The famous hosiery cluster of Ludhiana in Punjab is running into losses due to low procurement of garments due to delayed winter as retailers are already stocked with huge stocks of winter clothing.
Weak demand for cold weather clothing has forced the hosiery industry to offer discounts in early December to attract customers and clear stocks at retail counters.
Otherwise, big brands in the hosiery sector start giving discounts in the last week of December or first week of January, says the industry.
October, November and December are considered critical months for the hosiery sector in Ludhiana, which is one of the oldest clusters in the country.
The major markets for the hosiery industry are Punjab, Haryana, Delhi, Himachal Pradesh, Uttar Pradesh, Rajasthan, Jammu and Kashmir, Bihar and some North Eastern states.
This industry is famous for winter garments like jackets, sweaters, thermals, cardigans, pullovers, inner wear, shawls etc.
“The hosiery sector in Ludhiana is facing a tough time because of the delayed winter,” says Sham Bansal of Rage, a well-known and premium brand of women’s wear.
Another manufacturer pointed out that the maximum sales of winter clothes are in October, November and December.
But this season the demand for garments from wholesalers and retailers remained very low. They placed the order only once and did not come back to place the order for the second or third time complaining of very low demand for winter clothing at the retail counters,” said another winter apparel manufacturer.
Some manufacturers are already fearing to clear the existing stocks and are offering 10-20% discount on winter wear.
“We started offering the discount from December 10, but retailers said what will they do with it when there is no demand,” the manufacturer said.
Naveen Sood, a factory owner in Ludhiana, says that compared to the normal business season, sales at retail counters have dropped by more than 50 per cent this season.
“This time the onset of winter was delayed, leading to a drop in demand for clothing. The weather conditions have been unfavorable for the hosiery sector,” says Mr. Sood.
He adds, “Our Tibetan customers who buy winter clothes from Ludhiana and sell them in many parts of the country by setting up stalls and holding exhibitions, did not place orders again this time due to weak demand. Buy winter wear thrice.
“Similarly, Kashmiri traders also buy goods from us and sell door to door, but this time they were not willing to make another round to place the order again,” says Mr. Sood.
Hosiery manufacturers further say that when they call up wholesalers and retailers in Punjab and other states for payment, their customers cite poor sales and send videos showing stores full of current stock .
Mr Sood says the wedding season in December also failed to spur demand for winter clothing, which was another blow to the industry.
Mr. Sood says, “The adverse weather has turned out to be a major disappointment and will not bode well for the hosiery sector.”
Although the minimum temperature has dropped at many places in the northern region in the last few days, the hosiery industry is hopeful that demand for winter wear may pick up, which will help in clearing some of the existing stocks.