Unlike previous festive seasons, this year Diwali witnessed subdued sales and lower business for apparel retailers across India. Rising prices of commodities, low footfalls, fewer sales and unhappy shopkeepers affected the overall festive mood. Customers kept to purchasing only as much as required instead of splurging the way they do in other years. Retailers saw minimal growth this year and they were looking forward to Diwali to bring in luck to their sales. So far, apparel retailers have registered just a 10 per cent growth compared to the 30 per cent witnessed last year. The beginning of this year started off on a negative note with high cotton prices, and a 10 per cent excise duty on branded apparel that forced garment units to increase prices by 10-12 per cent further affecting the low consumer sentiment. Except for the discount sale season in July-August, retailers are barely trying to meet the revenue targets. To attract footfalls during Diwali, retailers like Big Bazaar and Shopper Stop kicked off their festive promotions almost five weeks prior to the festival. While Big Bazaar expected the early campaigning to bring in 25 per cent higher sales, Shoppers Stop’s ‘choose your own gift’ programme for its two million plus loyalty customers extended the validity of this initiative to 90 days this time.But given the general trend in the market, the overall festive atmosphere certainly did not prove to be profitable with inflation still affecting the consumers at large. Higher prices only brought increased sales figures but volume-wise, it was a flat or even lower than last year. Read Full: No sparkle for apparel retail this Diwali - Fashion - news - Fashion News India, jobs, network, apparel, business
Tuesday, 6 December 2011
No sparkle for apparel retail this Diwali - Fashion United
Unlike previous festive seasons, this year Diwali witnessed subdued sales and lower business for apparel retailers across India. Rising prices of commodities, low footfalls, fewer sales and unhappy shopkeepers affected the overall festive mood. Customers kept to purchasing only as much as required instead of splurging the way they do in other years. Retailers saw minimal growth this year and they were looking forward to Diwali to bring in luck to their sales. So far, apparel retailers have registered just a 10 per cent growth compared to the 30 per cent witnessed last year. The beginning of this year started off on a negative note with high cotton prices, and a 10 per cent excise duty on branded apparel that forced garment units to increase prices by 10-12 per cent further affecting the low consumer sentiment. Except for the discount sale season in July-August, retailers are barely trying to meet the revenue targets. To attract footfalls during Diwali, retailers like Big Bazaar and Shopper Stop kicked off their festive promotions almost five weeks prior to the festival. While Big Bazaar expected the early campaigning to bring in 25 per cent higher sales, Shoppers Stop’s ‘choose your own gift’ programme for its two million plus loyalty customers extended the validity of this initiative to 90 days this time.But given the general trend in the market, the overall festive atmosphere certainly did not prove to be profitable with inflation still affecting the consumers at large. Higher prices only brought increased sales figures but volume-wise, it was a flat or even lower than last year. Read Full: No sparkle for apparel retail this Diwali - Fashion - news - Fashion News India, jobs, network, apparel, business