CMAl’s Apparel Index aims to set a benchmark for the entire domestic apparel industry and helps brands in taking informed business decisions. For investors, industry players, stakeholders and policy makers, the index is a useful tool offering concrete and credible information and is an excellent source for assessing the performance of the industry. The Index is analysed on assessing the performance on four parameters: Sales turnover, sell through (percentage of fresh stocks sold), number of days of inventory holding, and investments (signifying future confidence) in brand development and brand building.
The apparel IIP was valued at 139 in November 2019, recording an increase of 3 percent as compared to that in November 2018 and an increase of 1 percent as compared to that in October 2019. The apparel CPI has remained constant at a value of 150 in December 2019, while it recorded a minute increase of 1 percent as compared to that in December 2018. The apparel exports in November 2019 stood at $1,059 mn, showing a 5 percent decrease from that in October 2019 and 6 percent decrease from that in November 2018.
The apparel exports to the largest market USA increased by 6 percent in Apr-Nov 2019 as compared to that in Apr-Nov 2018, while those to Saudi Arab and Nigeria increased by 47 percent and 68 percent, respectively. However, the apparel exports to other major markets declined. The apparel imports in November 2019 stood at $104 mn, showing a 7 percent decrease from that in October 2019 and 11 percent increase from that in November 2018. Apparel imports from Bangladesh, the largest apparel exporter to India, has increased by 13 percent in Apr-Nov 2019 as compared to that in Apr-Nov 2018. India’s imports from China have also increased by 11 percent. Analysis of financial filings of select apparel manufacturers and fashion brands & retailers for Q2 FY 2020 over Q2 FY 2019 highlights the following:
• Most of the companies have shown an increase in their operating revenue
• The fashion brands & retailers have shown an improvement in their Operating Profit Margin (OPM) with V2 Retail’s OPM showing a significant improvement from -18.1 percent in Q2 FY 2019 to 2.5 percent in Q2 FY 2020
• Majority of the apparel manufacturers have shown a decline in their OPM. However, Celebrity Fashion has shown a significant improvement in its OPM from 4.5 percent in Q2 FY 2019 to 32.4 percent in Q2 FY 2020
Apparel Index of Industrial Production (IIP) Update
• The apparel IIP was valued at 139 in November 2019, recording an increase of 3 percent as compared to that in November 2018
• As compared to October 2019, the apparel IIP showed a minute increase of 1 percent in November 2019
Apparel Consumer Price Index (CPI) Update
• The apparel CPI has remained constant at a value of 150 in December 2019
• As compared to December 2018, the apparel CPI showed a minute increase of 1 percent in December 2019
Monthly Apparel Exports Update
• The apparel exports in November 2019 stood at $1,059 mn, showing a decrease of 5 percent from that in October 2019
• As compared to November 2018, the apparel exports decreased by 6 percent in November 2019
• The provisional data for December 2019 indicates a significant increase of 33 percent on MoM basis and an increase of 2 percent on YoY basis
Country wise Apparel Exports Update
• The apparel exports to the largest market USA increased by 6 percent in Apr- Nov 2019 as compared to that in Apr-Nov 2018
• The apparel exports to Saudi Arab and Nigeria also increased by 47 percent and 68 percent, respectively during the same period
• However, the apparel exports to other major markets declined, especially to Germany
Monthly Apparel Imports Update
• The apparel imports in November 2019 stood at $104 mn, showing a decrease of 7 percent from that in October 2019
• As compared to November 2018, the apparel imports increased by 11 percent in November 2019
• The provisional data for December indicates a growth of 12 percent on YoY basis and a decline of 8 percent on MoM basis
Country wise Apparel Imports Update
• Apparel imports from Bangladesh, the largest apparel exporter to India, has increased by 13 percent in Apr-Nov 2019 as compared to that in Apr-Nov 2018
• India has also reported an increase of 11 percent in its apparel imports from China
• India’s apparel imports from Sri Lanka has shown a significant decline of 38 percent