Traditionally, customers in India used to wait for the festive season to make bulk purchases and indulge in premium purchases. Today however, shoppers are not limiting their enthusiasm to festivals alone but are also making bulk purchases at events created by retailers around national holidays like Republic Day, Valentines Day, and Independence Day or better call them ‘Big Events.’ Such events are attracting new shoppers and ensuring that organised retail remains firmly entrenched in the minds of the urban shoppers.
As per the study by Nielsen, the retailer created week-long Independence sale event which is designed around the Indian Independence date of 15th August, makes around INR 190 Cr in sales compared to an average event sale of INR 142 Cr, designating it as the biggest sale event for the year.
The trend is prominent not only in brick and mortar retailers but online retailers as well. For example, leading e-retailer Amazon is going to host an event called 'Great Indian Sale' that will provide offers on consumer electronics, fashion, home & kitchen as well as daily essentials. This is Amazon India’s first sales initiative of 2017. During the sale, a minimum 50% off is offered on brands like American Tourister and Puma and up to 50% off on Vero Moda and Hidesign, as listed on its website. Books, movies and music will also be available on purchase at discounts as steep as 80%.
As Nielsen study states event sales contribute to 955 crore in modern trade (for the year ending May 2016), accounting for nearly 17% of total fast-moving consumer goods (FMCG) sales.
Let’s throw light upon few such events run by the retailers and how such events have helped the retailers and malls.
End of Season Sale(EOSS) 2016
End of Season sale is yet another event which fetches the retailers improved footfall and margins. Though, it is just not a day long activity. However, this year demonization has created a slight slump which was recovered well later on, as leading malls reported. Rajneesh Mahajan, Executive Director, Inorbit Malls informed, “November in general is a slow month and demonetization impacted certain categories. However,the bounce back was faster and by end of November everything was normal. Christmas brought in the festive mood and customers were once again seen spending on fashion, food, and entertainment.”
Expressing the similar views, Mukesh Kumar, Senior Vice President at Infiniti Malls, Mumbai said, “Demonetization had resulted in visibly reduced low footfalls in shopping malls, but this effect was temporary and we saw turn around in few weeks as more currency circulated in the system and improved the purchasing power and appetite of the consumers.” He also informed that brands like Big Bazaar Gen Next, Marks & Spencer,Metro, Zara, Nike etc have done well this EOSS.
Select CITYWALK, a premium mall from South Delhi states that this time EOSS sales were slight higher as compared to last year. Total footfall during 23rd to 25th was 3,24, 125 which was almost same as last year.
“The sales were effected initially post the announcement of demonetisation. Though the sales went down by 10-15% in the first week, but then it soon picked up and we were back on track. Last month despite demonetisation we have had record sales and footfall at our centre,” informed Salim Roopani, Centre Director, PacificMall, Tagore Garden.
Pushpa Bector, Executive Vice President & Head- DLF Premium Malls, said, “This time we saw more aggression from retailers’ side. Our December has been extremely good owing to pent-up demand as there was less shopping in the month of November due to note-ban. This year EOSS was started slight early and footfall was better as compared to last year. We garnerd 1.2 million customers during the month of December. However, last year this figure was less by 80-90 thousand. All the lifestyle brands including ZARA, H&M performed extremely well this EOSS. In winter wear category, socks performed extremely well.”
She also informed that this time premium footwear retailer Aldo did a week-end sale of 'buy one get one free' and got extremely good response. Fast fashion retailer Forever21 offered a huge discount of 70% in the month of November.
Speaking on same, Bhavna Tewari, E –commerce & Digital Marketing Manager, Crocs India shared, “All year round sale at Crocs’ stores are 1.5 times higher, and we are expecting 1.5 – 2 times footfall escalation this EOSS.”
She also informed that the company plans to expand its reach to various outlets in India while closing on almost 1.5-2 times the revenue by the end of the current financial year.
Social media based ‘events’!
It is a new trend which is slowly picking up the pace. In the month of December 2016 Future group had created a twitter-led movement called #DecideYourPrice initiative. The basic idea behind the movement was to let customers decide the price of products intead going for flat discounts.
The company announced its branded bestseller products on Thursday, 22nd December at 6pm . Customers were required to simply retweet their announcement between 6pm to 10 pm.
Every single time a customer did so, the price of the product was decreased in rupee or percentage terms. The lowest price finally established by the customers was marked as the final price at which the customer can buy the product from any Big Bazaar store across the country between 24th – 25th Dec.
This revolutionary idea aspires to re-evaluate a conventionally business-driven market and give its buyers the right to decide the prices.
As study Neilsen study indicates almost 50% of shoppers visit modern trade during sales period, resulting in a 13% increase in store visits. No doubt, 'Big events' are an ace in the modern trade retailer’s pack, which they need to harness better to truly stand apart from the crowded trade market.