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

Welcome to CMAI

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,     .... Read More