Demonetisation Affect: Fashion brands resort to mid-season sales

The effects of demonetization have been far reaching. While many retailers have reported a dip in sales, many fashion brands have opted for out-of-season rebates and incentives to lure customers back. What is interesting is that fashion brands have taken the e-commerce route after the invalidation of higher denomination currency and are offering promotions, cash backs and discounts to reverse dwindling sales and save the October-December quarter from becoming a washout. While stores have followed e-commerce strategy of cash backs, online retailers have substantially increased discounts for customers using debit/credit cards. Myntra for example is offering an additional 25 per cent discount on purchases above Rs 1,299 paid through debit and credit cards ; Jabong has the same benefit for online payments of Rs 999 and more.

Brands like Tommy Hilfiger and Benetton are offering promotions, Superdry and Marks & Spencer are drawing customers with mid season discounts and cash backs. Pepe Jeans has gone a step ahead and is giving additional discounts on card transactions. Marks & Spencer has an additional 10 per cent cash back on card payments, while Pepe Jeans offers 5 per cent off.

However, not all brands are resorting to discounts — some are offering customers other services and incentives. Sports brand Puma is accepting cheques from loyal customers. However, such measures appear to have a limited impact. Overall, business hasn’t improved as fewer customers are spending money after the scrapping of high-denomination notes.