The Wedding Industry Under Fire: CMAI Survey Exposes the Lack of Growth for of Wedding Clothing Manufacturers 2023

The Wedding Industry Under Fire: CMAI Survey Exposes the Lack of Growth for of Wedding Clothing Manufacturers 2023

Ease of Doing Business for MSMEs: According to almost 60% of respondents, the economic recession was the leading cause of the weak sales, while 14% said that the high cost of wedding attire was to blame.

The wedding industry has long been associated with opulence, luxury, and celebrations of love. However, recent findings from a survey conducted by the Clothing Manufacturers Association of India (CMAI) shed light on the challenges wedding clothing manufacturers face. The survey indicates that 83% of manufacturers reported ‘no growth’ during the wedding season.

This revelation serves as a wake-up call for industry stakeholders, urging them to examine the factors contributing to this downturn and explore strategies for revitalization.

According to a survey of 100 wedding apparel makers in the nation, an astounding 83% of respondents said there was “no growth” in the wedding season this year compared to the season in 2022. 77% of the wedding clothes makers said that their sales during the wedding seasons this year were ordinary to low, according to a recent poll by the apparel manufacturers’ representative organization, the Clothes Manufacturing Association of India (CMAI), released on Wednesday.

According to almost 60% of respondents, the recession in the economy was the leading cause of the weak sales, while just 14% blamed the high cost of wedding attire. About 13% of the responders said the reduction was caused by fewer lucky days this season than before.

The CMAI survey aimed to assess the performance of wedding clothing manufacturers during the wedding season, which is typically a high-demand period. The survey covered a broad spectrum of manufacturers across India and encompassed various segments, including bridal wear, groom wear, bridesmaid dresses, and ethnic wear.

Additionally, between 40% and 50% of the manufacturers reported a reduction in their year-over-year sales. Further, 85% of the respondents stated that items with lower prices outperformed those with higher prices.

About 70% of the overall loss was in the women’s sector, while 30% was in the men’s wear category. According to Rahul Mehta, Chief Mentor of the Clothing Manufacturing Association of India, a successful winter wedding season (December to February) may have raised manufacturers’ expectations, so they noticed a fall in sales.

According to a survey by the Confederation of All India Traders (CAIT) in 2022, 32 lakh weddings occurred between the 14th of November and the 14th of December of the previous year. All expenses incurred within this little time were around Rs 3.75 lakh crores.

Key Findings:

1. Stagnant Growth: The most concerning result of the survey was the revelation that 83% of wedding clothing manufacturers experienced ‘no growth’ during the wedding season. This lack of growth indicates a significant downturn in a typically lucrative period for the industry.
2. Economic Factors: The survey suggests several economic factors contributed to the lack of growth. Rising production costs, inflation, and increased competition have made it difficult for manufacturers to sustain profitability. Additionally, the COVID-19 pandemic and subsequent restrictions on gatherings have significantly impacted the number of weddings, reducing demand for wedding attire.
3. Changing Consumer Preferences: Evolving consumer preferences have played a crucial role in the industry’s stagnant growth. Modern couples increasingly opt for smaller, more intimate weddings that require less elaborate and expensive attire. Moreover, there has been a shift towards sustainable and eco-friendly fashion choices, challenging traditional wedding clothing manufacturers to adapt and cater to this emerging trend.
4. Intensified Competition: The survey also highlighted the intensifying competition within the wedding clothing market. Increased globalization, the rise of e-commerce, and the entry of new players have significantly disrupted the traditional supply chain. Wedding clothing manufacturers face stiff competition from online retailers, mass-produced imports, and designer boutiques.

In light of the survey results, industry stakeholders must devise strategies to revive growth in the wedding clothing sector:

1. Diversification and Innovation: Manufacturers should diversify their product offerings to cater to changing consumer preferences. This could involve incorporating sustainable and eco-friendly materials, designing affordable wedding attire for smaller ceremonies, and exploring new styles and designs that appeal to modern couples.
2. Collaborations and Partnerships: Collaboration with fashion designers, bridal stylists, and wedding planners can help manufacturers gain exposure and tap into a broader customer base. By working together, they can create unique experiences and offer personalized services that differentiate them from competitors.
3. Online Presence and Marketing: Wedding clothing manufacturers should enhance their online presence through dedicated e-commerce platforms, social media engagement, and digital marketing strategies. This will help them reach a broader audience, particularly tech-savvy millennials and Gen Z customers who prefer online shopping.
4. Embracing Technology: Manufacturers should leverage technology to streamline production processes, reduce costs, and enhance efficiency. Automation, data analytics, and artificial intelligence can assist in forecasting trends, optimizing inventory management, and improving customer experience.
5. Industry Collaborations and Support: Trade associations, such as the CMAI, should collaborate with manufacturers, designers, and policymakers to address the challenges faced by the industry. Advocacy efforts can focus on securing government support, implementing favourable policies, and organizing industry events to boost awareness and demand.

According to data from the World Population Prospects, India has the youngest population in the world, with an average age of 28.2. As a result, the wedding industry is significant. In addition, India has 50 crore unmarried individuals, according to Matrimony.com’s investor update, which was quoted in a CNBCTV18 story in November 2021.

Additionally, the statistics website Statista reports that ethnic wear accounted for 32% of all Indians’ spending on clothes. Further, CRISIL Research anticipated that the market for garments for weddings and other celebrations in India would be worth around Rs 1,020 billion in FY20.

The CMAI survey has shed light on the struggling state of the wedding clothing industry, with 83% of manufacturers reporting ‘no growth’ during the wedding season. Economic factors, changing consumer preferences, and intensified competition contributed to this downturn. However, by embracing diversification, innovation, collaborations, online marketing, and technology, wedding clothing manufacturers can navigate these challenges and revitalize the industry. With proactive measures and collective efforts, the industry can adapt to evolving trends and recapture its position as a critical player in the wedding market.