 "Retail wisdom: The 13 things I learnt about Diwali shopping")
How’s Diwali? Is it gloom and doom for manufacturers and retailers, as many headlines in newspapers and TV suggest? It is good for some, not so good for others and bad, it seems for others.
This morning, I moderated a panel discussion for Storyboard, with Ajit Joshi, Managing Director and CEO of Infiniti Retail Ltd, which owns Croma, Akshay Mehrotra. Chief Marketing Officer at Big Bazaar, and Sanjeev Agrawal, managing director, Skechers South Asia. All I wanted to know was, was it a happy Diwali?
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Today, Dhanteras, will see the highest sales of the year. Reuters[/caption]
Overall, the headline is that it has been a good Diwali so far. More than the headline, though, what emerged from the conversation were some interesting observations on how retail and consumer behaviour have changed as times change.
Here are 13 things I learnt today.
1. Credit card cycles impact big occasion sales. As Diwali falls at the end of the billing cycle for credit cards, many will postpone purchases till the new month (today).
2. Many would wait for the ‘magic SMS’, the one which informs you that your salary has been credited. Many received the SMS yesterday, many will receive it today.
3. Today, Dhanteras, will see the highest sales of the year.
4. Consumers are willing to pay more and more for high-end audio and video equipment. Croma says their Rs. 27 lakh Samsung 84 inch LED TV is being lapped up.
Impact Shorts
More Shorts5. There are no consumer durable Diwali surprises for the wife. No consumer durable is bought without the wife’s consent and tacit agreement.
6. We’re slowly getting a defined sales calendar. If this year September sales numbers were depressing, get used to it. It’ll be the same next year as July-Aug witnesses the big sales.
7. Private labels help big retailers improve margins.
8. Overall, as sales numbers go up, the margins are under pressure
9. Categories which continue to do well include consumer durables, fashion wear, phones and audio/video equipment.
10. The jury is out on the full page ad. It’s needed/it’s not. It’s confusing
11. The small retailer is getting hit
12. We might see Black Friday-like sales and the consensus is - it’s bad for business. More importantly, it’s not necessary, as Diwali has no ‘date’ limitation unlike Christmas
13. International brands discounting for Diwali is a very, very bad idea. When the market is so small, where is the need to discount and eat into your own margins, is the argument.
For more nuggets and enlightenment, catch the discussions on Saturday on Storyboard on CNBC TV18 and 8.30 AM
Anant Rangaswami was, until recently, the editor of Campaign India magazine, of which Anant was also the founding editor. Campaign India is now arguably India's most respected publication in the advertising and media space. Anant has over 20 years experience in media and advertising. He began in Madras, for STAR TV, moving on as Regional Manager, South for Sony’s SET and finally as Chief Manager at BCCL’s Times Television and Times FM. He then moved to advertising, rising to the post of Associate Vice President at TBWA India. Anant then made the leap into journalism, taking over as editor of what is now Campaign India's competitive publication, Impact. Anant teaches regularly and is a prolific blogger and author of Watching from the sidelines.