Fashion Retailers Offer Early Discounts Amid Consumer Caution

Fashion Retailers Turn to Early Discounts Amidst Lean Demand Period

Fashion retailers are implementing early discounts to lure shoppers back to stores and online platforms during a lean demand period, as consumers reduce discretionary spending amidst rising household costs and uncertainty linked to geopolitical tensions.

Apparel brands such as Uniqlo, Marks & Spencer, H&M, and Pantaloons have started offering discounts on select merchandise. E-commerce platforms like Myntra, Nykaa Fashion, and Flipkart have also launched sale-led campaigns across fashion categories.

Industry executives said the sales shortfall has touched about 30 percent in the last two months, with consumers reducing discretionary spends as fuel, LPG, and essential goods become costlier. In a bid to liquidate inventory and make up for the deficit in sales, retailers have put select merchandise on up to 40 percent off.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Retailers' Strategy

Industry executives, including Akhil Jain, managing director and chief executive officer at Jain Amar, which owns brands such as Madame and Camla Barcelona, said retailers are not going for blanket markdowns. Instead, brands are bundling merchandise and putting only select stock-keeping units (SKUs) on sale to drive footfalls and improve inventory movement.

"The effort is to bring more people into the store and sell more merchandise with each sale. This helps in a faster liquidation of inventory," said Jain. The end-of-season sale may also begin earlier this year, Jain added.

Deloitte Report

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

A recent Deloitte report pointed to a more guarded consumer mood. It said willingness to make large, non-essential purchases fell five percentage points month-on-month to 65 percent in March. Anand Ramanathan, partner and consumer industry leader at Deloitte South Asia, said Indian consumers are entering a phase of calibrated consumption, balancing aspiration with financial discipline and intentional decision-making.

Industry Executives' Views

Industry executives said retailers are also recalibrating growth targets for the year, with a sharper focus on profitability, inventory management, and cash flows. Analysts said the early discounting reflects the pressure apparel retailers are facing after a weaker-than-expected spring-summer season. They said the strategy also shows that brands are trying to balance inventory liquidation with margin protection by offering targeted discounts rather than deep, across-the-board markdowns.

Conclusion

For now, retailers are likely to continue using discount-led promotions to stimulate demand, especially if discretionary spending remains subdued, analysts said.