| dressing down
Mumbai, Aug. 6: Denim manufacturers in India are seeing price blues. Prices of the popular fabric are under pressure following lower demand from prominent retailers who are busy bringing down their inventory.
The falling prices have raised apprehensions that this trend would continue even as many in the industry pray that it will only be a temporary blip.
The global denim industry faced one of its toughest times a few years back as massive capacities and changing fashion trends hit prices.
However, over the past couple of years, both denim prices and realisations have improved with the fabric back in vogue.
Sources also attribute the current softening of prices to lower demand on the part of customers too. Some feel major retailers are reducing their pipeline inventory, while others believe that denim has taken a backseat with the changing fashion trends in developed countries like the US. Prices of the fabric (14 ounces variety) have now come down to $1.65 per metre from $1.80 per metre, a dip of over 8 per cent.
Sources close to Arvind Mills, a leading manufacturer of denim in India, said the company is experiencing a pressure in denim prices in the current quarter. However, a clearer picture would emerge only in the months to come, they added.
Arvind Mills’ price realisation from denim products was stable during the first quarter of this year at Rs 108 per metre — 10 per cent higher as compared with the corresponding quarter last year when prices were hovering at Rs 97.7 per metre.
The US forms 31 per cent of the company's export market and denim exports constitute around 50 per cent of its turnover. Famous jeans brands like C & A, Federated, Jordache, Lee, Lee Cooper, Limited, No Excuses, Pepe, Tillis Pavely and Wrangler source denim from Arvind.
The other leading denim manufacturers in the country are the Ashima group, Century Textiles and Raymond.
Raymond Denim, set up in 1996, exports a substantial percentage of its produce to countries in Europe, South East Asia and North America. Buyers include Levis, Pepe, Gap, Tommy Hilfiger, Lee Cooper and AZDA.