Once again End of the Season Sale (EOSS) is on, and Indian shoppers are hoping to grab the best deal that this sale offers. The winter EOSS usually coincides with the festive season, thus making it an exciting time to shop. Moreover, this EOSS is also attributed as ‘clearance sale’ as it basically held to clear the stock from earlier season.
Traditionally, it used to commence at the end of January, but economic slowdown has forced the retailers to let sales season kick off a bit early so that shoppers can buy their favorites at discounted rates. Although it is middle of January, response has been quite encouraging. Speaking on the same, Radhesh Kagzi, President 109°F, said, “109°F EOSS has started on a high note. We are currently offering flat 50 percent off on both of our brands.”
Reiterating the same, Ivana Perovic, CEO, AP Group, stated, “The response to the EOSS has been great so far, however it has only been a week since we have gone on sale and we hope to see great increase in footfalls and visits to our e-commerce website”.
Undoubtedly, this is the rejoicing period for retailers as well as shoppers. However, for retailers EOSS is just not about clearing the stock, it is more than that.
A strategy beyond stock clearance
The EOSS happens for various reasons, few of them being simply for the purpose of increasing brand awareness and creating brand loyalty. Addressing the same, Perovic, highlighted, “Brands can create the aspiration to shop for new collections that normally arrive in stores post sale period.”
Moreover, an EOSS helps reduce excess inventory in a store. As time and again, store receives stock according to local demand that at times results in excess inventory that clutters a store. EOSS helps in clearing up that space.
Agreeing with the same Kagzi highlighted, “Such sales can help move goods from a prior season to free up space for the next season's merchandise.”
Popular categories on sale
The price conscious Indian consumers always eager to try the best of brands and fashion with most discounted rates. This season, most of the retailers are offering up to 50 per cent discount. Clothes and accessories seem to be the most discounted categories this season.
Sandeep Goenka, CEO, Lavie, said, “Handbags and shoes are discounted in slabs of 20, 30 and 40 percent.”
Likewise, brand Holii is offering up to 30 per cent discount on its handbags.
Shankar Dhanrajani, Chief Officer, Breakbounce Streetwear, said, “Our highest discounted category includes winterwear, sweaters and sweatshirts.”
How footfall is affected
EOSS increases traffic, especially it brings value-based shoppers to malls. Also, sometimes the attraction to get lower-priced goods increases the range of customers of a particular brand. Often, during the end of the sale, retailers plan special visual merchandising that not only help in increasing sales but also make the sale season more than just about shopping.
Nishank Joshi, Assistant Vice President – Marketing PPZ, shared, “Overall, we are expecting to see a 25-30 percent growth in footfall this year. Whereas, in mature markets like Mumbai and Delhi, we will see a nominal 10-15 percent increase in consumption and that has been the industry average over the last five-six years.”
Most of the retailers agreed that EOSS period contributes decent share in their overall revenue; however, the percent of margin varies substantially. Taking this further, Kagzi said, “We hope to maintain double-digit growth during the end-of-season sale because these sales contribute around 20 per cent of annual revenue.”
Speaking the same, Sangita Rohira, CEO AND Designs India Ltd, said, “As we have some added footfalls, thus the EOSS adds to the quantity sold. However, on the margins we do take a hit as there are no escalated prices or special merchandise created.”
Striking the similar note, Deepak Aggarwal, Managing Director, KAZO, said, "Turnover is not really affected from the sales as it is already in the budget and planned well in advance."