Retailers and brands in India have reported a record-breaking business during the Black Friday weekend sales, driven by heavy discounts and marketing efforts.
The sales were almost 70-80% of what they would achieve during big shopping periods like Republic and Independence Day sales.
Company achieved almost 70-75% sales – Lifestyle International
According to Devarajan Iyer, CEO of Lifestyle International, “Black Friday sales have been pretty good and a lot of stock has been liquidated.” He added that the company achieved almost 70-75% sales of what it does during Republic and Independence Days.
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Marketers believe that the high discounts offered during the Black Friday sales drove sales. “Indian consumers love discounts. While discounts have been commonplace nowadays, deep discounts offered during the Black Friday sales created an incentive for consumers to come out to buy something since they have been deferring their demand for a while now,” said Santosh Desai, a social commentator and brand expert.
Further, Nilesh Gupta, director of Vijay Sales, a leading electronic retail chain, said that the company recorded 75-80% of the business it achieves during big shopping days. “There were discounts on smartphones during Black Friday which as a category instantly drives sales. Televisions and appliance sales too were brisk. Brands undertook heavy marketing which had a positive rub-off effect. In 1-2 years, Black Friday can be as big as Republic or Independence Day sales in India,” he said.
In addition, the Black Friday sales saw good footfall in malls, with top brands such as H&M, Levi’s, Skechers, Samsung, LG, Xiaomi, Puma, and Adidas offering heavy discounts across most of their merchandise. “The Black Friday sales were a hit this weekend. Footfall and sales went up by 30-40% in many brands compared to last year’s sales. We are hoping that with this weekend consumption buoyancy will return back,” said Pushpa Bector, senior executive director and business head at DLF Retail.
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E-comm. discounts drive higher sales than physical stores
An executive at a prominent apparel brand said that discounts of up to 70% on platforms like Amazon and Myntra drove higher sales online compared to physical stores. Even luxury brands such as Michael Kors, Coach, Guess, Swarovski, and Tommy Hilfiger were being sold on discounts of up to 70%.
The Black Friday sales in India have been gaining traction in recent years, with more brands participating this year. The sales started last Friday and continued till the weekend, with some even extending it to Monday. Marketers have been trying to develop Black Friday as a property to push sales after Diwali, which has always been a lull period.
Most brands and retailers matched the scale of discounts during Black Friday to that of Independence Day and Republic Day, which are big revenue grossers. Executives said this was because they were trying to clear unsold inventory after the festive season. The festive season this year was an average one, with a sudden deceleration in urban demand reported by brands in the past two quarters.
