{"id":2342,"date":"2012-02-01T10:36:00","date_gmt":"2012-02-01T10:36:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=2342"},"modified":"2022-09-07T10:39:20","modified_gmt":"2022-09-07T10:39:20","slug":"retailers-try-to-outdo-each-other-to-sell-more-for-less","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/retailers-try-to-outdo-each-other-to-sell-more-for-less\/","title":{"rendered":"Retailers try to outdo each other to sell more for less"},"content":{"rendered":"\n

Raghavendra Kamath & Sharleen D’Souza, Business Standard
\n Mumbai, February 1, 2012
\n <\/i><\/p>\n

Spending \n on the High Street has never been cheaper for such a long period \n of time. If you walk through Mumbai’s Linking Road that houses \n the showrooms of some of the world’s biggest brands, it’s \n almost a surreal experience: be it Mango or Vera Moda, or Jack \n & Jones, or even shoe brand Aldo – all these premium \n retailers are literally shouting from the rooftops that they are \n offering up to 70% discounts. Some like designer wear Mogra has \n gone one up and is offering up to 80% ‘sale’.<\/p>\n

“At this rate, I won’t be surprised if they go up to \n 100% discount one day,” quips Vinita Chandran ,a regular \n shopper. <\/p>\n

Welcome to the Great Indian Discount Bazaar— something no \n retailer likes but nobody can do without, as a dull Diwali and \n poor offtake in the following months have forced brands to dole \n out more for less. <\/p>\n

The value retailers, as the low-cost brands like to refer themselves \n to, are also feeling the pinch as the raison d’etre of their business \n is now being hijacked by the bigger players. <\/p>\n

Vasant Kumar, executive director of Landmark group’s value \n retail chain Max, was worried during the end of the season sale \n as many brands offered up to 80% discounts and shoppers flocked \n to stores to buy goods on discount.<\/p>\n

“We could not offer such discounts because of our margin \n structures,” Kumar said. To woo customers, Max lowered its \n sale prices from Rs 399 to Rs 299 and played its value card to \n compete with big brands. “There was no meaning of 20 to 30% \n discount when big ones were giving flat 50 to 60% discounts. So \n we lowered our sale prices and said our prices are still lower \n when others gave steep discounts,” he said.<\/p>\n

Kumar is bang on. While French menswear brand Daniel Hechter \n offered flat 60% discount to shoppers for two days, apparel chain \n Bombay High was offering ‘buy two get two free’. Apparel \n retailer Provogue went for a flat 50% off over the Republic Day \n weekend and is now offering a flat 40% off. <\/p>\n

Experts say the ‘sale’ tsunami was bound to happen. “There \n was a double impact—the like to like sales growth was below \n par and new stores could not be opened as planned…So they have \n more inventories to get rid of,” said Devangshu Dutta, chief \n executive of retail consultancy Third Eyesight.<\/b> Like to like \n sales refers to sales coming from stores which are in the business \n for more than one year. <\/p>\n

Besides steep discounts, brands are also keeping higher amount \n of inventory in the discount basket, say industry experts.<\/p>\n

“If brands were keeping 30 to 35% of their merchandise on \n sale, now we are seeing 60 to 70% of their goods on discount. \n We are also seeing brands going for flat 50% discounts rather \n than upto 50%,” said Kumar of Max.<\/p>\n

If that was not enough, many malls such as Raheja-owned Inorbit, \n Oberoi Mall run by Oberoi Realty and Kishore Biyani’s Central \n came out with shopping events wherein 50-100 brands offered a \n flat 50% discount. <\/p>\n

It’s no surprse that many in the industry are not happy \n with the steep discounts brands are offering.<\/p>\n

“I think retailers are overdoing discounts. By giving 70% \n discounts every other season, they are killing the full price \n purchases. They are sensitizing the customers to wait for the \n next season and do not buy full priced product,” said Jaydeep \n Shetty, founder and chief executive of apparel brand Mineral. \n <\/p>\n

“When sales end in February, March will be empty month for \n brands as customers exhaust money to shop,” Shetty adds.<\/p>\n

Govind Shrikhande, managing director of Shoppers Stop, which \n offers customers upto 51% discount, said: “We do not believe \n in this (steep discounts). It is tough and it is race to the bottom.” \n <\/p>\n

But will brands be able to sustain such discounts? “I \n think brands believe that it is better to liquidate stock at higher \n discounts than cash getting stuck in merchandise,” said Dutta.<\/b><\/p>\n

The inventory issue came to the fore when many brands advanced \n their end of the season by a few weeks to clear their inventory \n before the next season kicks in.<\/p>\n

Though brands normally start their end of the season sale after \n January 15, this time around, they came out with the sale from \n third week of December.<\/p>\n

For instance, Mango started its sale from December 22, while \n Aldo started beginning this month. German brand also Esprit also \n advanced its end-of-the-season sale by a over a fortnight to December \n 31 this year (it was January 16 last year). Spanish brand Zara \n also started its sale from early January. <\/p>\n

“Some retailers started their sales from Xmas weekend and \n advanced sales by two to three weeks. It is obvious that they \n wanted to have more topline,” said Nirzar Jain, vice president, \n Oberoi Mall, Mumbai. <\/p>\n

Kumar added that: “There was drop in demand in September \n and October. Hence brands decided to go early and get rid of inventory.”<\/p>\n

Some brands have also extended their sale to shore up the topline. \n French menswear retailer Celio, which has a joint venture with \n Future group, is on a sale for almost one-and-a-half months till \n February 14, UK-based brand French Connection is having its year-end \n sale till March. Normally, these brands have their end-of-the-season \n for a month.<\/p>\n

Steve Madden, an international shoe brand, which started sale \n from beginning this month has extended their sales by another \n week.
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

Raghavendra Kamath & Sharleen D’Souza, Business Standard Mumbai, February 1, 2012 Spending on the High Street has never been cheaper for such a long period of time. If you walk through Mumbai’s Linking Road that houses the showrooms of some of the world’s biggest brands, it’s almost a surreal experience: be it Mango or Vera […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-2342","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"\nRetailers try to outdo each other to sell more for less - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/retailers-try-to-outdo-each-other-to-sell-more-for-less\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Retailers try to outdo each other to sell more for less - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"Raghavendra Kamath & Sharleen D’Souza, Business Standard Mumbai, February 1, 2012 Spending on the High Street has never been cheaper for such a long period of time. 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