Waiting for Diwali Sales? Be ready for disappointment
Waiting for Diwali Sales? Be ready for disappointment
Apart from the historical and religious significance, another reason why people eagerly wait for Diwali is that it brings a season of sale and discounts. Consumption is at its peak during this time. Manufacturers, retailers, wholesalers, and consumers everyone makes the most of it. But this year, the story might be different.
That time of the year is back when newspapers are full of sales promotions and advertisements of discounts. Big bill boards and hoardings of retail stores are put up on every street and locality.
New sale offers, discounts, freebies are dished out every second.
There is visible excitement among shoppers across all sections of society.
BUT.. this time.. the excitement is missing.
The vibrancy, the enthusiasm is somewhat lacking.
And the cause behind this dampener is none other than GST.
Yes, you heard it right. GST is the cause why festive season is not evoking the same emotions as before.
Let me explain you how..
In run up to GST, manufacturers went on stock clearance spree to clear their pre GST stocks and dished out products almost at half rate.
With such heavy discounts already offered, manufacturers are not in a position to offer discounts and offers now.
Most consumer durable manufacturers will refrain from giving any deep discount.
Besides, high metal prices are another dampener. Input costs have increased with metal prices going up by around 10%
It is speculated soon after the festive season, prices may increase by by 3% to 4% due to increase in costs.
Prior to the GST implementation deadline, companies undertook a massive stock clearance bid with hefty discounts. But with restocking not gathering up steam and slow momentum, they cannot afford to reduce prices or offer discount again.
Unlike last year, when consumer goods firms offered discounts in the range of 25-35% in the case of old stock, and as high as 50% on new stocks, this festive season, industry experts point out that discounts will range from 15% to 25%.
Even multi-brand retailers like Whirlpools too agree brands have kept off deep discounts.
However, like every cloud has a silver lining this scenario also has a ray of hope in form of e-retailers.
E-commerce companies like Amazon, Flipkart and PayTm continue to offer deep discounts. This may force offline retailers to increase their discount margins.
A lot depends on the kind of discounts which are being offered by online players. Even as manufacturers may go slow on discounts, retailers may take a step ahead, especially to counter the offers given by online players.
So its for sure this Diwali will be a bit sad due to these reasons. But we must ensure to spread love and kindness for the original reasons why Diwali is celebrated and not let few bucks dampen our spirit.
