How brands boost business with festive sales
Industry experts explain how they are strengthening their businesses during the economic slump with the help of festive sales
While the Indian economic climate rests blue, the festive sale remains the buzzword among consumers. Brands are attempting to grab the consumer's attention with tempting festive sales. Although the festive sale is not a new idea in the Indian market, the only unusual thing this year is the cold economy of our nation. We talked to industry experts to understand how they are strengthening their businesses during the slump with the help of festive sales.
Rajneesh Kumar, SVP & Chief Corporate Affairs Officer Flipkart Group, highlights Flipkart's strategy to substantiate business with festive sales during the slowdown. Kumar tells that “This edition of Big Billion Days is set to be a huge celebration for the whole country and we are sure the scale of it will serve as an impetus for consumption and demand”.
According to Kumar, the domestic e-commerce sector has the potential to fire up the current low growth/low demand situation given the consumption it fuels. "When it comes to e-commerce, we at Flipkart don't see sellers and consumers holding back at all, in fact, sellers and brands are looking to e-commerce to drive consumption sentiment – leveraging on its continued growth," explains Kumar.
"When it comes to e-commerce, we at Flipkart don't see sellers and consumers holding back at all, in fact, sellers and brands are looking to e-commerce to drive consumption sentiment – leveraging on its continued growth," explains Kumar.
Furthermore, talking about festive sales, Kumar revealed, “Lakhs of the sellers on our platform look forward to the Big Billion Days festive event as an opportunity and a landmark moment in their financial year”.
While there is hype about a slump in the Indian economy, online retail giant Amazon is not experiencing any slowdown, instead, they're all set to triumph the Great Indian Festival Sale with the most exciting offers.
“We at Amazon have not experienced any kind of slowdown," says an Amazon India spokesperson. They also highlighted that “In the last three to four months, Amazon has witnessed an acceleration in the number of sellers wanting to register, starting from local artisans, weavers to large sellers and brands, we see no signs of anxiety from them”.
"Like every year, customers can look forward to our biggest celebration with the Great Indian Festival," emphasised the Amazon Indian spokesperson.
Brands in general also try to grab every single opportunity to come up with attractive sales to encourage their customers to buy more.
Beardo, the men's grooming products brand, is presently offering 45% to 70% discount as a part of their festive sale.
"While we spend roughly about 8-10% of the expected revenue for our marketing campaigns during the festive season, we earn about 22-25% of our annual profits from festive sales”, reveals Ashutosh Valani, Co-founder of Beardo. “As there's a slowdown in the market, we tend to hone our fundamentals such as the focus on business development, set short-term goals and capitalise on current customers. We also tend to come up with various sale to seek our current consumers”, describes Valani.
When asked how festive sales help brands strengthen their business, Valani says, “Festivals are the time when consumers look forward to indulging themselves, to make the most of this we come up with sales during festivals to leverage this fruitful duration”.
While the Indian economic climate faces a slip, few industries are still growing such as smartphone and tourism.
According to the International Data Corporation, smartphone manufacturers are also gearing up for the festive season with about 75 new models to be launched. Experts believe that to maintain their business during the slowdown, smartphone brands will come up with exciting offers.
Madhav Sheth, CEO, Realme, the Shenzhen-based Chinese smartphone manufacturer highlights why smartphone brands experiment with sales.
"When consumer demands are higher than expected, we always try to increase production capabilities. For example, during the first two rounds of sales of our realme2, we sold out 3.7 lakh units and our CEO even spent a lot of time in the factory to ensure we have had enough supplies of stocks," tells Sheth.
When asked if festive sales or other offers help them reach out or alienate certain customer segments, Sheth says, “Yes it helps. Consumer demands for offers and discounts are always high. So yes, we also have a festive sale planned with multiple offers," he adds.
Similarly, tourism is also growing rapidly in the country.
Nishant Pitti, Co-Founder & CEO, EaseMyTrip, agrees that there is a slump in consumer outlay and an overall slowdown in the Indian market. However, he also points out that the tourism sector is seeing growth from short-haul destinations. “Presently, the Indian tourism market is observing flyers from over 15 countries”. Pitti tells that their key purpose to come up with festive sales is to encourage travellers to explore unknown destinations to celebrate such occasions with their loved ones.
“We spend around 30 to 40% of our total annual marketing budget on the branding of our festival sales”, reveals Pitti. “In return, we receive 80 to 90% rise in ROI through these festive sales. Around 22 to 30% of our annual business comes from festive sales”, he adds.For more updates, be socially connected with us on
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