Zero in on V-Day, jewellery retailers offer freebies

Consumers' retail spend on gifts for Valentine's Day and International Women's Day, two occasions that retailers were expecting to cash in on, will see 60% to 70% dip this time round, as compared to the previous corresponding period, say retail industry experts.

Retail majors too are having constraints over the budget as there is around 50% to 60% dip in investments in the Valentine launch and other new marketing initiatives and consumer promotions, during the first quarter of the calender year 2009, as compared to the previous corresponding period. Hence, retailers want to cash in on the opportunity by launching new marketing initiatives, consumer promotions to include huge discounts and freebies to ensure at least over half of the 100% value sales.

According to Sadanand Pawar, president, Gitanjali Gems, "We are launching new designs in silver fashion and diamond jewellery with heart-shaped pendants early next week. These products will be available to consumers with freebiees concept and combo offers will be marketed through 100 franchisee stores and 36 retail showrooms. Although the investments are similar to the previous corresponding period on Valentine promotions, looking at the current market sentiments, we hope we will meet complete sales target as per the expectations."

Pratik Parikh, business development manager, Cygnus Fine Jewellery told FE, "We have constraints over the budgets as compared to last year looking at the market situations that are prevalent as of now. There is around 50% dip in investments in the Valentine launch and other new marketing initiatives and consumer promotions."

Parikh added, "Looking at the current market sentiments, we will surely not pick up 100% results, but will achieve 80% of our set targets, for the first quarter of the calender year 2009. Last year, the sales for Cygnus were just average compared to the expectations. As we all are aware, due to the economic slowdown, we are not looking forward to break our records as every year scenario." For Valentine's Day, the outlet will have special promotional offers and discounts and freebies, Parikh added. Suashish Diamonds too plans to launch gold diamond jewellery with new designs for Valentine Day, which will be available to customers for limited period. Said a company source, "The jewellery range will be less as compared to what was launched during the last Valentine Day."