Leading apparel brands said there will be no major discount in the upcoming online festive sales as they are focussed more on full-price sales during this period.
Biba managing director Siddharth Bindra said Diwali is a full price season for apparel, and variety and new collection would drive sales. “Online retailers are seeking exclusive tie-ups more than discounts,” he said.
While there will be a substantial price cuts for online exclusive apparel brands and private labels, which in any case have bigger margins, other brands aren’t keen to sell their products with markdowns.
“It’s not like we will miss the bus if we don’t sell on discount. Online as a channel is here to stay and discounts will be mostly on old season merchandise or liquidation stock,” Sanjay Vakharia, director at Spykar Lifestyles.
Several apparel brands claim that online companies are now chasing profitability and are not over-ordering merchandising to get bulk discounts only to return unsold goods later.
“We have a strict policy of not taking back unsold goods and we now see online companies ordering more prudently. We have also asked them not to use our brands for promoting discount days or deals as we are selling them at full-price,” said J Suresh, managing director of Arvind Lifestyle Brands, which sells brands such as Gap, US Polo, Arrow and Calvin Klein. The company also has an exclusive tie-up online with Amazon for its brand Aerpostale.
Meanwhile, online sellers body – All India Online Vendor Association, said big sellers like WS Retail and Cloudtail will drive maximum deals and benefit the most during the festive sales.
The spokesperson of the body said normal sellers may face the brunt of marketplace policies and restrictions such as delayed deliveries to customers and attempts to resolve these has turned out to be futile till now.
Click Here for Original Source – Economic Times