Offline retailers take the festive fight to e-tailers with discounts, gifts

As the festive season draws near, pages of newspapers are steadily filling up with advertisements by retailers and brands. Many are offering 40-60 per cent discount and gifts to get buyers into stores and combating the publicity blitzkrieg by Amazon and Flipkart.

The annual festive season sales of both Amazon and Flipkart will start on Wednesday. But, this year, offline retailers, too, have padded up to give them a run for their money.

Many claimed they expect an increase of 20-30 per cent over the previous year's sales during the festive season. There are also fewer e-tailers this year, with a number of mergers and shutdowns in the sector.

"The hype over online sales is down; offline players are well aware of what consumers want," said Kishore Biyani, chief executive officer, Future Group.

He added, "We are taking a region-wise approach, with an aggressive plan around Durga Puja. This will soon be extended to Diwali. There are offers running on every category -- apparels, footwear, durables, etc. Online sales do not bother us."

Brand Factory, owned by the Future Group, is offering 57 per cent discount on denims -- one of the most popular items sold by the chain in Kolkata. Up to 60 per cent discount is being offered on footwear. 

At this rate, said experts, some popular brands such as Levi's and Puma are turning out to be more expensive on Flipkart than at a Brand Factory outlet. 

Eyeing a Big sales pie

• Both Amazon and Flipkart will kick off their online festive sales on Wednesday

• Retail chains such as Big Bazaar, Brand Factory, and Vijay Sales are not far behind in wooing consumers

• Most are offering discounts between 40 and 60 per cent on products, lucrative deals, gift cards and extended warranties

• Latest gadgets and strong after-sales service are available at these stores

The Future Group has also tied-up with card payment gateway RuPay to offer an additional 10 per cent discount at Big Bazaar, Food Bazaar, and Fashion at Big Bazaar outlets for a minimum purchase of Rs 2,000 during Durga Puja. 

Pantaloons and Central, fashion retail brands of the same group, have also rolled out special Durga Puja collections at affordable prices.

Vjay Sales, the Mumbai-headquartered electronics chain, is offering a flat 40 per cent festive discount on air conditioners.

According to Nilesh Gupta, managing director, Vijay Sales, the chain is offering extended warranties, gift cards, and discounts of not less than 20 per cent on TVs, mobile phones, home and kitchen appliances -- all products that are popular during the festive season.

Some retailers such as the Tata group's Croma believe online festive sales are actually a boon for brick-and-mortar stores.  

Ritesh Ghosal, chief marketing officer, Croma, said, "The online festive sale helps us. Store footfalls and sales conversion rates go up because people prefer to see the product, especially big-ticket items, before buying it. Last year, we grew 20 per cent during the festive season. But, on the first four to five days of Navratra, which coincided with the online festive sales, growth was around 30 per cent."

Offline players also said e-tailers typically offer deep discounts only on end-of-life products, with the latest gadgets out of their purview. 

This hardly affects business, Croma's Ghosal said, since consumers are on the lookout for the latest gadget. 

Regional retailers such as Pai International, which has a presence in Karnataka, Telangana, and Andhra Pradesh, endorsed this view, adding that after-sale service of e-tailers was poor. This acted as an incentive, said Guruprasad Pai, director, Pai International, for consumers to head to offline stores.