Online retailers don’t hesitate when it comes to discounts. The e-commerce giants come up with their special sales at least twice a year and offer discounts on regular intervals.
Currently, two leading e-retailers — Amazon and Flipkart — are offering mega sales to consumers in a week-long discount battle. On the other hand, offline retailers are also up in arms to give a tough fight.
US-based apparel brand Gap, which has partnered with Arvind Lifestyle in India, has offered a 60 per cent discount on the purchase of five items in their Bengaluru market in the battle against Flipkart and Amazon.
Retail chains and departmental stores are offering discounts between 25-30 per cent.
According to experts, the average discount offered by offline retailers has been increased in the last few years. Offline retailers on an average offer around 30 per cent discount, up from around 15-20 per cent couple of years back.
Retail chain Lifestyle offered a flat 30 per cent discount from 12-14 May on all leading apparel, handbag and footwear brands such as Lee, Wrangler, Pepe Jeans, Ginger and Allen Solly. The sale was targeted at all age groups, including kids wear.
Shopper Stop, meanwhile, played the celebrity card to attract customers. Shoppers Stop was providing consumers an opportunity to meet cricketer Virat Kohli if they buy Wrogn products worth Rs 5,000, with an additional discount voucher of Rs 1,000.
Indian apparel brand Numero Uno is carrying out promotional offers to keep their customers intact. Talking to BW Businessworld, Narinder Singh, CMD of Numero Uno, said, “We will go for the end of season sale. We are keeping the consumer involved with our promotional offers at the moment.”
The apparel brand is giving out gift coupons, merchandise and discount vouchers to the customers. When asked if the online discount sales impact the offline retailer, he replied, “Overall, there is no big impact but the offline sales see a dip during that particular period when the sales go on. Online retailers are mature now as they have started giving a sensible discount and not losing money.”
TCNS, which runs women ethnic and Indo-fusion brands such as W, Aurelia and Wishful, are also providing promotional offers to their customers through vouchers that can be redeemed during their next purchase.
“Online sales have limited impact on offline businesses as they are discounting old season stocks,” Anant Daga, Managing Director - TCNS, said.
It will be interesting to see how offline retailers will take on online retailers in the upcoming end of season and festive sale. There is no doubt that all leading retailers sell their majority of stocks through their offline channel, but online fashion portals are changing the game every quarter.
BW Reporters
The author is a journalist with BW Businessworld. He primarily covers Retail, Media & Entertainment and Travel & Tourism sectors
