CMAI Apparel Index dips to 1.87 points in Q2, GST affects sentiment

Q2 is the first quarter post-GST. And much like other sectors, apparel brands and retailers too were busy putting GST processes in place and sales suffered a big blow. July was the first month when the industry emerged after clearing pre-GST inventories. Interestingly, GST augured well for organized players, as bigger brands and organized players were quick to adapt, and this is evident in the apparel index of various brand groups. Bigger the brand group, higher the growth in this quarter. Giant Brands (turnover above Rs 300 crore) clocked in 8.72 points, followed by Large Brands at 6.65 and Mid Brands 1.25 points; Small Brands which are generally managed by owners single-handedly recorded the lowest index growth of just 0.29 points.