Unfortunately yes ! thats the price retail is paying today for its troubles. In a country like ours price plays a very crucial role. You should have deep pockets and patience to back your brand to sell normally in the marketplace. This has of course to be achieved through a higher level of branding and marketing. Real estate prices are so high that shops in Malls does add to a brands value but with virtually no sales happening, they are reduced to SALE type of promotion. Having said that i agree with Virag that brands are indeed becoming smart in their pricing. The sale that you are so delighted to attend is not a genuine sale anymore as the prices seem to be jacked up initially and then offered on a discount. And yes, quality is bound to suffer as brands simply cant afford to go on sale and still offer high quality, however genuine the sale might be ! That is why i am for FDI in retail coming in so that indian companies to can tap the markets abroad for funds plus the quality concerns will be addressed to a great extent with foreign competitors bringing in high levels of service delivery at reasonable prices. The next couple of years will decide the future of retail in india. Not just in garments but across the board especially in mobiles and IT products.
By
Jaygopal Raghavan, Marketing Manager, Landmark Group
| 03 24 2012 18:54:42 +0000
yes i totally agree..The quality is deteriorating and the faith,the loyalty for the brand is decreasing .people are becoming switchers.
By
Aon Maniar, MBA/PGDM student, Unitedworld school of business
| 03 24 2012 09:30:21 +0000
In my right hand side,i am looking a advertisement of brand Reebok shoe of 69%off of Price Rs.999.See the premier company giving a rebate of more than half the initial cost,So it may be a business with marketing strategy,but it leads to introduction of low quality product with lesser price.
By
VIMALAN , DIRECTOR, VIRGIN ENGINEERS
| 02 03 2012 16:20:05 +0000
yes Meena I agree . The manufacturers cannot go on reducing the price and give best quality
By
BALASUBRAMANIAM PALANIAPPAN, National Sales Manager, LENOX INDIA PVT LTD
| 01 28 2012 16:04:45 +0000
I want to support your statement, Meenal, very correctly said.
By
SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd
| 01 27 2012 06:00:49 +0000
no brand is very small part in total sale in india instead of foreign because in india peopole are habituaL TO PURCHASE cheapear items instead of costlier due to their salary is very low and very few percentage of people are able top purchase branded items but it doesnt mean branded items cost should be down or they downgrade theis quality the branded items are available for only high class incoe person instead of common man
By
kamal2247 , Legal Advisor, heigh court
| 01 21 2012 17:01:05 +0000
demand and supply is the main factor for any business in this world but the fact is some products which has standard price lists of products are not changing the difference is faced only to those companies which are new and are struggling to stand up in the competitive market
By
siddivineetkumar , OPERATIONS HEAD, AKSHARA EVENTS
| 01 20 2012 17:45:58 +0000
I am very thankful to Ms. Meena Deshmukh for putting this topic and including me in it. I should say yes. But i think it is good for an intelligent customer. Intelligent Customer means the customer who looks value for his money and gives more importance to the quality. There are many hidden factors which is coming in front which was kept away from the customers. This price war may result in some brands vanishing away, some brands becoming more quality conscious and some new unique brands and products coming up. That way yes it is going to be helpful to us customers. So let us be positive and see that this situation may yield good result for us.
By
suraj p g, Chief Financial Planner, Thangam Wealth Management
| 01 15 2012 18:14:45 +0000
In order to sell products cheaper orhanizations resort to all kind of short cuts which lead to supply of inferior quality products. They may last for the warranty period with out much problems but life is short.
By
Cyril S M, General Manager & Head - Marketing - High Mast, Bajaj Electricals Limited
| 01 15 2012 13:36:32 +0000
In the competitive business world everyone wants to survive. For this different business houses attracting consumers by reducing prices. Due to reduction of price low quality of products are introduced in the market. This ultimately downgrading the brands
By
Saquib Alam, B.A (sociology), BRA Bihar university
| 01 15 2012 08:04:40 +0000
I agree with Meena,that brand value has been down graded. The gimmick is to maintain the presence of brand. I find fabric of poor quality under sale items.
By
Mohammad Bakhsh, Consultant(Civil), Rail Vikas Nigam Limited
| 01 14 2012 09:54:54 +0000
The problem here is marketers have overdone with the sale thing. And customers too think they are getting a good bargain and wait for a sale to happen. It is definitely degrading the brand be it downturn or otherwise. A good case in example is Colourplus which some years back used to be on sale throughout the year and the manufacturer at that time started producing cheaper quality goods only for Sale. As a result the brand still suffers today even though it is now part of the Raymond stable. A better strategy would be to lower the price and keep profit margins to the minimum during a downturn only to increase once the cycle of good times happen.
By
Jaygopal Raghavan, Marketing Manager, Landmark Group
| 01 13 2012 18:42:52 +0000
yes you are right Meena
By
dilip naik, News Editor, News Channel
| 01 13 2012 18:24:21 +0000
The global market place can no more afford to brag about consumer loyalty.. The recession is killing the purchasing power of the consumer.Therefore a brand has to remain affordable to survive. Price war is a tactical warfare among the brands to keep their profitability in shape. Of course they tweak and play with the quality of their product to post a healthy margin.Customer is rather happy taking home a brand than fuss over their quality.
By
KR BALA, Providing HR Services, Independent HR Consultant
| 01 13 2012 07:41:28 +0000
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not at all. Majority such things happen in Retail sector, home appliance and many other segments. But, it does not mean that, it values go down. Majority today the war is going about "Pricing" as well as brands are finding innovative ways, promotional ways to push up pricing strategy.
By
Virag Shah, Confidential
| 01 14 2012 16:48:40 +0000
It's just that we've seen an emergence of a large number of brands with similar offerings (be it any sector) vying hard to gain more of the market share (cookie clutter market) which requires them to adopt such strategies. The good thing most of them are able to attract good number of customers.
By
ashok kalra, student, Delhi school of manegement
| 01 13 2012 11:35:14 +0000
I don't agree with u.
By
Diwakar Tiwari, Chief Manager, THE Arvind LTD
| 01 13 2012 09:16:15 +0000
If the quality goes down then there will be no sales in the next sale whether christmas, new year, sankranti and so on. The question of drop in the quality does not arise as the brand cannot sustain its market. In these sale shows the brands are depending on larger turnover than the brand name to over come slack periods to sustain their market share and that is the market strategy.
By
kanukurthy sudershanrao, Operations Manager, Andhra Bank
| 01 13 2012 08:14:57 +0000
There is no technological advance for any player in the market. All products are homogeneous in nature. Customer is regarded as the king today. Price and service are only the cutting edge for the players in the market. Those who compromise on quality may not withstand in the market and succumb to competition. Established brand cant compromise on quality for price sake.
By
Srinivas suravajhala, Asst. Manager.
| 01 13 2012 07:35:28 +0000
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