600 billion dollar retail market is soon going to cross a trillion dollar mark..Thats what the BCG report says..thanks to the digital commerce companies for contribution as well.
Discounts are raining cats and dogs..
You might not have opened your recently bought shoes from Amazon till you get tempted to buy another fancy shoe in diwali from flipkart just because it is offered at 50% less…and yes Christmas is ready to offer you another pair of shoes at 55% discount..I have discounted here the never ending penchant of girls for dresses .
60% discounts!! 80% discounts !!big billion day..Snap the best deal..Unbelievable bargains,Big bonanza offer . These catch lines even a newborn baby might have heard these days.
It appears as of world is coming on your feet to offer you something free of cost.
People are getting tempted as if tomorrow it is not going to happen..
We cant wait and do get tempted to the offers And yes the discounts are working in brand , commodities favour.
Who said Consumer sentiments in this quarter are low ?
India is a land of festivals, so we can have such sale every month. Diwali .Dussehra. Navratre…Christmas..Valentine day..26th January..Holi .Rakshabandhan and the cycle will continue.
What are these discounts playing on/Leading to :
- Innate desire to catch hold of everything : It is basically touching the never ending greed part of human behaviour. The consumption whih ight not be useful / needed but still get a space because it is valued for money and is offered to you at a discounted rate.
- Increasing the consumption: Flipkart sold 25 items per second in its big billion day on the proposition of heavy discounts though discounts were not applicable to all the categories…5 lac mobile were sold in first 10 hrs ..are these 5 lac people living without phones. No they just want to upgrade or give it a chance due to the offer.Consumer are coming forth to upgrade their accesories, clothings, living style
- Importance of consumer led promotions : Consumer promotion is driving the entire market more than the advertisements. Consumer promotion is becoming the biggest purchase trigger. Better is the discount, better is the footfall/traffic. Catching consumers nerves an the buying psychology is the most difficult subject to understand in this dynamic environment of seconds purchase.
- It is increasing the accessibility/Change in consumer demographics : More than 60% orders in Snapdeal came from tier 2 and tier 3 cities .Time has come when when a person sitting in hinterland has an access to all the products as to an urban counterpart. The people in remote areas are comfortable in buying online and tapping the available discounts. Just recall BASHEER!!!
- Effect on offline stores: The pinch is felt on major offline retailers too. Effect is on ground also.Offline retailers like Big bazaar, Reliance are also offering heavy discounts on daily food products , electronics accessories creating a competitive ecosystem leading to purchase benefits for the consumers.
- Urge to buy and buy: Ever heard of shopping time..Ghar waapsi sale for office goers. Diwali Bonanaza even before diwali.8-9 pm sales 9-10 pm sales . Its just the time led sales or the sales which is offering convenience for the people..They actually are not selling products.They are selling convenience. Buying on the go .BOTG ( a new abbreviation I just coined).
- Data building: Beyond imagination is the amount of data that is getting generated at the back end by the companies on a regular basis. Our details, purchase patterns, our buying behaviour, our psychology to buy products is getting mapped at the back end.So do not get surprised if someday these companies will show a custom based products for your need on your screen at the same time when you receive the message of salary on your mobile.Just learn to hold the temptation..
At the end it’s the consumer who wins and hence the market grows!!
By: Kumud Kandpal