This month will see a boom in online sales and promotions as retailers, particularly in the garment sector, hurry to get rid of unsold stock in preparation for the impending holiday season while online retailers, like Amazon and Flipkart, plan several sales events.
Given that their sales were negatively impacted from January to June, industry insiders predict that the average online discount in these categories for the next sales would be the largest since COVID-19. A source in the apparel industry announced that the company will clear out its inventory starting in 2023 by offering steep discounts during the next online sales.
“Apparel demand has been subdued for six quarters now and though the industry has rationalised inventory last fiscal, still there is unsold stock. Discounts on old stock will be more than last year,” said the source.
According to industry sources, Amazon has scheduled Prime Day discounts for this month, coinciding with Flipkart’s parallel sale. These will be followed by Independence Day sales in the first week of August. They stated that there will be more sales till Diwali, including the two main Navratri events, Flipkart’s Big Billion Days and Amazon’s Great Indian Festival, which take place towards the end of September.
Large sales would also be conducted concurrently on other platforms, such as Tata Neu, Reliance’s Ajio, and JioMart, according to executives. Industry leaders stated that they are optimistic about the positive reception that the online sales events would receive from customers, pointing out that signs of recovery are already apparent.