Retail brands and even shopping malls are relying on the festive season for sales upsurge after two rather dull years, courtesy restrictions caused by the pandemic. The industry hopes a slew of product launches, offers and discounts will drive sales during the festivities. The sales upsurge is expected to come from metros as also tier-II and -III towns of India. In fact, the smaller towns are registering an increased participation in online commerce during the festive season. A Redseer report said that participation of online shoppers during the festive week (those who shop during festive sales) has doubled from 18 per cent in CY18 to a projected 38 per cent in CY22. This has been due to increasing penetration in tier-II cities, among other reasons. “Today, 65 per cent of our customer orders and 85 per cent of new customers on Amazon.in and 50 per cent of our million plus sellers come from tier-II and -III cities and towns,” said Amazon India spokesperson.
So how are the retailers prepping for the festive season?
Retail brands are prepping for the festive season sales surge with increased inventory, logistics, etc. Besides these, they are also planning new launches for the festive months and are floating a spectrum of offers and discounts to appease the consumers.
Amazon: “We have over 60 Fulfilment Centers, Sortation Centers across 19 states and over 1850 Amazon owned and partner stations that are gearing up for the festive season, along with 28,000 I have Space partners and thousands of Flex partners ready to deliver to customers across the country,” said Amazon Spokesperson.
ASICS: “Our marketing strategy will include a 360-degree approach. We will launch the season campaign with our brand ambassador, followed by other high-impact marketing activities that will help drive brand awareness,” said Rajat Khurana, Managing Director, ASICS India and South Asia.
Growel’s 101 Mall: “We will be hosting grand promotions during the festive quarter with a focus to increase footfalls and also ticket size. The incentives planned are Mega Prizes, Weekly draws and also some assured gifts on every purchase. Most retailers and brands at Growel’s 101 Mall are also planning exciting offers to add to the festive cheer,” said Gerad Mathew, General Manager Operations, Growel’s 101 Mall, Kandivali (Mumbai).
Madame: “Madame is ensuring that our customers get their clothing in the shortest possible time. We are seeing an increase in order frequency to twice and thrice weekly, and we have good logistics partners who can ensure on-time delivery. We have also tied up with retailers for temporary warehouse facilities to fulfill the higher demand during this festive season,” said Akhil Duggar Jain, Executive Director, Madame.
Woodland: “This year, we have a lot of new offerings for the customers and also an expansive reach that we have amplified through our new omnichannel-enabled e-commerce site. We are also developing innovative offers across categories to increase consumer interest,” said Pavandeep Singh, VP, Growth Strategy, Woodland.
Even as retailers maintained that the rupee depreciation will have the ‘bare minimum impact’ on the Indian festivities, they also maintained that there will not be any kind of price drop or rise in the coming months. “I doubt if a price drop will be viable. With the festive season and celebrations in place, we don’t see the possibility of a price drop though there can be festive offers, discounts, et al,” said Pavandeep Singh.
The 31st edition of the Retail Business Survey by the Retailers Association of India (RAI) indicated that in August 2022, retail businesses across India reported a growth of 15 per cent in sales as compared to pre-pandemic levels. And RAI CEO Kumar Rajagopalan hoped that ‘consumption get more broad-based as the festive season kicks in’.