58th NGF breaths optimism despite slowdown

The 58th edition of National Garment Fair (NGF) organized by the Clothing Manufacturers Association of India (CMAI) concluded in Mumbai on this Wednesday. There was a sense of optimism among exhibitors exploring opportunities amid cautious visitors. Commenting on the sentiment seen during the fair,

Rahul Mehta, President, CMAI said, “I gather that the markets have been a bit slow. The estimation of summer bookings so far is showing a drop of 15 to 20 percent over last summer. It could be partly because winter set in late and so stocks started moving late. There could also be a psychological holding back by retailers.”

However, he was more positive about the booking season, “By January end most stocks will move out. Although winter was late it is quite severe. I am sure goods are now flying off the shelves even at discounted rates. But retailers will get rid of inventory. So I expect a late upswing. By season’s end we should be back to normal.”

Exhibitors cautious

Exhibitors felt despite the slowdown, the response at the fair was better than expected. As Sharmila Nadkarni, MD, Desi Belle says, “Our brand is fairly new but the response has been good. Last season, walk-ins were low. But this fair is quite crowded even though most of it is curiosity. There is a certain amount of nervousness in the market.”

Reiterating similar sentiment, Haresh Mehta, Director, D& J Worldwide Apparels, (Four One Oh), says, “We got good inquiries and have done some bookings at the fair. We look forward to do more business after the event as our products have been highly appreciated by retailers.”

However, it was obvious that the industry is stepping cautiously owing to the uncertainty. There has been a downtrend of 10 to 15 percent since last season. The market is skeptical about sales in large format stores, MBOs with people buying during the sale season or close to the season because they want to have quick turnaround.

While Nadkarni advocates a fair pricing policy, she feels since the trend is towards catering to the deals of the day, its changing the customer’s psyche. “Rather than knowing the real value of the product, the customer is excited about what he’s getting in return,” she states.

With slowdown in mind, players have tried to work around their product pricing by introducing a low priced range with fresh concepts. Explains Ratnesh Baronia, Director, Oil and Grease, “We have made changes in our collections and have introduced a basic line in twelve to fifteen colours, where prices are lower. Though the market is in recession, our bookings have been good.”

However Kamlesh K Nanda, Director, Fayon Troupe, a first timer at CMAI fair says, “CMAI is a good platform to showcase your brand but because of the slow season fewer buyers may be coming in.” Garment purchases are no longer seasonal. People buy when they feel like it. “The craze for buying on occasions no longer exists,” avers Dinesh P Agarwal, Director, Mexico.

What’s holding back retailers?

Rahul Mehta feels, since excise on branded apparels was withdrawn only in March 2013, a lot of goods have already gone into stores with old prices. “So many manufacturers were able to reduce prices only for Autumn/Winter. Prices haven’t gone up to the extent that other industries have seen. Things are reasonably under control. With end of season sales, people are buying at far more competitive rates. The slowdown is because of people buying less at full prices and buying more at discounted prices. I don’t think overall consumption has gone down,” he opines.

With about 165 brands present at the fair, Mehta says that despite lower footfalls, business remained satisfactory. The forthcoming edition of NGF would be held from June 23 to 25, 2014. Divulging details, Mehta said, “It’s been advanced since people want a longer lead time before the festive season. Also, there is a demand for ready stock sales and larger brands want to book more in advance. CMAI is trying for early bookings for January and July fairs. By 2015, we hope to have it in the first week of June and are debating whether to have the January fair in December,” Mehta sums up.