How Retailers Are Winning With Event Based Sales?
Apart from end of season sale (EOSS) event based sales are yet another occasions that have start turning profitable to retailers as well as shoppers.BY Shipra Srivastava | Jan 29, 2018 | comments ( 0 ) |
Off season sale is one of the biggest event for Indian consumers when they make or indulge in premium purchases. However, shoppers these days are not limiting their enthusiasm to off season sale alone but are making hefty purchases at events created by retailers around national holidays like Republic Day, Valentine’s Day, and Independence Day etc. Though, these sale events attract shoppers but do they also generate equal amount of traction for retailers as well since such sale events are usually followed by off season sale? Let’s try to find out..
EOSS vs Event Sales: Who is diluting whom?
Retailers tend to put in discounts usually during the end of season sale. As new stocks come in, the demand for older stocks reduces implying that it becomes difficult to sell at the older selling price. “With heightened competition online and offline, discounts have become a major expectation of customers as it is. On special occasions, customers tend to step out or step online and shop (especially on slightly bigger ticket items). Retailers obviously want to take a chunk of the potential sales increase on these days and so try to lure customers with more discounts,” said Aditya Singhal, Founder & CEO, IML Jeans Co.
Speaking on same, Anupam Bansal, Executive Director, Liberty Group said,” Engaging the customers with individual brand is a keen outreach program for all retailers. This stands enhanced at specific occasions because it is felt that such occasions are important to some consumers and may not be so established amongst others. Sales spikes are usually plotted in such cases. Discounts is an outreach which involves almost the entire customer base that looks at the value market.”
“Running discount periods throughout the season does render the event based sales irrelevant. We also feel that running discounts throughout the year also dilutes the brand equity, pointed out Prakshi Sharma, Creative Head & Designer, Prakshi Fine Jewellery.
Speaking further, Karan Behal, Founder & CEO, Pretty Secrets said," We have our end of season sale twice in the year i.e before the launch of each of our collections AW and SS. Apart from this, all year round, we don’t heavily discount our products. During events like Valentines Day - we ensure we have lucrative offers which aren’t heavily discount oriented considering people are organically shopping because there is demand."
Effect on top lines
End of season sale is known for improving the top lines. No doubt, event based sales helps in generating traction at least on that particular day but for many retailers top lines remain unaffected due to event based sales. “For our brand IML, we don’t discount at all. We do see a surge in topline during the holiday or special occasion sales period but it isn’t due to discounts,” said Singhal. However, there are many who thinks other way around as well. “It does as retailers manage to extend the offer that allows for improved top lines”, said Bansal. “On an average the attempt is fulfill an increment of 30% during these event based initiatives,” he added further.
“Yes, event based sale periods definitely help the top lines. These sale periods give a much better response as customers look forward to such occasions and plan their shopping around it,” said Sharma.
Speaking on surge in sales Sharma informed, “Footfall is approximately twice or thrice of the usual number. And sales also increase proportionately.”
"Valentines Day sees a surge in sales considering the categories of lingerie and nightwear which are most often bought by women or as gifts by men. There is roughly a 20-25% surge in sales," informed Behal.
Clearly, despite the short duration event based sale activities offer a huge opportunity for retailers not only to increase footfalls but conversions as well.
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