Demonetisation: Cash-less buyers force brands to offer freebies

Those who thought the big discounts and sales had ended with Diwali are in for a surprise: demonetisation has resulted in retailers offering out-of-season rebates and incentives to lure customers back. Fashion brands are going the ecommerce way after the invalidation of Rs 500 and Rs 1,000 notes, offering promotions, cashbacks and discounts during the full-price season to reverse a trend of dwindling sales and fewer footfalls and save the October-December quarter from becoming a washout.   Astrology and Numerology Trading Tips



"Post Diwali, we don’t run promotions. But when suddenly 40% of the customer base disappears, then what do we do?" asked Kavindra Mishra, managing director of Pepe Jeans.




While stores take a leaf out of the typical ecommerce strategy of cashbacks, online retailers have substantially increased discounts for customers using cards. Myntra is offering an additional 25% discount on purchases above Rs 1,299 paid through debit and credit cards and Jabong has the same benefit for online payments of Rs 999 and more.  Future & Option Trading Tips



"The discount is being offered to encourage people to use cards," a spokesperson for Bengaluru-based Myntra said in an emailed response. "The offer was started on November 9 and has seen a good response with prepaid transactions increasing by 30%."   Nifty Trading Tips



While Tommy Hilfiger and Benetton are offering promotions, Superdry and Marks & Spencer are trying to draw customers with discounts and cashbacks. Pepe Jeans has gone a step ahead by giving additional discounts on card transactions. Marks & Spencer has an additional 10% cashback on card payments and Pepe Jeans offers 5% off.