Brands to give in to malls demand for uniform discounts
18 Sep 2014
MallsA rise in inflation and continuous impact of economic slowdown has tremendously affected consumer spending and they are visiting retail shops on lesser occasions. But at the same time a recent Assocham study had pointed out that they are increasingly giving preference to buying online owing to the discounts offered on brands.
mandate, brands to follow
This had led to malls mandating brands to stop offering discounts online and to keep the new season offerings or fresh stocks exclusive to brick-and-mortar stores. Sources claim that brands like Nike, Adidas, and Tommy Hilfiger have refrained themselves from selling their latest collections online. On the other hand, United Colors of Benetton (UCB) though believes that e-commerce is the driving force to the future, it does not offer discounts online.
Select City Walk mall in New Delhi had asked brands leasing space in the mall to give in writing that they will follow a uniform discounting strategy for digital and physical retail. And most of the malls including Phoenix Market City, Pune, Pacific Mall in Delhi and DLF Mall of India in Noida are all set to follow the strategy adopted by Select City Walk. Select City Walk also plans to launch its own e-shopping website around the time when the battle between e-commerce and physical retail continues to be in favour of the former. While the mall has decided to maintain the same pricing for online as well as in the stores, experts feel, this could work against it since apart from convenience factor, consumer are also shopping online due to lower prices.