South, West markets doing ‘reasonably' well; North yet pick up
Chennai, Oct. 19:
It has been a
mixed bag for apparel retailers in the run-up to Diwali. While the South
and West markets are doing ‘reasonably' well, the North is yet to pick
up.
The mood is certainly not exuberant and overall
buying patterns indicate that inflation is still playing on the minds of
consumers, say analysts and industry players.
Volumes flat
While
sales value has gone up, thanks to the hefty price tags, volumes are
flat or in some cases even lower than last year. “Increase in apparel
prices over the last few months may have shored up ticket sizes, but
volumes remain low. People aren't buying as many clothes as they were
last Diwali,” says Mr Amitabh Suri, Senior Vice-President, Marketing,
Indian Terrain.
And most of the growth is in the value segment, says Mr Arvind Singhal, Chairman, Technopak Advisors.
The South and West are shining for a few brands.
According to Mr Suri, consumers tightened their purse-strings after the
end-of-season discount sale which ended mid-August. “For three weeks
after the season sale, there was a crash with very little buying. But
the market has picked up in the last three weeks leading to Diwali,
especially in the South and West. We are seeing a 125 per cent growth
over the same period last year,” says Mr Suri.
“Typically in the North, people couple Diwali shopping with
winter-buying. With winter yet to set in, people are still waiting
before they stock up for the cold months,” says Mr J. Suresh, Managing
Director, Arvind Brands.
Ms Rachna Aggarwal, CEO,
Indus League, says, “Last year, we started selling jackets and suits for
winter in the beginning of October itself. Besides the delay in winter,
marriage dates have also been pushed to the end of December.” The East,
too, hasn't picked up after the puja season, she adds.
Ethnic wear
The
North is also more skewed towards ethnic wear during Diwali, unlike the
South. Hence, western-wear brands may not have a big role to play, says
Mr Suri.
What happens after the festive season
holds the key to retailers' fortunes. But Mr Singhal, of Technopak,
fears the market will depress further.
The South is
likely to collapse after Diwali before picking up during Pongal in
January, says Mr Suresh. “We hope the northern markets will start
spending after Diwali.”
