Nearly 40% of apparel inventory in retail is sold at discounted prices due to long supply chain lead times and forecasting errors, leading to profit erosion and weaker brand positioning, according to a new industry report by Vector Consulting Group in collaboration with NIQ (NielsenIQ).

The report, From Threads to Trends: Navigating Supply Chain Complexity in Apparel Retail, reveals that lead times of more than 6-9 months force brands to plan collections a year in advance, making demand forecasting difficult and increasing the risk of unsold stock. This results in size set breakages (20%-40%) and high end-of-season sales (30%-40%), hurting profitability and brand perception. Manually executing in-season stock adjustments, such as inter-store transfers, is often reactive, slow, and inefficient, making it ineffective in improving sell-through.

Kulin Lalbhai, Vice Chairman of Arvind Limited, officially launched the report at the Retail Leadership Summit (RLS) 2025, India's premier retail forum, held in Mumbai on February 27. The report challenges outdated industry assumptions, such as the rigid reliance on seasonal collections and fixed vendor lead times and proposes a differentiated product lifecycle approach. This strategy classifies merchandise into Perennials (core items), short life cycle items (semi- Perennials), and very short life cycle items (True Fashion), enabling brands to streamline supply chains, minimize markdowns, and adapt more effectively to shifting consumer demand.

Commenting on the findings, P. Senthilkumar, Senior Partner at Vector Consulting Group, said: "The apparel industry has long struggled with supply chain inefficiencies that impact margins and customer satisfaction. Our research uncovers the fundamental flaws in traditional supply chain practices and presents a roadmap for retailers to transition to a more agile, demand-driven model. The Retail Leadership Summit is the ideal platform to launch this report, bringing together the industry's top decision-makers seeking transformative solutions."

The Retail Leadership Summit 2025 is the premier gathering of retail leaders, offering a platform to address industry challenges and explore emerging trends. With over 5,000 delegates, 350+ speakers, and 200+ sponsors, RLS 2025 provides the perfect venue to unveil this pivotal research and drive crucial discussions on the future of Indian retail.