Fashion and lifestyle brands push online discounts to stay afloat

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Shweta Singh, a 24-year-old graphic designer based in New Delhi, placed an order online for a pair of sneakers. “I got these high performance shoes for almost half the price. As my office asked me to work from home until July, I started doing the gym at home and needed shoes, ”she said.

Lifestyle and fashion brands are offering attractive 20-50% discounts on new collections and additional offers on prepaid orders to entice customers and boost sales as part of the nationwide lockdown.

Brands such as Vero Moda, Woodland, Puma, Bath and Body Works have adopted a “buy now, ship later” policy and have offered offers on e-commerce platforms, as well as on their own websites, to maintain sales like most offline. stores remain closed and incomes dry up.

Third-party e-commerce platforms such as Myntra, Tata Cliq, Ajio, Koovs.com and Shein have also started taking orders for delivery to the orange and green zones.

The discounts will help ease the cash burden on retailers and also keep customers interested in brands as the country gradually returns to normal, according to retail experts.

Fashion is one of the hardest hit categories due to the lockdown, said Ankur Bisen, senior vice president, retail and consumer, at Technopak, a management consulting firm.

Fashion items have a shelf life of three to four months, except basic fashion, Bisen said. Brands run this inventory quarterly and that’s how it becomes capital efficient. This cycle has been disrupted by the lockdown, he said.

“The current inventory of brands will no longer be relevant once the market has fully opened up, which has created liquidation pressure. Brands must sell their inventory. Therefore, they entice consumers (through discounts and offers) to buy products, ”he explained.

However, many bargain hunters will not hang on to online shopping despite the discounts, noted Internet economics expert Sreedhar Prasad. There are around 100 million online shoppers in India, of which only 30% are repeat buyers. Of these, only a part is not financially affected by covid-19. This segment of consumers will buy at that time.

“I believe these buyers are not motivated by discounts. They have stable jobs with steady income and stable savings, they don’t mind spending ??2,000 or more, ”Prasad said.

Bisen added, “Fashion-conscious consumers who have been eyeing high-priced designer shoes or clothing available at a reduced price will eventually buy. “

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