Retailers witness 50 pc drop in business of woollen clothes

Neha Basudkar
Friday, 3 November 2017

Pune: With the mercury dropping in the city, it is time to make a beeline for various hues and types of woollen clothes. But the retailers and wholesalers in the city are witnessing a drop of 50 per cent in the sale of sweaters and sweatshirts as these days people are opting for branded ones than local brands, rise in the transportation cost and 5 per cent Goods and Services Tax (GST). Sweaters are brought from Ludhiana.

Pune: With the mercury dropping in the city, it is time to make a beeline for various hues and types of woollen clothes. But the retailers and wholesalers in the city are witnessing a drop of 50 per cent in the sale of sweaters and sweatshirts as these days people are opting for branded ones than local brands, rise in the transportation cost and 5 per cent Goods and Services Tax (GST). Sweaters are brought from Ludhiana.

Kushal Shah, owner of Ramesh Dyeing, Sadashiv Peth, said, “There are two new patterns in sweatshirts which have arrived this season. It is a reversible sweater and sweatshirts and Jaysons Scooba pattern. As imports of clothes from China are banned, we had to depend on the wools produced in the local market. This wool is expensive and hence, the cost gets increased.”

Mohar Shaikh, a wholesaler at Raviwar Peth, said, “People these days prefer fancy sweaters and sweatshirts. Along with it, GST on sweaters is 5 per cent and the transportation cost has increased from Rs 3,000 to
Rs 5,000 but still, we have to sell it at cheap prices to the retailers because even retailers are not purchasing in abundance.”

Few retailers said that the winter season has not picked up as yet compared to last year. Shiva, a retailer on Laxmi Road, said, “With the beginning of October, the sale generally picks up and we used to make a business of worth Rs 20,000 per day but now we can earn hardly Rs 5,000 per day.” The retailers and wholesalers are selling sweaters at cheap rates as the market is down.

Related News