Surat textile traders suffer with decrease in the spending power of consumers, which has led to sluggish demand for dress materials as well as readymade garments Even as the festive season is round the corner, demand for garments has not picked up as yet in Surat’s retail market. In fact, demand has gone down to 40% as compared to last year’s 80%. Resultantly, retailers are discouraged from increasing their inventory apprehending low consumer uptake.
 This year textile traders in Surat have become uncertain about the buying trend of retailers across the country, who usually purchase finished fabrics like dress materials by July every year for the upcoming festive season. Consumers begin to shop for readymade garments as well as fabrics in advance for festivals such as Id, Onam, Diwali and Dusshera. However, traders have noticed that unlike other years, this year retailers have not been purchasing products in bulk and consumer demand has also not been promising. Reasons for low uptake
Rising fuel, vegetable and cotton prices and inflation in general have negatively impacted the textile industry as prices of fabrics have also increased, thereby lowering consumer enthusiasm to buy products. Floods in Punjab and Haryana have further added to the woes of Surat textile traders, considering that the two states are major markets for the traders.
Talking about this with a Retailing360 correspondent, Shrikrishna Banka, former president of the Federation of Surat Textile Association, says, “The reason behind sluggish demand for finished goods as well as fabrics is inflation in the Indian market. Instead of clothes and garments, people from lower and middle income groups are now spending money on basic amenities and children’s education.”
According to industry insiders, if this situation persists, manufacturers of unfinished fabrics such as chiffon and georgette will have to cut down production. “Till the time demand for textiles does not increase, manufacturers will have to check production of unfinished fabrics to prevent losses. In fact, some manufacturers might be forced to shut down their units temporarily,” says Jeegar Jariwala, owner of Jariwala Traders, a mid-sized textile company located in Surat. However, Mr Jariwala is hopeful that the situation is expected to improve soon.
Sabrina Mitchell
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