India is in the middle of its festive season. The festive season between October and December is an important period for all retailers. Businesses notch up their sales growth figures in this season owing to the high spending capacity of the consumers. Moreover, most organisations offer incentives/ bonuses to their employees in this period and to attract this consumer attention, all retailers and manufacturers especially the ones dealing in consumer durables, jewellery and confectionary capitalize on this cash rich market.
This is the prime time when retailers can sell at the optimum level and make up for the rest of the year.
Significance: Increase in sales & size of bills
Products such as 3D, LED and LCD and Plasma television sets, front-loading washing machines, high feature-rich microwaves, branded apparel and fashion wear, imported chocolates, dry fruits and digital cameras and smart-phones are in high demand across the country, increasing the average bill sizes by 15-25 per cent. Sales as compared to last year is expected to be much higher as last year customers were cautious about spending extra considering the low market conditions due to recession.
The retail chain of Big Bazaar and Pantaloon stores across over 70 cities and rural locations, believes that the market has improved a lot particularly in the furniture and electronics segments. It is expected a 35 per cent-40 per cent growth on the Hometown front this season.
According to Ms Shanta Roy Sanjeev, Head-Marketing, Haier Appliances India "We are looking forward to an excellent festive season with overwhelming support from consumers and traders. We are expecting a growth of 200% as compared to the last festive season."
Consumers are typically in a spending spree over the period, and retailers are hoping for bumper sales.
Retailers’ preparation at all Channels
With festive season near the corner, retailers and manufacturers are fully prepared to tap the opportunity with in-store decoration, visual merchandising, vibrant lightings and promotional schemes to woo the customers who are in a mood of shopping spree.
- New merchandise Introduced:
Innovative product portfolio is the charm of shoppers as well as the retailers. Super fashionable festive collection with extensive elements and styling is usually produced by the manufacturers to broach in this peak time. Godrej Nature’s Basket have introduced over 23 different varieties of themed hampers. Each of the hampers caters to specific festive delight requirements be it sweets, exotic nuts, chocolates or even high end wine. “We have introduced various themed hampers such as Chocolates & Confectionery Hamper, Indulgence Hamper, Premium Dry Fruits Hamper, Red Wine Hamper, et al. which make great gifting options for people who are looking for something different to delight their loved ones,” says Mr Mohit Khattar, MD, Godrej Nature’s Basket.
- New retail concepts, Tie-ups:
Strategic business tie-up to boost the sales market is another route to catch up with the trend. For instance, Beetel, the manufacturer of landline phones, cordless has tied-up with Reliance BIGTV connection. The alliance also offers Beetel customers a two-months'' free ''Silver'' pack subscription from Reliance BigTV. Australian Food festival is organized for food lovers to add more food items in the kitchen by Nature’s Basket. Haier has also tied up with Bajaj Finance for the
0 per cent rate of interest during the festive season.
New pop- up stores is the buzzword among the manufacturers this festive season with temporary shops that usually sell goods for a limited period of time. Designed to generate buzz and lure shoppers with a get-in-while-you-can appeal, pop-ups allow brands to move quickly, opening up shops to test a new product or market, and closing them without much fuss. Japanese imaging major Canon has set up 100 pop-up stores during the ongoing festive season for promotion of the latest range.
“We are conducting exhibitions at exclusive showrooms across the country. This pre-diwali showcasing was designed keeping in mind the current trend & niche taste of our esteemed clients. There is something to match the style statement of every woman and surface the “Diva” within, “says Mr Gajera, Cygnus.
- In-store Preparation:
Ambience is created to match the product mix and give the shoppers full experience. As asserted by Mitesh Gajera, MD, Cygnus jewellery, “Our visual merchandising team has done the store decoration keeping in mind the festive season and the colorful decoration enhances the festive spirit of each customer that’s walks into our stores.”
Add-on Services to boost sales
Retailers and manufacturers give ample of offers to the shoppers in the festive season as they are in the shopping mood. It is the best time to display and offer as many services.
*Conducting workshops on festive products
*Training staff to introduce new product mix offers
*Promotions and festive hampers
*Discounts and Gift vouchers, lucky draws
In conclusion, festive seasons is auspicious for the shoppers and the retailers as it saves around 10-15 per cent in shopping the products and also gives enough bill size to the retailers to make up the cost during this period through the preparations and strategies implemented. It’s a win-win situation!!