Organised retailers bullish on Diwali sales

Written by Mona Mehta | Mumbai | Updated: Sep 25 2009, 04:00am hrs
Players in the Rs 40,000-crore organised retail industry are expecting a revival of fortunes this Diwali, thanks to their new marketing initiatives and improved consumer sentiment in recent months. Most retailers hope footfalls to increase 50% during Diwali compared to last year. Retailers are also hoping for an increase of 20% to 25% in business at premium malls during the festive season. This year, retailers like Westside, Shoppers Stop, Pantaloon and Lifestyle have seen an average monthly footfall of 50,000.

Future Groups retail arm, Pantaloon Retail India, has associated with Remanika Fashion Apparels to launch new consumer promotions for Diwali. Jalaj Kakkar, chief executive officer, Remanika Fashion Apparels, told FE, Gifts are assured for consumers who make purchases worth Rs 3,000 to Rs 4,000. At every Remanika store, as well as in our shop-in-shop formats, we plan to issue gift vouchers worth Rs 400 on purchase of apparels worth Rs 2,000. The promotions will be spread across eight exclusive stores, 22 Shoppers Stop outlets, 30 Pantaloon, 16 Lifestyle, 12 Central and 8 Reliance Trends outlets. At Remanika exclusive stores, on the purchase of three garments from our new merchandise range, customers will get merchandise from the last season free.

According to Virendra Ghole, head, marketing, Monginis Foods, Since health conscious Indians are moving away from consuming mithais, we are introducing cookies and chocolates. Monginis hopes to achieve a 25% sales growth this Diwali compared to the same period last year.

Ghole adds that with real estate prices diving, the company is able to accelerate the pace of new store launches. By the end of the current fiscal, it hopes to increase number of exclusive Monginis stores from 440 to 600.

@home by Nilkamal will offer gifts to customers on the purchase of goods worth over Rs 2,500. Manish Parekh, director, @home, told FE, With new offers, we hope to witness actual sales conversion this Diwali.

Treasure The Jewellery Lounge will offer discounts on jewelleries up to 30% on diamonds, 40% on kundan and 50% on uncut diamonds between September 25 and October 31, targeted at Navratri, Dussera and Diwali shoppers.

According to Bineet Bhatt, chief operating officer, Treasure - The Jewellery Lounge, We have entered into co-branded strategic tie-ups with nine brands in India which includes Yash Birla Group Company Evolve Medspa, Enrich, Flag restaurants, Florista, Great Escape Water Park, Pagli, Power House Gym, Puresin chocolates and Stylekist. Consumers buying jewellery worth Rs 5,000 will get gift vouchers from any of the nine brands.

Sales suffered last Diwali season largely because of the liquidity crunch, in line with the situation across global markets.

According to some estimates, sales had dived as much as 40% in the run up to Diwali last year. Obviously, retailers are leaving nothing to chance this year.