Chill brings cheer to winter wear, demand up 10-15 percent

While a slowdown in the economy and high inflation rate, and low consumer sentiments were a cause for worry in the apparel industry last year, winter wear players were further worried about another factor -- less chilly winters.

They felt it may further affect consumer buying decisions. Fortunately, their fears are over with the worst winter in four decades across north India proving to be a blessing for winter wear manufacturers. With the national capital and the adjoining states of Punjab, Haryana, Uttar Pradesh experiencing very low temperatures, demand for woollen garments went up significantly.

While there was no jump in prices of woollen wear, demand went up by 10-15 percent and business volumes increased by 30 to 40 per cent. And stake holders are optimistic about clocking in better returns while consumers are opting for good quality woolen products.

The winter wear industry witnessed a negative growth of 25 percent last year but it is expecting a 10-15 growth this year. Manufacturers, most of them SMEs, are bullish about the domestic market, which contributes 80-85 percent of their total sales. The industry’s overall revenues are Rs 2,000-2,500 crores and there are 250-300 units, employing more than 100,000 people directly and indirectly.

Woollen shawls, one of the highly sold products during winters, witnessed inventory pile-up last year and to beat the raw material costs, manufacturers have now started blending wool -- the major raw material -- with other materials like viscose, acrylic and polyester. So, there has been no major increase in shawl prices, which is a key reason behind the increase in demand. And thermal wear companies are seeing a boom in business too, since the accumulated stocks with the manufacturers have also been cleared.