Calcutta, Jan. 1: The home textile industry is pinning its hopes on an early autumn-winter sale to recover from demonetisation.
Mumbai-based Bombay Dyeing Retail has rescheduled its sale season by nearly three weeks, starting December 17 instead of the first week of January.
“The entire home textile sector saw nearly a 50 per cent decline in sales after demonetisation and it’s necessary for us to get back on our feet soon,” said a senior official of Bombay Dyeing Retail.
Home textiles include furnishing fabrics, bed and bath linen.
The company is offering up to 50 per cent discount on its products across categories till January 26. The offer will be applicable at over 200 franchise outlets and in more than 30 company-owned outlets, besides multi-brand outlets and large format stores.
Nationally, the home textile industry is estimated at Rs 33,000 crore, with the organised sector accounting for Rs 2,000 crore, and growing at a compounded annual growth rate of over 30 per cent.
Typically, sales during the December-January period are higher by 20-25 per cent because of wedding seasons.
“Since we have begun giving discounts well before our scheduled time, we hope the sales will pick up again soon,” said an official of Bombay Dyeing Retail.
Welspun Group, which operates through multi-brand outlets and large format stores, is offering a 25-50 per cent discount across its 2,500 stock-keeping units.
“Only 5 per cent of our revenues come from domestic sales. So, even though it did have an impact, it wasn’t huge enough to reflect on our overall sales,” Subrata Pal, head of domestic business of Welspun Global Brands, told The Telegraph.
Industry observers said since demonetisation, stocks have been piling up because of falling sales.
“All older products need to be cleared through these sales before the spring-summer collection can be brought in. But with the fall of discretionary spending among consumers this year, stock clearance has become a daunting task,” an industry veteran said.
[Source:-The Telegraph]
