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Luxury brands like Armani, Gucci and Versace start clearance sales early
2014/12/25 9:26:38 Source: indiatimes Author: 点击率:
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NEW DELHI: Starting with Christmas Eve, close to 100 high-end fashion brands including Armani, Gucci, Versace and Canali have gone on up to 40 per cent sale in Delhi's posh DLF Emporio mall, at least a week earlier than usual. Close to 90 per cent of over 100 retailers in Emporio, a destination for luxury shopping, are on sale to get rid of their old stock as it has been a "very erratic and tough year" in terms of sales.

"This year, the spending on luxury goods has been static due to various reasons," said Dinaz Madhukar, president of DLF Emporio, adding that sales picked up only after October. "Thanks to the general elections, the new government and the subsequent change in the overall environment, luxury shoppers were either lying low or being discreet," she said.

In the past years, most brands would put up the sale signs in January. This year, for most brands, sales picked up only post Diwali and a lot of stock is still lying in the stores, forcing them to advance clearance sale. Brands said the move is in line with global trends.

"In sync with the international trend, we have started the sale 15 days in advance," said Prem Dewan, retail head of Italian menswear brand Corneliani. "There is a pressure to clear old stocks before the new ones arrive," he said. Like many others, Corneliani is offering up to 40 per cent discounts. But the focus is not just on discounts. Some brands are organising preview evenings with wine and cheese to lure buyers into loosening their purse strings for those cashmere sweaters or high-heeled pumps.

Luxury brands like Armani, Gucci and Versace start clearance sales earlyThey are also giving their top clients a chance to make the best of the offers before opening up the sale to general public. Emporio, for example, has tied up with American Express to give its premium cardholders advance access to discount deals. Meanwhile, premium and mass retail brands, too, have taken a hit in sales this year, mostly because of the recently ecommerce boom. Shopping sites such as Amazon, Flipkart-Myntra, Jabong and Snapdeal have eaten into the shares of physical retail, leaving a lot of unsold inventory in the stores for most companies. For example, Nijhawan Group, which operates about three dozen stores of Benetton, Adidas, Levi's and Nautica among others, has seen about 15 per cent dip in its overall sales this season.

"Christmas is not the way we had expected to go," said Arjun Nijhawan, director of Nijhawan Group. Brands like Sisley and Adidas are expected to go on sale earlier than usual this year, he said. Attractive discounts provided by online companies was severely affecting the brick and mortar stores, he said. "There has been 6 per cent de-growth in like-to-like sales for my stores in December," Nijhawan added.

Another retailer that felt the heat of heavy online discounts is Kapsons Group, which operates around 200 franchised stores of Tommy Hilfiger, Benetton, Calvin Klein, Levi's, Puma and US Polo among others. "For us Christmas is always fresh season and sales starts from the mid of January, but this year sales are down 10 per cent-12 per cent compared to last December," said Vipin Kapoor, chairman of Kapsons.

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