Selling underwear went through a month with timid signs of recovery. After having gone through historic peaks of decline, the sector within the The clothing sector managed to achieve better salesalthough the expectation for the second half of the year is uncertain.
Tights, bras, underwear and stockings. Typical gifts given on birthdays, holidays or celebrations. Of course, not all items are given at any time of the year. However, what retailers agree on is that The first half of 2024 was complex in terms of sales volume achieved.
Ernesto Del Burgopresident of the Argentine Chamber of Textile Innovationtells this media that the sale of underwear has a different dynamic depending on the type of area and business.
According to the data handled by the entity, May 2024 marked an increase of fifteen% year-on-year, but June recorded a decrease of 12% compared to the same month last year. However, July rebounded again and reported growth of 18% year-on-year.
According to the head of the Chamber, the sale of underwear has a marked seasonal component, where higher sales are recorded during the cold months.
With the recovery of sales, he highlights that “Today the buyer returns as the protagonist”. That is to say: previously, priority was given to the supplier, based on the prices offered and payment time. Now, according to From the Burgothe focus is on generating greater supply, in the face of a demand that is recovering but with doubts regarding economic progress in the second half of the year.
At the same time, it understands that the growing trend towards wholesale and online purchasing “complicates trade”, for which reason, and more so in this context, it is necessary “achieve an experience and not just a sale”.
For its part, Gerardo Molciusky, CEO of Eyelit Products, maintains a somewhat more moderate view on the situation of the sector. It understands that sales of underwear have fallen year-on-year by up to 50% at the beginning of 2024but also highlights that in July the sales dynamics improved.
However, he does not consider the effect that it could have to be minor.“the decrease in circulation” on activity and how monetary policy could drive the continuation of the recession.
However, a study conducted by the Protejer Foundation indicates that the sectoral reality between May and June 2024 did not behave in the same way.
According to the survey, the 79% of companies recorded losses in its sales volume, with an average drop of -39%.
At the same time, 78% of companies reduced production year-on-year. The average decline was -41%.
As a result of the stoppage, 76% of the surveyed companies recorded declines in their use of installed capacity and 63% have taken any measure that affected employmentFor example, 45% said they had reduced their staff in relation to December 2023.
For all this, according to Protejer, 84% of companies will not make investments during 2024 and/or have cancelled previously planned investments.
Under this scenario, more and more businesses are offering financing plans outside the program. Simple Share and implement interest-free installments.
According to him Payway Indexinstallment plans grow compared to the previous quarter up to 29.9% due to the appearance of interest-free installments and promotions on special dates, such as Hot Sale and Father’s Day. In the Simple Fee plans The volume of payments in 6 installments grew by 45.28%.
Source: Ambito
