After online, traders offer huge discounts

Hyderabad: The rising food prices have forced middle and lower income families to spend less for this Diwali. Families are spending 43 per cent less this Diwali, a survey conducted by Assocham has found. The high cost of basic food and an unstable economy have pulled the consumer back from spending during this festive season. The survey showed that during the festival season, people spent 90 per cent of their income on sweets, 86 per cent on clothes and 53 per cent on gifts. These three are priorities and if any funds are left over, only then do they go for electronic goods. But, 70 per cent respondents said they are not going to indulge in unwanted spending this year. Amit Dixit, a cloth merchant at M.G. Road said, “This Diwali has been rather cold as the customer is not willing to spend more than what is necessary. The mood is downbeat and any amount of deals is not coaxing them to go ahead and purchase.”

Most customers are looking for 50 per cent discount, while 29 per cent go for “buy one get one free” offers and 15 per cent look out for “buy two for the price of one” deals. Off-line traders are desperate, as they have seen a dip of 40 per cent in sales. Mukund Reddy, a retailer at Abids said, “The discounts offered online have forced us to slash our prices on products. The number of customers has dipped and those who come compare prices online and then bargain. This is becoming a major problem. Most of the dent is being seen in clothes, electronic goods and fashion accessories, and stocks are not selling like last Diwali.”

Indulgence seems to be a no-no this year as many families in residential colonies and apartments are not willing to organise lavish parties as they did in the last few years. Sujatha Sharma said, “For many women, managing the grocery bill has become the priority. Earlier, the expenses were managed in Rs 4,000 per month but now they have jumped to Rs 6,000. If there are guests add another Rs 2,000, which is forcing us to slash all other unwanted expenses.”