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While most brands are offering Rs 1,000 vouchers for purchases of Rs 4,000 and above, some brands like ONLY have a flat 30 per cent discount and others have "buy one get one free" offers.
"When markets go down, walk-ins also come down. The only way to prop up conversions and ticket size is to offer promotions," said Kavindra Mishra, managing director and chief executive officer, Pepe Jeans London, which is offering Rs 1,000 merchandise free on purchase of Rs 5,999.
Prashant Agarwal, joint managing director of Wazir Advisors, said, "Around 70 per cent of the brands have not performed to expectation. Hence they are coming up with offers and promotions to cover the fall in sales." Agarwal added brands did not have budgets to offer flat discounts because the peak sales season was under way and discounted sales would start only after June 15.
"Sales have shifted from physical stores to e-commerce portals. Retailers have to respond to discounting by e-commerce players," said Deepark Agarwal, chief executive officer, DLF Brands, which retails Mango and Mothercare among others. "Consumer sentiment is not upbeat, which is why you are seeing a slowdown," said a senior executive working for an international brand.
India's apparel retail market is worth Rs 3,24,500 crore and is growing at 20 per cent. Modern retail is estimated at 43.1 per cent of this market and is expected to grow by 30-40 per cent.
