It’s raining discounts, not only in the malls and high streets but also at online stores. Taking a cue from the offline model, online lifestyle retailers too are offering end-of-season discounts to get rid of old stock and reach out to more consumers than before.
Says Mr Kavindra Mishra, VP-Sales, Zovi, which has marked down prices of certain products by 15-40 per cent: “Discounts are on styles which move slowly or the odd sizes that have been left behind. The end-of-season sale helps liquidate the spring-summer collection as we get ready for autumn-winter. It also gives us an opportunity to attract new buyers.”
Zovi believes once new consumers experience its products, they will be back for more. “Repeat buying has risen from 40 per cent on non-sale days to 50 per cent now,” says Mr Mishra.
Myntra.com, which sells brands such as Lee, Wrangler and Nike, is offering an additional 10 per cent discount over what the brands are offering on purchases above Rs 3,000. For Raksha Bandhan, Myntra is dangling sunglasses from Benetton for purchases above Rs 4,000.
Spike in transactions
The sale period has seen transactions on Myntra accelerate to 9,000 per day — from 7,000 during the non-sale period. The number of units sold has risen to 15,000 a day from 11,0000 normally.
As the sale period draws to a close around mid-August, retailers expect a last-minute dash for goodies.
Myntra says it will step up communication during the last 48-72 hours. Says Mr Ashutosh Lawania, Co-Founder, Myntra: “We expect a 20 per cent spurt over what we are experiencing right now.”
Mr Ankur Bisen, Associate Vice-President, Retail and Consumer Products, Technopak Advisors, says discounts are an ongoing feature of online retail. “Competing on price is not a sustainable approach. With maturity, online retailers will look at creating value through product differentiation, convenience and reach. For this, they must strengthen capabilities in merchandising and supply chain.”