Theory of economic slowdown –
Falling or low Mens innerwear sales – first and big sign of recession.
A slowdown in innerwear was a story carried out by The economic times and we must say – beautifully stitched by Ashutosh R Shyam and Sagar Malviya. Compliments !
The theory was originally conceived by former US Federal reserve Board Chairman Greenspan in 1970’s that related Men’s innerwear sales with the recession and the reverse is fully true.
It’s been reported in the last quarter that sales of the brands like Jockey grew just by slowest ever 2% and Dollar, VIP kind of brands saw a decline of around 4 and 20% respectively.
Vedji Ticku, CEO, Page Industries was further quoted:
“We very clearly see that the footfalls are not the same. The sentiment is still not what it should be. There is a very slow footfall across the markets. It is all headwinds currently from all aspects of business,” Ticku said. The company saw a 2% volume decline in the quarter, its first ever.
So is the Indian customer starting to hold back from any new purchases?
The numbers will show the trends of per capita income and the de-growth from 2010 and 2018. From 13.3% in 2010 to 2014, it declined to 9,5% between 2015 and 2018.
FMCG companies are already starting to re-look at their growth numbers for the year 2019 and 2020. It is definitely a slow growth phase and the diminishing lending opportunities are the biggest culprits for the overall financial health.
Dollar Industries managing director Vinod Kumar Gupta said during an investor call last week.
“The unemployment rate has also been very high. All these factors have led to a decrease in expenditure at the consumer level. Availability of funds (has) also slowed down at the MSME (micro, small and medium enterprises) level as well.”
The innerwear market size is as big as 10% of the total apparel market and though it was expected to grow from Rs. 27931 Crore to Rs. 74258 Crore industry size – the forecasted numbers may not yet reflect the real crises and are bound to take a big hit.
The valuations for the innerwear brands are being adversely
affected – Though Still early signs but scary!