It's raining SALE alleluia!
As the name suggests, it is a sale time. Not just the regular sale but most of the brands are offering heaving discounts like Flat 40% off, buy two get one free, Buy a product and get a shopping voucher for the next time. Wonder why are the brands pushing their products at throw away prices? And I am not just talking about the regular ones like Arrow, Louis Philippe or Levi’s but also the luxury ones like Aldo, Steve Maddens, Tommy Hilfiger, Zara. These brands are considered a luxury and not everybody looks at them not for buying but eyeing. But this season I saw Aldo & Steve Madden selling footwear at Rs. 1400* and Zara winter jackets for Rs. 3500*.
Is it pushing the products to Masses? I don’t see that as a strong point. Not everybody is their target audience. Their TG is niche and selected. Let us explore possible connections:
- Market is very dull – Across all the segments be it Consumer Electronics, FMCG, Lifestyle products, there seems to be a slowdown which is impacting every possible brand.
- Adopting the trend from other countries – The stuff which does not sell up- to 5 or more months is considered for selling at lower price along with other fresh stock. This experience is given by stores like Ross and Macy’s in U.S. So even premium brands like CK, Ralph Lauren, and Banana Republic have fresh stock and old stock (which is available at dirt cheap prices). Similarly it is being adopted in India
- Creating a customer experience – Giving a middle class family an experience of luxury brand with a price their pockets can afford. Loyalty points associated with these shopping brings back the customer to shop again and redeem. And sometime or the other if you get an experience, you stick to it for longer time until the pocket absolutely cannot afford.
- “Sale-u” people – Still lot of people in India have that sale mentality. So if they are in the mall for dinner they will definitely peek-a-boo in the showroom which says “FLAT Discount”. And they contribute a lot by their impulsive shopping.
I am one of those analyzers of the brands and their discount period and trust me it is a big saving to do with a good brand in the hand. Happy Shopping & saving J
*On selected but good products. This article is only for current Sale period of Dec-Jan-Feb 2013
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