Likely to spend Rs 100 crore on promotional activities.
The onset of annual festival season has given a reason to cheer to local retailers after witnessing dip in sales in the first two quarters of the 2011-12 financial year.
Shopping malls and complexes in Lucknow are expecting over 80 per cent increase in footfalls during festival season, which started in the last week of September and will continue till early November.
To encash the shopping mood, retailers and consumer durable goods companies are offering incentives like discounts, free gifts and interest free finance options to rev up sales and perk up consumer confidence. Such activities will continue till early January to cover Christmas and New Year spirit. According to a survey by Associated Chambers of Commerce and Industry of India (Assocham), companies and local retailers are expecting 45-60 per cent increase in sales during this period.
“Lucknow malls are likely to spend over Rs 100 crore on decoration including contemporary lighting and promotional campaigns during the festive season,” Assocham secretary general D S Rawat has said.
Assocham interacted with about 250 leasing managers, representatives of malls’ management, strategist, marketers and supervisors in Lucknow to gauge their mood and preparation to attract consumers during the season.
A majority of respondents reckoned that skyrocketing inflation coupled with rising fuel prices, interest rates and inflation, the buyers’ confidence was shaken and they witnessed a dip in footfall by about 20 per cent in the first two quarters.
But, they are gung-ho about brisk business during the third quarter and thus increased their overall marketing budget by about 30 per cent for this period alone.
Promotional activities by malls entail product launches by celebrities, food festival, mehendi and tattoo workshops by professional artists, cooking competition for women, exhibitions, contests, task for kids, youngsters and sponsoring gift vouchers, gift items like apparel for those who win contests.
