Several apparel retailers in India have began their end of season sales in earnest after witnessing weak sales during the summer season.
Arrow, FCUK, Fila, French Connection, Guess, Louis Philippe, Puma, Regal and Van Heusen are some of the brands that have already started offering discounts to consumers, much earlier than the usual August and September months for their end of the season sales (EOSS).
Explaining the rationale, behind the idea of preponing discount sales by garment firms, to fibre2fashion, Mr. Harminder Sahni, Managing Director of Wazir Advisors, said, “The sales in the current season have been really bad. Hence, rather than waiting for the season to end and then panic and sell, the retailers are becoming proactive and are trying to have a longer sales season.”
Mr. Rahul Mehta, President of the Clothing Manufacturers’ Association of India (CMAI), opines, “Having burnt their fingers in the last 2-3 seasons, the apparel brands were a little cautious this season. But this year will not be as dramatic as the last two EOSS because brands are not offering too many discounts this time, which in the long run is very good for the industry.”
Actually, a similar trend of starting EOSS early was seen during the winter season as well. “This trend is here to stay as Indian market becomes more like western markets wherein the sales and promotions by leading brands and retailers are an ongoing phenomenon and not a once in a year event,” says Mr. Sahni.
“Indian brands and retailers are slowly moving towards the trend seen in Western markets. So, while we will still have big EOSS there will always be sales and promotions during the season, too, to proactively get more footfalls and conversion and also to grab market share from competition,” adds Mr. Sahni.
In fact, the apparel retail sector in India has grown tremendously from being a Rs. 500 billion market in 2000 to Rs. 5000 billion market in...