New Delhi: Indian consumers have evolved in making their purchases through different channels. And keeping pace with their demands, retailers, e-commerce players and shopping malls too have rationalized their strategies in devising a sale event.
Brick and mortar stores which used to host seasonal sale or clearance sales for a period of not more than 15 days or so, had extended that duration to months, two years back. However, that’s passé too! As retailers now plan to shorten that months long discount strategy to a shorter time. As per Rakesh Biyani, CMD, Future Group, “Things are now striding towards good balance with some retailers reducing the numbers of discounting days and the overall sale optimizing well. Likewise any industry goes through a cycle every retailer is trying to do something or the other to gain the market share.”
Brick and Mortar retailers like Shoppers Stop which used to run its annual End of Season Sale between June-July every year, had also extended the duration a month longer till August a couple of years back. These days, the retailer generally winds up the sale event on the onset of festive season. While this time It is to see what strategy they would adopt, the retailer has launched its 2018 edition EOSS on June 23rd. When contacted, Shoppers Stop did not respond till the time of filing this report.
Another trend which is largely in vogue and might be an impact of e-commerce, is that Indian brick and mortar retailers who used to offer a maximum of 50-65% sale during the sale events, since two years started offering steep discounts of up till 75-80%. It goes without saying that, e-commerce with its bouquet of sale events and offers, has also made such events more frequent for the physical retailers too. On the other hand, on e-commerce sites, we see events like midnight sale, weekend sales, festival centric sales and the list goes on!
Joining the extravaganza, now malls too host specific events to fortify sales, footfalls of tenant brands. For example, DLF Mall of India, Noida hosted a similar shopping festival by the name of Midnight Shopathon’ on June 29, 2018 between 10 PM to 12 AM. The sale event participated by 300 brands have brought an increment of 20% in the footfall vis a vis previous week Friday.
“The first midnight sale at DLF Mall of India received a phenomenal response. The event brought an unprecedented opportunity for shoppers across Delhi – NCR to buy the latest designs and styles from the leading brands at compelling prices. The escalators and elevators were buzzing with shoppers in the night,” said Pushpa Bector, EVP & Head, DLF shopping malls.
Following the success of this event, the mall is hosting Midnight Shopathon through July 6- July 8, 2018. As per the mall authority, during this festival, it is offering shopping vouchers worth Rs 2000 each and free parking for its first 500 shoppers plus offers on food and beverages.
In recent past also, DLF has tied up with Uber to offer shoppers subsidized fare across its portfolio including DLF Promenade, DLF Mall of India, DLF Place Saket and Cyber Hub till December 2018.
Likewise, e-commerce giant Amazon has announced Prime Day event to start from July 16 at 12 noon IST and running through midnight on July 17. The sale event is an exclusive 36-hour celebration that provides Prime members access to exclusive launches, blockbuster deals and entertainment premiers. In the last month, the company also hosted 3rd edition of Wardrobe Refresh Sale from 21st to 24th June 2018 where it said it achieved 2.5x sales growth.
Going forward, it will be more to see such changes when India’s retail market is expected to increase by 60 per cent to reach US$ 1.1 trillion by 2020 and the size of modern retail in India expected to reach US$ 111.25 billion in 2019 from US$ 70.45 billion in 2016 (Source: IBEF).