Brands profit while local traders lose

Small businesses are losing out due to sales offered at branded outlets

Bangalore: Sales are the highest for branded outlets during the discount period as garments are available at cheaper rates. The yearly sale of Pantaloons is Rs. 80 crore and during the discount period alone the sale is Rs. 50 crore.  More than 80 million pieces of garment are sold every year by Pantaloons. Out of this, 72 million pieces of garment are sold during the sale period. The discount is either given at 60 per cent or sometimes up to 70 per cent.

“We have maximum sales during the discount period as compared to the usual days. During the non-sale period, the store is not over crowded but it’s not completely empty either,.” said Ashish, an official at  the sales department of Pantaloons, on  MG Road.

Whereas, in K. R market the sales have fallen by 25 per cent since Pantaloons has started giving more discounts.  This results in the businessmen suffering losses.

“Every year, I sell more than 1.2 million cloth items but this is during the normal days. When Pantaloons or any other big companies provide sales, we suffer great losses, said Sahil, a shopkeeper of Garment shop at K. R Market.

“The Pantaloons outlets remain crowded during the sales period. There is hardly any sta2ff that is free during this time. The cash counters are flooded with people.” added the official at the sales department.

“It is very difficult to state the exact number of people who visit the outlet during the sale period as it is overcrowded and the staff is busy at work,” said Pujarini Ghosh, HR Manager at Pantaloons.

“I prefer to buy clothes from Pantaloons during the sale because it is cheaper. But on usual days I go to K.R Market to do the shopping.” said Mahesh, a frequent customer at Pantaloons.

“If I sell a pair of jeans at Rs. 1800 during a normal working day, during the sale period, Pantaloons sells the same pair of jeans at Rs. 1000. It is not possible for me to afford because I will run a loss in my business.” said Pankaj, owner of Garment shop at K. R Market.

This article was published in the softcopy – in house publication of IIJNM. Click here.

 

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