Apparel retailers launch year-end clearance sales two weeks ahead of schedule
05 January 2025, Mumbai
Major apparel retailers in India, including H&M, Uniqlo, and Lifestyle, have broken from the traditional retail calendar by launching year-end clearance sales nearly two weeks ahead of schedule.
As of January 2026, unseasonably mild temperatures in North India - historically the primary driver for winter commerce - have caused a significant 25 per cent slump in heavy outerwear sales.
With winter collections typically contributing up to 40 per cent of annual turnover, the industry is facing a liquidity-stretching inventory pile-up.
Industry data suggests, Q4 margins could be squeezed by 150-200 basis points as brands offer aggressive discounts of up to 50 per cent to clear surplus jackets and woolens.
Strategic shift toward trans-seasonal fashion
The thermal anomaly is forcing a structural recalibration across the fashion value chain. Retailers are now prioritizing ‘trans-seasonal’ apparel - lightweight layering, versatile gilets, and high-performance athleisure - which can be marketed throughout the year.
‘The persistence of an 'indoor chill' rather than a true cold wave has shifted the consumer mindset toward functional, lighter fabrics,’ noted a merchandise executive from a global label. This shift is being boosted by AI-driven localized drops, allowing brands to customize stock for specific micro-climates, such as lighter fleece for Bangalore versus insulated parkas for hill regions.
Digital integration and the D2C resilience
While brick-and-mortar giants struggle with physical stock, Direct-to-Consumer (D2C) brands like The Indian Garage Co and Wildcraft are leveraging real-time data to mitigate risk.
D2C share in retail leasing has increased from 8 per cent to 18 per cent in the past year, as these brands use online feedback loops to pivot designs mid-season.
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By focusing on ‘capsule drops’ rather than massive seasonal batches, the agile segment of the fashion industry is navigating the climate-driven volatility more effectively than traditional mass-volume players.
The Indian apparel sector is a $120 billion market projected to reach $171 billion by 2034. Homegrown brands specialize in rapid-cycle fast fashion and ethnic wear, increasingly serving Tier-II and III ‘Bharat’ markets.
Current growth plans emphasize omnichannel integration and sustainable material sourcing to meet Gen Z demand.
Despite recent export challenges due to US tariffs, the domestic market remains resilient with a projected 10.5 per cent revenue increase in FY26.
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