- Meenakshi Kumar |
Fashion brands sales have seen a 15-20 per cent surge during the year end festive season period of December due to the heavy discounting model adopted by most leading fashion retailers in the country. Retailers have also resorted to discounts which have paid off resulting in improvement in sales which is likely to reflect in the Q3 (October to December period) results of the companies.
In 2017, during the same period sales of most firms took a beating due to demonetisation in November with fashion retailers posting poor results during the period last fiscal. However, the heavy discounting model with up to 40 to 50 per cent discount offered by leading brands like Benetton, Arvind Lifestyle, Mango, Marks & Spencer have managed to revive the fortunes of most retailers.
Puma also increased its sales growth by 20 per cent in 2017 even though sales had been flat in western India says, Puma India managing director Abhishek Ganguly. Benetton expect to end EOSS (end of season sale) sooner than the last year. Benetton India managing director Sundeep Chugh says that the season has been faring as per expectations and Benetton’s sale period is aligned with the market. The revenue generated is less with online contributing 10 per cent to 20 per cent to the overall sales of most brands.
Brands generate majority of its revenue from physical stores and are willing to cut down on its margins by offering discounts in order to expand customer base and remain competitive in the market.