Here's another indication of the economic slowdown: American design label Ed Hardy, which opened its first store amid much fanfare in Connaught Place in March 2008, has already shut down.

Ed Hardy, known for its irreverent, grungy look and tattoo-influenced styles, stocked T-shirts priced between Rs 3,500 and Rs 24,000. In a terse SMS to clients recently, the management stated that the location wasn’t right, and they have moved the stock to an outlet in Select Citywalk, Saket.

Traditionally, close to 60 per cent of all international luxury brands sales in India have been accessories: bags, wallets and belts. Stores such as Armani, Just Cavalli and Dior opened at the 320,000-square feet Emporio Mall in October at Vasant Kunj with their apparel lines that simply haven’t found buyers.

The Emposio mall is on sale at present, with some stores like Zegna giving discount sales of 60 per cent. For instance, menswear at Zegna, typically priced at Rs 12,000 for a pair of pants or jeans, currently costs Rs 5,000. After the Mumbai terror attacks, the stock in their outlet at Taj Mumbai was moved to Delhi.

Kenzo and Canali, other popular menswear brands based out of Emporio, are giving a flat 50-per cent discount. “Indians who entered luxury retail in partnership with these brands overestimated the size of the market,” says Pradeep Hirani, proprietor, Kimaya Store. Indians, he says, are brand conscious. “They will buy bags with a showy label — the Dior sensibility in clothing does not appeal to the Indian buyer. The stores have huge pressure to liquidate stock and update collections, so they have no option but to go on sale.”

Versace Clothing, which sells in India through Sehgal Brothers in South Extension, announced a 50-per cent sale two days ago. Charu Sachdev of TSG Brands that brought Tommy Hilfiger into India a few years ago and recently launched Marc Jacobs and Kitsch, an international multi brand store, both in Emporio, is cautiously optimistic. “We hope people will at least come to view this fabulous collection,” she says, taking about the Marc Jacobs sale.