)
An extended Independence Day weekend prompted retailers and manufacturers to go the whole way in wooing consumers. Bigger retailers say they expect sales growth of at least 15-20 per cent during this period over last year as shoppers make the best of back-to-back holidays.
"I-Day this year fell on a Saturday. It is a weekly off for many people. Plus, there is a public holiday on Tuesday (Parsi New Year), prompting many to take an off on Monday. If you put all this together, what you get are two extra days for the I-Day sale. This will have a positive rub-off on business," says Nilesh Gupta, managing director, Vijay Sales, a Mumbai-based chain of electronic stores.
Retailers and makers of apparel, electronics, food and beverages all have offers and deals to take advantage of this extended weekend. Discounts vary from a minimum of 15-20 per cent to 50-60 per cent in stores, said those spoken to by this newspaper. E-retailers, making their presence felt in a big way this year, are even sharper with their discounts, offering as much as 70 per cent on merchandise in fashion, lifestyle, electronics and home & kitchen appliances, executives said. Flipkart and Amazon say they saw almost a three-fold to eight-fold growth in business thanks to the sales they ran during this period.
"Our Freedom Sale on August 7-8 was a great success, with fashion, home and large appliances the top-performing categories. We saw a three-fold growth in business. During the I-Day weekend, we are showcasing 'Made In India' products for customers to browse and shop," a Flipkart spokesperson said. An Amazon India spokesperson said the first day of 'The Great Indian Freedom Sale' (August 10-12) was the biggest for them in sales, declining to specify how much. "The first two days combined were 50 per cent bigger in sales as compared to the first two days of the 'Summer Sale' we ran and eight times bigger than the previous week," the spokesperson added. I-Day sales, pioneered by Kishore Biyani's Future Group, have gained traction over recent years as consumers wait for this period to take advantage of bigger deals and offers. "While savings are critical to shoppers," says Devendra Chawla, group president, food and FMCG brands, Future Group. "we also look at new category development by helping shoppers experiment with new products. For this, we work with vendors and manufacturers closely." Apart from deep discounts, Future and rival Reliance, which had an I-Day sale from Wednesday till Sunday, were focusing attention on 'Buy one, get one' and 'Buy one, get two' offers. This is especially visible in food, fast moving consumer goods and apparel.
In electronics, it is purely the lure of lower prices that is driving sales, sources say. "Both I-Day and Republic Day have become important purchase occasions, much like Diwali and Dussehra are for retailers and manufacturers," says C M Singh, chief operating officer, Videocon Industries. "Retailers get much-needed footfall during this period and manufacturers can clear their inventory in the run-up to the festive period." According to some estimates, I-Day easily contributes about a third of a retailer's sales in August. If extended, sales contribution for the month could be higher, experts say.
