Sparkle of hope this Diwali
Sparkle of hope this Diwali

In a hope to gain profits Indian retailers are putting up a big show during Diwali season. The retailers and manufacturers especially who are dealing in consumer durables, jewellery and confectionery are placing its bets on the festive season to end this year on a bright note. While manufacturers seem upbeat about this Diwali season, the retailers are positive with crossed fingers. A proof of their belief in the gaining profits this Diwali is the number of promotions offered by several brands. Renowned companies are having promotional activities by companies to woo consumers, extensive expenditure over marketing and advertising, ambitious sales targets for the next three months.

 

Skyrocketing sales 
Top consumer durable companies like Samsung, LG, Godrej Appliances and CROMA chain of electronics of Infiniti Retail have lined up various innovative offers this festive season in the hope that consumers will spend this year. These companies expect to rake in 30 -40 per cent more over the sales in the corresponding period last year. 

“We are expecting to notch up sales of Rs. 1,700 crores in the festive period for our consumer electronics products, says Ravinder Zutshi, Deputy Manager, Samsung India.

Last year, Godrej Appliances made sales over Rs. 450 crores but this year the company expects to mark sales of Rs.600 crores.

“While the consumer goods arm of Godrej Company has set the target of 30 per cent increase in sales during the festive season,” informed, V. Suresh, VP, Marketing, Godrej Consumer Products Ltd. 

On the other hand Confectionery maker Cadbury India has raised its sales bar by 10 per cent this year over the last year and Surya Food & Agro Limited, the manufacturer of “Priyagold” brand of biscuits projected a sales growth of 30 per cent this year.

“We have recently started a program particularly for Big Bazaar which is aimed at greater community connect. We are increasingly trying to cater to communities this festival and the merchandise will reflect that,” says Atul Talke, Head, Corporate Communication, Future Group. “We are hopeful of doing at least 50 per cent of our annual sales during this period,” he adds.  

Discounts and offers 
Without faltering by offering lucrative offers in the market, the companies are not worried about no-show from consumer. The reinstating pay cuts, bonuses and the pay hikes for government employees is the major factor of hope for them this festive season. Therefore retailers and manufactures across segments like automobiles, gems and jewellery makers and consumer products etc. are keen to offer discounts quite aggressively this year. 

Samsung is giving assured gifts worth Rs 25 crores on the range of products LED, LCD, TVS, DVD players, refrigerators, washing machine etc. The company has launched special consumer offers for the festival period which are valid till October 31, 2009 pan India on select Samsung consumer electronics and home appliances products. 

“For us, the festival season represents the peak selling period and that is the reason we have launched new products, have given attractive consumer offers and are also making available triple zero finance offers for consumers,” says Zutshi.

To encourage consumers, Godrej Appliances has come up with an offer called ‘Godrej Aladdin Make a Wish Offer, where on purchase of any appliances, consumer is assured of gifts worth Rs. 800 –Rs 4,290 and an opportunity to act in the next Bollywood movie produced by EROS International.  

The jewellery retailers like Tanishq have introduced a contest called ‘Queen of Diamonds’ where they are giving away prizes worth Rs. 4 crore this season. While Mehul Choksi, Chairman and MD, Gitanjali Group has launched the offer called ‘Samriddhi Offer’ where on purchase of any jewellery starting from Rs 10,000 and above, every customer is assured of a free gift. The offer spreads across all Gitanjali brands like Nakshatra, Asmi, D’damas, Gili, Diya and Sangini. The jewellery aficionados

have a chance to win a Morellato watch which is being given free by the company on purchase of jewellery worth Rs. 20001 and above.

And keeping in mind customer’s preference for smart and stylish gift packs on the special occasion like Diwali, the confectionary maker Priyagold has introduced 18 different gift packs of their premium range of products this festive season, priced between the range of Rs 50 and Rs 210 recognised as Delicious Greetings. Cadbury on the other hand has launched unique gift packs ranging between Rs 75 to Rs 600. 

Going towards the automobile sector, there are no less discounts and freebies offered by the major players. Hyundai for instance, is giving numerous offers on various models excluding i20 this festive season.  

Promos galore 
Unlike last year when due to the financial constraint and low consumer sentiments, marketers curbed themselves by spending on promotional activities, this year festive season will see huge promotional activities. The heavy spends on promotions and advertisements are done by the marketers across the board to catch the consumers’ attention. 

The Future Group has promotions going on in a full swing for each of its retail formats such as Big Bazaar, Pantaloons, Central, HomeTown and eZone.

To enhance visibility during the festival period, Samsung India has released a new corporate campaign which showcases the entire Samsung product portfolio packaged in the festivity of Diwali. The company’s advertisement expenses are up by over 35 per cent this festival.

“We wanted to extend the spirit of gifting for those less privileged and so we will give part of our revenues from this offer to ‘Make-a-wish-Foundation,” expressed Kamal Nandi, Vice President, Sales and Marketing, Godrej Appliances.

Apart from this Godrej would promote awareness through its POS and print advertisements for which the expenses are is between Rs 35 crores-Rs 40 crores. 

Ajit Joshi, Managing Director, and Chief Executive, Infiniti Retail, which promotes the Croma chain of electronic stores is offering festive bonanza scheme running across all Croma stores nationwide till 20th October, 2009. He recommended consumers to pick up bigger appliances at this time as these items come with freebies and zero financial scheme which lead to the sales boost. 

Wait and Watch
With the positivity all around, it is likely that all retailers should do better than the last year. There are no doubts that this festive season offers the best opportunity. All we have to see which brand will make the most out of it.  
 
 

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