Apparel retailers and daily household brands are choosing to keep their inventory levels steady despite a noticeable slowdown in consumer spending, as they prepare for the critical winter shopping season. This decision comes in light of the India Meteorological Department’s (IMD) prediction of a warmer November, with no immediate signs of winter.
Retailers are determined to avoid past pitfalls, having faced significant challenges last year when a mild winter led to excess stock and necessitated heavy discounting to clear inventory. In contrast, companies like Aditya Birla Fashion & Retail are confident in their preparations for the season, focusing on timing rather than the strength of the winter itself.
Despite a generally subdued demand environment reported during the September quarter, some positive indicators have emerged, particularly due to increased festive spending and wedding-related shopping activity. Retailers are grappling with the complexities of inventory forecasting amid this volatility, with seasonal changes in northern India posing additional challenges.
The impact of seasonality extends beyond apparel, affecting categories like food and personal care products that rely on winter for sales growth. Companies are actively planning marketing and promotional strategies to capitalise on potential demand spikes. Early signs of seasonal movement in winter stock have been noted by some brands, with expectations for growth contingent on winter conditions.
As retailers navigate these uncertain weather patterns, their strategies reflect a blend of cautious optimism and proactive planning aimed at maximising sales opportunities during the upcoming winter months.
