The festive season is a time when retailers wait to put their best foot forward and pocket as much moolah as they can. This year too, Retailers have geared up but the people they are targeting are not in too high spirits. Consumer spending looks in another direction.
Retailers aim big
Strategies for the festive season have already made way in the retail marketplace. Retailers are all out to route their customers in to stores to keep the cash tills ringing.
Sony has launched a series of innovative products cutting across product categories such as Television, Digital Imaging and IT products, during this festive season in the Indian market. Kenichiro Hibi, Managing Director, Sony India, said, “Diwali is one of the biggest and most celebrated festivals in India and Sony plans to make this Diwali even bigger and brighter. This festive season with our revolutionary product portfolio and compelling offers, we are confident of achieving 50 per cent increase over our last year’s festive season sales, taking it to Rs 2,850 crores (Sep – Nov ’12 period) this year.”
BIBA is targeting the kids this festive season and have launched the BIBA Girls collection which boasts of impeccable designs and prints in shades of the celebration for little girls.
E-retail too has jumped on the bandwagon and almost all of the fashion portals have already begun festive sales. The product offerings are countless offering people an exotic range to choose from. But are they willing to make these purchases?
Though retailers are upbeat about the festive season, consumers today are vary of shelling out large amounts this season. In a recent ASSOCHAM Survey on `High prices reduce festive spirit’ found, Majority of respondents plan to spend less amount on this festive seasons as the prices have gone up (51 per cent), value of saving has gone gown (20 per cent), 17 per cent are saving for big purchase and rest 12 per cent said that EMI have increased. Study further reveals that Over 54 per cent of the respondents will buy only on sale or discounts, 27 per cent will spend less on sweets, clothes etc., 12 per cent will buy fewer gifts, five per cent will buy recycle gifts and the rest two per cent will buy a group gift. ASSOCHAM Secretary General, D S Rawat adds, “Any further tightening of monetary policy will aggravate the financial condition seriously, of a large number of people. There is a strong case to pause any rate increase by RBI as the growth momentum has already hit the manufacturing sector and compressed demand appreciably”.
Retailers are doing their bit with marketing in the forefront to drive sales. Though the sentiment is low, discounts will pull people to stores. What we need to watch out is if retailers can rake in what they estimate and if customers will go ahead and splurge as the festivities begin.