The Indian apparel industry is showing signs that it will experience another financial quarter of slowdown, according to retail, trading, and investment services business ICICI Securities. Many brands in India reported only marginal growth in the third quarter of the 2024 financial year and have started their end of season sales early.
“We believe higher discounts are reflective of the relative stress in the underlying inventory, and hence, may be a leading indicator of business performance in the near term,” said ICICI Securities in its latest report, accessed by ET Bureau.
The past six to eight months has seen the majority of apparel retailers cutting their prices or offering significant discounts on goods to clear a backlog of unsold inventory. Many apparel categories saw price increases due to higher raw materials costs last year but not all consumers were willing or had the ability to spend more so many brands ended up with unsold stock.
Many apparel retailers launched their end of season sales earlier than usual this year, the Economic Times reported. Early December saw a variety of fashion retailers offering double digit discounts on products, marketed as Christmas or winter festive themed sales. Many malls across India also heavily incorporated sales into their winter festive promotional events.
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