Shoppers May See Fewer Apparel Discounts This Festival Season
What Happened
Indian apparel retailers are planning to reduce heavy discounting during the festive season as rising costs across manufacturing, transportation, packaging and raw materials continue to pressure profitability. According to the Retailers Association of India (RAI), retailers expect sales growth to remain healthy thanks to improving consumer confidence, but margins are under strain.
Key Takeaways
Instead of offering steep discounts, retailers are likely to focus on exclusive merchandise, innovative products and better in-store experiences to attract shoppers. Rising fuel prices, higher man-made fibre costs and staffing shortages are making profitability a bigger concern than revenue growth this season.