No dearth of discounts, online and offline2 min read . Updated: 30 May 2016, 05:34 PM IST
Big Bazaar, the hypermarket chain of Kishore Biyani's Future Group, will launch a discount scheme on the first eight days of every month
Mumbai: There seems to be no dearth of discounts and promotions, be it online or offline. From quick service restaurants like McDonald’s to premium brands like Guess and Steve Madden and hypermarkets like Big Bazaar and HyperCity have offers on board.
On Sunday, McDonald’s had a special offer: purchase above ₹ 125 and get a McChicken or McVeggie free. The American fast food burger chain was also offering three toys on every happy meal delivery order.
American clothing brand Guess is running a mid-season sale of 30% which is available till this weekend. Fashion brand Beverly Hills Polo Club has a part sale of 30% off till this weekend. Aldo, an accessories and footwear brand, is running a promotion this week: buy more, save more, where consumers who buy worth ₹ 12,000 get ₹ 3,000 off.
Even department retail chain Shoppers Stop is running a promotion on its fashion offering, giving consumers 40% off on the second outfit for every one purchase. Brands like Lee have an additional 10% off.
Starting 1 June, HyperCity, the hyper market chain, will run a month-long promotion for its 10th anniversary offering discounts across categories from fashion—an average of 30-50% discount across the category to 20-30% off on general merchandise. There are special offers on fresh fruits and vegetables and back to school categories as well.
June will also see Big Bazaar, the hypermarket chain of Kishore Biyani’s Future Group, launch a discount scheme on the first eight days of every month which will give consumers a coupons booklet of ₹ 2,000 for every ₹ 2,500 spent at the store. The booklet will have cash back, coupons and vouchers that can be redeemed between 9 and 30 of the month across the group’s different formats ranging from fashion and electronics to home furnishing.
Meanwhile, e-tailers across the board haven’t reduced their quantum of discounts despite the 29 March notification. On 29 March, the government allowed 100% foreign direct investment (FDI) in online retail of goods and services under the so-called marketplace model with three conditions. One, no group company or seller on a marketplace can contribute more than 25% of the sales generated. Two, marketplaces cannot influence product prices, meaning an end to the era of steep discounts that has led to exponential online sales growth. Three, small sellers will now have to take responsibility for the quality of goods and after-sales support.
However, so far there seems to be no abatement in online discounts. On Monday, Amazon was advertising for its ‘Big fashion Sale’ offering minimum 50% off, whereas Flipkart was running a flash sale for 24 hours. Furniture e-tailer pepperfry.com had 50-75% off on its furniture and home decor range recently.
“The quantum of discounts have increased whether it is fashion or electronics," said Ramesh Menon, chief executive officer, HyperCity. He added that in the fashion category, sales have extended from end of season to extended end of season and now there is also a mid-season sale taking place.
The discounts are being led due to intense competition and discounting led by e-tailers. “Last year everything was discounted and there were steep discounts. Now it is more targeted and thoughtful discounting as e-tailers have a better understanding of what works and also because investor patience to keep funding losses has come down," said Amitabh Mall, partner and director, Boston Consulting Group, while explaining that the nature of discounts is changing.