Huge discounts are available during the festive season.Image credit source: Unsplash
The biggest business in the Indian retail sector is rations and FMCG, that is why everyone from Tata-Birla to Ambani-Adani to Amazon-Walmart are present in this business in India. But did you know that in the festive season that starts after Rakshabandhan, there is a huge demand for everything from cars to clothes, electronics and jewellery etc. in the country? Over the past few years, the country’s retail sector has been witnessing a battle between offline and online, so who will win this time? Let’s understand the complete maths…
Following the arrival of fast delivery e-commerce businesses like BlinkIt and Zepto in the country, people’s online shopping has increased. But during this period, the growth of modern retail business like Reliance Smart Bazaar and Jew cannot be ruled out. The good thing about the offline retail segment in the country is that every kind of entrepreneur, from small to big, has the opportunity to work in it.
There will be an avalanche of online discounts
The expansion of e-commerce has also made the government concerned about offline retailers as this segment provides employment to millions of people in the country. Recently, Commerce and Industry Minister Piyush Goyal claimed that the kind of practice being adopted by the e-commerce sector is destroying the employment of millions of offline retailers in the country. It is now the festive season and online players will bring huge discounts in the market. The shopping in the market has been on a decline for a long time, so this year we may see a rush of huge discounts in the season.
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Great war in the electronics and smartphone market
If we talk about the war between online and offline retailers, then it is most visible in the market of electronics, smartphones and gadgets. The increase in sales of e-commerce platforms during the holiday season comes from this segment. At the same time, about 30 percent of annual sales of electronics brands occur in the holiday season alone.
According to an ET report, around 1.5 lakh offline electronics retailers in the country have written to big brands telling them that major manufacturers are favouring e-commerce. The business of offline retailers may be affected by up to 50 per cent due to the possibility of heavy discounts on their online brands.
Retailers have raised this complaint against brands like Samsung, Poco, Motorola, Realme, OnePlus and iQoo. These 1.5 lakh retailers generate revenues of around Rs 30,000 crore annually.
Buy premium products offline
But a new trend is also being seen in the market. People are giving more importance to offline stores for buying premium products. According to a report by research firm Nielsen IQ, a 20 percent growth in sales of consumer goods and up to 60 percent in sales of consumer electronics is being seen during the festive season. While in the jewellery and apparel sector, sales by offline retailers continue to be better.
The festive season is considered very important in terms of shopping in India because during this time farmers get new money after harvesting. There are festivals like Onam, Diwali, Navratri, Durga Puja and Dussehra all over the country. Therefore, around 20 to 30 percent of the annual sales of most categories happen during this period.
