Gokaldas Exports Forecasts Slow Global Garment Demand
One of India’s biggest garment exporters, Gokaldas Exports has forecast that because the global economy remains weak, demand for clothing too will remain slow in the first half of fiscal 2024.
“We are however optimistic about the revival of the business in the second half of fiscal 2024 and are bullish on the long-term prospects of our company,” Sivaramakrishnan G, MD at Gokaldas Exports said.
“Global retail off-take has been slow during the first quarter of fiscal 2024, which has caused overall imports of major consuming markets like the US, UK, and the EU to decline significantly,” he informed.
“This is primarily due to inventory overhang with our buyers,” Sivaramakrishnan explained in regulatory filing.
“Data on apparel imports revealed a year-over-year fall of 26 percent for the US in April and May 2023 and 20 percent for the United Kingdom and Europe,” he added.
High lending rates, a mild winter, and weak retail demand in the fall and winter of 2022 all led to surplus inventories that affected off-take for this year.
Concluding on an optimistic note, Sivaramakrishnan mentioned that despite the fact that the global economy remained anemic, the good news was that it could only get better.
