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.
In 2019, the apparel IIP showed an upward trend for the first three months, after which it declined significantly to a value of 138 in October. Although, the IIP recovered a bit in July, it continued to decline for the remaining months. The apparel CPI has remained fairly constant in 2019 at an average value of 149. The apparel exports in FY 19 stood at $16,156 mn, showing a decrease of 3 percent from that in FY 18. In FY 20 (Apr-Nov), the apparel exports showed a minute increase of 1 percent as compared to that in FY 19 (Apr-Nov). The apparel exports to the largest market USA increased by 6 percent, 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 FY 19 stood at $1,106 mn, showing a significant increase of 43 percent from that in FY 18. In FY 20 (Apr-Nov), the apparel imports showed an increase of 8 percent as compared to that in FY 19 (Apr- Nov). 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
• In 2019, the apparel IIP showed an upward trend for the first three months, after which it declined significantly to a value of 138 in October
• Although, the IIP recovered a bit in July, it continued to decline for the remaining months
Apparel Consumer Price Index (CPI) Update
• The apparel CPI has remained fairly constant in 2019 at an average value of 149
• As compared to 2018, the CPI has not shown any significant inflation
Apparel Exports Update
• The apparel exports in FY 19 stood at $16,156 mn, showing a decrease of 3 percent from that in FY 18
• In FY 20 (Apr-Nov), the apparel exports showed a minute increase of 1 percent as compared to that in FY 19 (Apr-Nov)
Country wise Apparel Exports Update
• The apparel exports to the largest market USA increased by 6 percent in Apr-Nov FY 20 as compared to that in Apr-Nov FY 19
• 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
Major Export Markets
• The share of India’s largest export market, USA, has increased by 3 percent in FY 19 as compared to that in FY 18. This share has further increased to 27 percent in FY 20 (Apr-Nov)
• On the contrary, the share of UAE has reduced by 5 percent in FY19
Apparel Imports Update
• The apparel imports in FY 19 stood at $1,106 mn, showing a significant increase of 43 percent from that in FY 18
• In FY 20 (Apr-Nov), the apparel imports showed an increase of8 percent as compared to that in FY 19 (Apr-Nov)
Country wise Apparel Imports Update
• Apparel imports from Bangladesh, the largest apparel exporter to India, has increased by 13 percent in Apr-Nov FY 20 as compared to that in Apr- Nov FY 19
• India has also reported an increase of 11 percent in its apparel imports from China
• India’s apparel imports from Sri Lanka have shown a significant decline of 38 percent
Major Supplying Nations
• In FY 19, Bangladesh surpassed China to become the largest supplier of apparel to India with a share of 33 percent in India’s apparel imports. This share has increased to 34 percent in FY 20 (Apr-Nov)
• China’s share in India’s imports has reduced from 38 percent in FY 18 to 27 percent in FY 19
• The share of Hong Kong is increasing, while those of Spain and Turkey are decreasing continuously.