Online discounts and promotions will peak this month onwards with brands across smartphones, electronics, and apparel rushing to clear unsold inventory ahead of the upcoming festive season. Marketplaces such as Amazon and Flipkart are lining up multiple sales events.

Industry executives estimate that the average online discount in these categories in the forthcoming sales will be the highest since Covid-19, as their sales have been under pressure from January to June. The chief executive of a leading apparel brand mentioned that it will clear inventory from 2023 with hefty discounts in the upcoming 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,” he said on condition of anonymity. "Discounts on old stock will be more than last year," he added.

Avneet Singh Marwah, chief executive of online-focused electronic manufacturer Super Plastronics, said brands are banking heavily on online sales to clear stock as the industry sales growth is badly impacted this year.