The Hindu Business Line : Customers seek fashion and quality, but with smaller bill

Bangalore, Oct.17 With shoppers tightening their shopping budgets for the festival season, ‘value for money’ seems to be the most preferred shopping option this year. “Though there is no slowdown in GDP yet and no salary cuts reported, consumers are nervous about the future and holding on to their money,” says Mr Arvind Singhal, Chairman, Technopak Advisors Pvt Ltd, a management consulting firm. He believes that with dampened consumer sentiment, value retailers this year would do much better than upmarket brands.

Mr Rajesh Seth, Vice-President — Marketing and Customer Experience Management, Central and Brand Factory, Pantaloon Retail, agrees that consumers have changed their shopping options this year and “we find that many of them have converted to ‘value for money’ shopping.” Changing consumer preferences, plus better promotions and discounts, have resulted in about 20 per cent growth in sales this year compared with last year across Pantaloon’s seven Brand Factory outlets, says Mr Seth.

May defer other buys

Customers have become more conservative this year and are asking for fashion and quality that fit a ‘smaller bill,’ according to Mr Balvinder Singh Ahluwalia, President, Koutons Retail India. Koutons has responded to the situation by strategising on its product offerings to make them more competitive.

Though Arvind Brands’ discount chain stores, Megamart, has experienced a 30 per cent improvement in average ticket size during the festival season this year, the retail chain has seen a marginal dip in footfalls.

Mr K.E. Venkatachalapathy, Chief Operating Officer, Megamart, says “We’re making it up by offering schemes that encourage consumers to buy more. But value retailers like us are better off than normal retailers.” Mr Singhal of Technopak also feels that while consumers will shrink their budgets for apparel purchase, they are more likely to defer purchase of consumer durables, consumer electronics and automobiles, resulting in a dip in sales in these segments this season.

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