most of the Domestic
Manufacturers and Retailers.
Having said this, I still am very optimistic about the long-term future of
the Industry.
It is a question of hanging in there. Those of us who can, and will, will
take the current scenario in their stride. Others may take the easier
option of calling it quits.
RAHUL MEHTA
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4
I APPAREL I
June 2019