Dont Discount Them ; Consumers Clamour for Rebates All Year Round.

Summary

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You've heard plenty about the Indian middle class' rising purchasing power and rising disposable income; yet when it comes to a discount, few are able to look a gift horse in the mouth certainly not the ubiquitous price-sensitive, valuefor-money consumer. According to consultants McKinsey &Co., almost 40 per cent of branded apparel sales in India come from discounting. Retailers are focussing on this market aggressively, which is why there is a surge in retailers offering yearround discounts, ranging anywhere between 30 and 70 per cent.

Future Group's 18-month-old value format called the 'Brand Factory' sells national and international fashion brands at 25-50 per cent discounts. The store has over 150 brands such as Arrow, Esprit, Van Heusen, Levi's, Reebok, Lee, Pepe, Wrangler and Provogue. The group has six stores (ranging between 40,000 and 80,000 sq. ft) currently, and plans to expand to some 50 outlets by 2010. Every brand needs to sell some of its stock on discount. It's a global phenomenon and that's why, in India, channels like Brand Factory have become viable for labels, says Rajesh Seth, Vice President, Marketing, Brand Factory.

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Dont Discount Them ; Consumers Clamour for Rebates All Year Round.

The Loot is a similar format that started with 10 brands three- and-a -half years ago. Today, it caters around 60 brands, in 30 stores in 13 citi...

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