14 June 2023, Mumbai
Several lifestyle, apparel, and footwear brands have started mid-season and flash discounting ahead of the usual end-of-season sales (EOSS). This move comes in response to weakened demand over the past two months. Normally, EOSS launches by the end of June, preceding the arrival of fresh season merchandise.
Market Exhaustion and Demand Slowdown
However, brands have opted to cut prices or will soon begin a sale period.
Brands Deviate from Traditional Schedule
The decision to discount earlier than usual is driven by a slowdown in the overall market and the desire to clear existing inventory before new stock arrives in July. The market experienced spending exhaustion, resulting in lower growth rates even for premium products. In March and April, the overall growth dipped to 6%, marking the slowest sales expansion in over 14 months, according to the Retailers Association of India.
Brick-and-Mortar Stores Compete with Online
Retailers are now strategically discounting to compete with online retailers and fulfill mandatory quality control measures, such as obtaining BIS licenses. The aim is to exhaust the current inventory and prepare for the arrival of fresh stock.
