Festive offers to push sales

 Sales in the apparel industry decreased by 50 per cent
Kathmandu

Abhilasha Rayamajhi

The festive season is around and it is time for retail outlets to display their best apparel.
However, this year the festive season seems lacking in cheer as sales are yet to pick up unlike previous years. The retail apparel industry has been hard hit by the earthquake and its aftermath followed by the Tarai unrest. Businesses also report that the monsoon was a dry season for sales in the clothing industry.
With the arrival of the festive season, retail clothing and apparel outlets in the valley are offering attractive discounts to lure customers and push sales. Sale schemes and price reduction offers are common in almost every store around the valley. Enterprises have implemented minimum pricing strategies and indulged in promotional campaigns to increase footfall.
However, despite all this sales are lower than expected and have traders worried about how to increase sales.
Raj Bikram Shrestha, Owner of Belleza Kloths, Durbarmarg says, “We have offered upto 50 per cent discount on 90 per cent of our clothes and accessories.”

Photo: Sanu Raja Maharjan

He shared that April/May was the peak season for sales as it was the wedding season. However, most orders got cancelled due to the national disaster. He adds, “This is the first time we are offering such huge discounts in our store.
Today, it is better to sell at minimum profit rather than have no sales at all.”He reported that they import stock from India and most of their goods are stuck at the custom points in the Tarai region.
“The quantity of imports has significantly decreased. Instead of getting 100 pieces we are only getting five pieces and that too after delays with security escorted vehicles,” he said. In such a situation it is difficult to carry on business, he added.
The store deals with traditional wear mainly for festive and wedding occasions. According to him the price range of products at Belleza starts from Rs 1500 and go up to Rs 50,000.
Stores in Durbarmarg and New Road also are going all out with special festive offers and discounts. DS Collections in Durbarmarg offers a flat 50 per cent discount in almost all the items. “As compared to last year our sales have decreased by almost 50 per cent,” says Prabha Shrestha, Owner of On The Way store at Old Baneshwor.
According to her they have put up mostly last year’s stock and new arrivals are stuck at various border customs points. She said that the store will sell at the minimum fixed price. Only five to 10 per cent discount will be offered to the customers for Dasain. She claimed that their products are reasonably priced unlike other stores that hike the price and offer more than 50 per cent discounts. The store offers products with a price range from Rs 500 to Rs 2000.
Khushbu Thakuri, Proprietor at Pink Princess, a retail clothing store in Dillibazar shared a similar story. According to her, “Last year during Teej, many girls and women purchased red gowns and dresses. However, this year sales have dropped drasstically.” The outlet plans to try to recover sales during Dasain and Tihar by adding more traditional wear to their collection. The store offers ladies tops, dresses and pants ranging from Rs 1000 to Rs 3500.
The store offers 20 to 25 per cent discount during the festive season.Smriti Bajracharya, Owner of Posh, Durbarmarg, says, “The earthquake and its aftermath did not really affect our business. However, political unrest and turmoil has had an adverse impact on the entire industry.” The store has loyal and repeat customers, according to her.

Photo: Sanu Raja Maharjan

She shared that she herself hand picks the outfits from Bangkok and China. Posh also offers reasonable prices on apparels, Tops ranges from Rs 1200 and go up to Rs 1800. Similarly dresses range from Rs 1800 to 3500, shoes from Rs 1500 to Rs 3500 and bags from Rs 1400 to Rs 3500 according to Bajracharya.
Most retail outlets in the valley are also actively marketed on social networking sites. They display their latest arrivals on their official Facebook pages. The footfall at clothing stores have also decreased significantly due to the shortage of new arrivals. Most store owners are cautiously hopeful about the festive season. They plan to introduce new schemes, promotional activities through social media and huge discounts to attract more customers to at least meet overhead costs.

---

A version of this article appears in print on September 27, 2015 of The Himalayan Times.