Retailers expect less people in market after festivals
With the global liquidity crisis threatening to dampen the mood of Indian consumers, leading consumer brands have taken a wait-and-watch approach before narrowing down their strategies for the future.
By Sreeradha D Basu, ET Bureau |
KOLKATA: With the global liquidity crisis threatening to dampen the mood of Indian consumers, leading consumer brands have taken a wait-and-watch approach before narrowing down their strategies for the future. While Diwali is still slated to be relatively good, there could be a lull after the festive season.
���This overall slowing down of the economy isn���t doing anything good to consumer sentiments,��� said Levi Strauss (India) MD Shumone Chatterjee. ���The Pujas were good for us, and we expect Diwali to do well too. But once that is over, we expect a lull. People will curb impulse buying and be less frivolous about the choices they make. Buying will be more need-driven,��� he added.
And quality-driven. Once the festive season is over, retail circles expect only serious shoppers who will indulge in brands that guarantee quality. And top brands are hopeful that they will be significantly less affected than lesser-known brands. ���We expect all our brand-building exercises of the past to bear fruit during these tough times,��� ITC���s Lifestyle Retailing divisional chief executive Atul Chand told ET. Wills Lifestyle will be launching new collections every six weeks and engage more actively with women customers, he said.
Levi Strauss too is optimistic about the tougher days. ���Our strategy is to cater better to heavier consumers. We will have fresh lines after Diwali so that consumers will be tempted,��� said Mr Chatterjee.
For most brands, however, their post-Diwali strategies will depend on the sales witnessed during the season. Raymond Apparel president Shreyas Joshi, for example, said it would be difficult to make judgements till the Diwali season is over. ���Overall, store sales have definitely dipped compared to last year, though the Pujas went very well. Right now we are not thinking long-term. We prefer to take one month at a time,��� he said.
Incidentally, while Levi Strauss India has gone ahead with its plans to launch luxury jeans with designer Tarun Tahiliani, it has deferred the launch of a brand-new product category it was contemplating earlier. ���This is no time to indulge in related diversification. We are dividing the year into four quarters and taking our learning from each,��� said Mr Chatterjee.
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Pantaloons CEO Sanjeev Agrawal refused to comment on its future plans. ���Currently our sales are quite positive and we have witnessed a very strong sales growth. Future growth will depend on individual strategies of players in the business,��� he said. Talking to ET in Ahmedabad, Future Group chairman Kishore Biyani denied any slowdown fear in the retail industry as Indian consumers anyway spend mostly on essentials like FMCG, consumer goods and garments, which he likened to ���roti, kapda, makaan���.
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