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Malls first had flash mobs (sudden breaking into song and dance by a large group). Now, it is ‘flash sales’. As it happens abroad, flash sales mean sharply dropping prices for a short period.
Setting this off is Mumbai-based developer Inorbit Mall, which is offering a flat 51 per cent off on 56 international and domestic brands on Saturday.
“We are having flash sales across our malls in Hyderabad and Mumbai (at Vashi and Malad). We were the first to start this concept on January 26. We got a good response in terms of footfalls and good revenues for the brands we house,” said Nishank Joshi, Inorbit’s Head (Marketing and Communications).
On an average day, Inorbit, gets 30,000-35,000 footfalls.
The strategy is often adopted for high-end brands to clear stocks in a limited period. As a result, consumers get good bargains on premium products such as perfumes, sun-glasses and footwear.
Revenue boost
“It is a win-win for the mall and the brands. Malls get about 40 per cent more footfalls and several brands manage 80-100 per cent boost in revenues,” he said, adding that even brands that are not on sale get some leverage due to flash sales. The food courts and entertainment zones also benefit. Flash sales, however, are a tricky strategy; frequent repeats could be a dampener, especially with the festival season ahead. The major concern is whether the consumer will buy during that period, said Arvind Singhal of marketing research firm Technopak.
Such repeated sales can help boost overall revenue but end up pressuring margins. Margins have been hit for most retailers in the first six months of 2012 because of the slowdown and weak consumer sentiment.
Meanwhile, large retail chains such as Bharti Retail, Big Bazaar and Shoppers Stop have just begun their Independence Day sales.
Bharti Retail has launched “Freedom from Inflation” campaign at its Easyday stores, where products are on offer at low prices. “The stores will help people fight inflation by providing quality merchandise at great prices,” said Mitchell Slape, Chief Operating Officer, Bharti Retail.
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