The top luxury retailers in the country are losing money on sales, which is a serious problem for the industry as it has been struggling with a surge in sales.
According to a survey conducted by research firm IHS, the top-selling luxury brands in the year-end quarter were the brand Adidas, Zara, Louis Vuitton and Gucci, accounting for Rs 1,096 crore.
These brands lost Rs 5,965 crore during the period.
In the second quarter of this year, the brands lost nearly Rs 2,100 crore, and in the third quarter, they lost Rs 1.25 lakh crore.
The brands in this quarter also reported a decline in their profit, as a big part of their revenue was driven by sales to online retailers.
This comes on top of the fact that the brands reported a loss of Rs 590 crore in the current quarter.
The retail sector accounts for roughly 12% of their turnover.
Adidas has lost Rs 13,095 crore in this period, according to IHS.
Gucci has lost nearly $1.2 billion, while Adidas and Zara lost Rs 2.5 lakh crore, respectively.
IHS had earlier estimated the sales of the brands in terms of revenue and sales volumes.
According the survey, Adidas is losing money because of the slump in the price of their shoes.
The brand had announced that it would start selling shoes for less at a price of Rs 3,000.
However, the brand has now started selling at a rate of Rs 4,500.
Zara has lost $1,722 crore.
The group has also reported losses in its business, as well.
Adidas lost Rs 8,839 crore, while Gucci lost $2,039 crore.
Louis Vuittis loss is Rs 1 $2.
The top-ranked brand in terms and sales volume, Zora, has reported losses of Rs 1 1/2 billion.
In terms of the sales volume and revenue, the group is losing $1 1/4 billion.
The survey also said that Zara is losing Rs 4 lakh crore as a result of its decline in sales volumes, while the group reported a negative revenue in the same quarter.