Fashion retailers across India are launching early discount campaigns and advancing seasonal sales in an effort to revive demand amid a slowdown in discretionary spending, as consumers grapple with rising household expenses and geopolitical uncertainty.
Leading apparel brands including Uniqlo, Marks & Spencer, H&M and Pantaloons have begun offering discounts on selected merchandise, while online marketplaces such as Myntra, Nykaa Fashion and Flipkart have rolled out promotional campaigns across fashion categories.
Industry executives said retailers have experienced a significant slowdown in sales over the past two months, prompting brands to introduce mid-season promotions earlier than usual. Many brands have opted for advanced mid-season sales rather than waiting for traditional end-of-season discounting, as the spring-summer season has been weaker than expected. Selected merchandise is being offered at discounts of up to 40% in an effort to clear inventory and offset sales shortfalls.
Retailers estimate that sales have fallen by as much as 30% in recent months as consumers rein in discretionary purchases amid rising costs of fuel, LPG and essential goods.
Akhil Jain, Managing Director and Chief Executive Officer of Jain Amar, said brands are increasingly using targeted discounting as a promotional tool in response to geopolitical uncertainty and its impact on consumer sentiment. He explained that retailers are avoiding blanket markdowns and instead focusing on selected stock-keeping units (SKUs) and bundled offerings to drive store traffic and improve inventory turnover.
Several retailers have informed suppliers that the first major sale of the year, which typically runs from July through mid-August, may be advanced by seven to ten days. Brands are planning to introduce fresh collections from mid-July, a period that would previously have been dominated by discount-led sales activity.
Industry analysts said the early discounting trend highlights the pressure facing apparel retailers after a subdued spring-summer season. They noted that brands are attempting to strike a balance between clearing inventory and protecting profitability by relying on targeted promotions rather than widespread markdowns.
Retailers are also reassessing growth expectations for the year, with greater emphasis on profitability, inventory management and cash flow optimisation. Analysts expect discount-led campaigns to remain a key demand-generation strategy in the near term if consumer spending remains subdued.
