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 147 in September 2019, recording a sudden decline of 9 percent as compared to that in August 2019. The apparel CPI has remained constant for the past six months at a value of 149. The apparel exports in September 2019 stood at $1,081mn, showing a decrease of 14 percent from that in August 2019 and 2 percent decrease from that in September 2018. The apparel exports to the largest market USA increased, however, the apparel exports to other major markets declined. The provisional data for October 2019 indicates 3 percent growth as compared to September 2019.
The apparel imports in September 2019 stood at $117 mn, which is 4 percent higher than that in September 2018 but 7 percent lower than that in August 2019. Apparel imports from Bangladesh, the largest apparel exporter to India, has increased by 20 percent in Apr-Sep 2019 as compared to that in Apr-Sep 2018. India’s imports from China, Hong Kong, Vietnam, etc. have also increased. 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 at147 in September 2019, recording a sudden decline of 9 percent as compared to that in August 2019
• The apparel IIP in September was lowest in the first two quarters of FY 20
Apparel Consumer Price Index (CPI) Update
• The Apparel CPI has remained constant for the past six months at a value of 149
• As compared to October 2018, the apparel CPI showed an increase of 2 percent in October 2019
Monthly Apparel Exports Update
• The apparel exports in September 2019 stood at $1,081 mn, showing a decrease of 14 percent from that in August 2019
• As compared to September 2018, the apparel exports decreased by 2 percent in September 2019
• The provisional data for October 2019 indicates an increase of 3 percent on MoM basis and a decrease 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- Sep 2019 as compared to that in Apr-Sep 2018
• The apparel exports to Saudi Arab also increased by 49 percent during the same period
• However, the apparel exports to other major markets declined, especially to Germany
Monthly Apparel Imports Update
• The apparel imports in September 2019 stood at $117 mn as compared to $113mn in September 2018
• The apparel imports in September 2019 showed an increase of 4 percent as compared to that in September 2018, while a decrease of 7 percent as compared
to that in August 2019
• The provisional data for October 2019 indicates a growth of 2 percent on YoY basis and a decline of 4 percent on MoM basis
Country wise Apparel Imports Update
• Apparel imports from Bangladesh, the largest apparel exporter to India, has increased by 20 percent in Apr-Sep 2019 as compared to that in Apr-Sep 2018
• India has also reported an increase in its apparel imports from other nations such as China, Hong Kong, Vietnam, etc., however, the increment in value
terms is low
• India’s apparel imports from Sri Lanka has shown a significant decline of 36 percent.
