Retailers are offering deep discounts on various categories of products such as kitchenware, electronic items, apparels, etc., to unload the piled up inventory. Offline retailers are offering discounts in the range of 10-30 per cent, whereas online retailers such as Amazon, Flipkart are offering discounts in the range of 10-80 per cent.
According to Praveen Khandelwal, National Secretary General of Confederation of All India Traders (CAIT), this year, the discount level is more compared to last year due to high inventory pile-up in the wake of slowdown.
Khandelwal adds that last year the discounts averaged from 5 to 10 per cent. This year, those are in the range of 10-30 per cent. For the unsold stocks lying for last one year, the discount is more than 30 per cent to corner more market share.
According to the brand strategist, Harish Bijoor, the market was gung-ho for a long time as the consumption was only soaring. Keeping with that, the manufacturers created a huge inventory, which has got stuck all of a sudden due to the slowdown. Now, the best way to clear the inventory is to get the goods keep going at deep discounts.
Most retailers are going through a tough time because of squeezed margins due to deep discounts, which has to be carried out to maintain cash flow even if they incur loss because of that.