Festive retail strategy: Brands go big on discounts; hope early season boosts sentiment

Retailers in India are ramping up discounts, accelerating deliveries, and launching extended sale events this festive season, aiming to revive discretionary spending after a year of sluggish consumer sentiment. With festivals such as Teej, Raksha Bandhan, Janmashtami, and Ganesh Chaturthi falling earlier this year, brands have advanced festive stocking and promotions in anticipation of a demand uptick.“We are cautiously optimistic about July-September after a subdued last year, with many festive occasions in the quarter,” said Pushpa Bector, senior executive director and business head at DLF Retail, according to ET. She added that brands across categories such as fashion, luxury, and gifting have already boosted inventories and rolled out early promotions.The upcoming July-September quarter is being closely watched after a rain-disrupted April-June period and 12 months of muted sales. Retailers are betting that discounts, estimated to be 20–50 per cent higher than last year, will draw in shoppers. A strong start to the season is expected to build momentum toward Diwali in October.E-commerce players are also joining the fray. Amazon is extending its Prime Day to three days (July 12–14) for the first time. “This year, for the first time, we’re extending Prime Day to three days,” said Akshay Sahi, director of Prime, delivery and returns for India and emerging markets at Amazon. The company has also announced up to 10 per cent discounts on select brands.Myntra is enhancing its MNow quick delivery service, particularly for gifting occasions like Raksha Bandhan. “We aim to cater to key occasions like Rakhi, where gifting takes centre stage,” said Ankit Dua, senior director, category management at Myntra, as per ET.Traditional FMCG brands are also eyeing early gains. Haldiram’s has already begun stocking festive packs for Teej (July 27) at its outlets and online. DS Group, which sells premium chocolate brands like Laderach and Luvit, is pushing festive bundling offers. “There would be much higher discounts compared to last year,” said Parle Products vice president Mayank Shah, adding that these will be rolled out across platforms.The Rs 900 billion retail sector had seen growth taper to 4–5 per cent over the past year from 9–10 per cent previously, according to industry estimates. Last year’s festive sales rose just 7 per cent, falling short of a 10 per cent target. However, the Retailers Association of India reported 7 per cent growth in May and expects 9–10 per cent growth in the coming quarters, reported ET.Jewellery retailers, meanwhile, continue to grapple with subdued consumer interest despite a Rs 5,000 fall in gold prices per 10 gm over the past fortnight. “Despite falling prices, there has not been significant interest among consumers,” said Surendra Mehta, national secretary of the India Bullion & Jewellers Association. Still, jewellers are restocking and launching new collections in anticipation of higher festive demand.Retailers like PNG Jewellers and Jos Alukkas are offering deep discounts to attract buyers. “We are offering lower denominations of gold and silver coins to widen appeal,” said Varghese Alukkas, managing director of Jos Alukkas. PNG Jewellers chairman Saurabh Gadgil said they would continue offering 50 per cent off on making charges until July 15 to clear old stock and attract footfall.With a strong monsoon expected to support rural spending, retailers are banking on an early and aggressive festive push to turn around sentiment and drive growth.