Today, sale or discount offer has become a never-ending affair throughout the year. Off-season sale, end-of-season sale, seconds sale, festive sale and monsoon discount offers, sales are numerous and are launched in different times of the year. All the sales are basically same: merchandises are sold at discounted price. Two major sales rule the kingdom of sales and discount offers. These are end-of-summer sales and end-of-winter sales. The current sale, end-of-summer-sale, is in full swing and will continue more or less till September-end. Same type of shopping fervour and bonanza prevail in metros and smaller cities alike. In attractive and colourful styles, discount hangings announce '20 % less', '50% off', 'Buy 2, get 2 free' and the likes, triggering consumers into a shopping frenzy. Yes, it is time to shop and get your wants at lesser prices. Sales and discounts create a win-win situation for both the consumer and retailer. The former has the opportunity to buy his or her wants at lowered prices. On the other hand, the later has an opportunity to clear his or her old stocks.

Retailers' opinion
Indian consumers are price-sensitive and value-conscious and, therefore, look upon discounts offers as good opportunities. Buying goods, branded ones in particular, at discounted prices satisfy them in two ways: price and value. For a large section of the Indian consumers, sales also give a chance to acquire brands and labels of their aspiration, which they find hard to buy during off-season due to limited budgets. Explaining the yearly ritual, Mr Arvinder Singh, Unit Head, Ebony, Chandigarh, says, “Whenever there is a change of seasons, sales are launched and these are characterised by bulk buying. It is the right time for buying and get the right stuff.” Commenting on the general increase in buying and selling during sales, Ms Sunita Mehta, proprietor of Balujas outlet in Connaught Place, New Delhi, says, “The period experiences swelling of business and monsoon sale is simply a fillip to the rising demand. The peak season is during festivals like Diwali and Christmas when the business reaches its utmost level. Sixty to 70 per cent of businesses are made during these periods.” As regards companies' policies for sales, Mr Rajan Malhotra, CEO, Big Bazaar, Future Group, says, “Different companies follow different rules. Some companies follow the early-route; they want to be the firsts in the market with their discounts. Others launch discounts during the common period all across the country.”

Why sale or discount offer?
With the change of seasons, mood, fashion and needs too do change. Summer has its own set of needs and fashions while winter has its own. Retailers do have to prepare accordingly. When one season recedes and another one is about to set in, there is a need to clear the shelves off the old stocks so as to make way for a new set of merchandises and goods. This compels retailers to resort to launching sales and discount offers. Stacking the products and not discounting and disposing them off will lead to losses as these products will be duly saleable only after the lapse of one year. Mr Singh says, “The reason we resort to discounts is to promote slow-moving stock, in other words, to liquidate old stocks and replace them with fresh ones for the coming season.”

Commenting on the rationale behind sale and discounts, Mr Suresh Jain, proprietor, Raymond Exclusive showroom, Jaipur, says, “The reason behind sale or huge discount is to clear the old stock so as to accommodate new fashionable products that companies launch as per the season's demand. If we do not offer sale or discounts, it would be difficult to keep and manage huge stocks within limited racks of the stores.” Despite variations and minor differences, opinions of experts on the reason behind sales boil down to just one main point: clearance of stocks. Mr Promod, Head, Thapar outlet in Connaught Place, New Delhi highlights the same point when he says, “The only purpose of sales is to liquidate the old stocks.”