Abstract
Ever since the online retailing format has emerged in India, consumers now have wider options available for them to buy a product at a discounted price and notably, as online stores in India are following the product discounting as one of the key drivers for consumer acquisition, consumers’ perspective towards discount at brick-and-mortar store has changed.This change in consumers’ perspective has put the majority of brick-and-mortar retailers in India into a quandary and they are losing out their market share slowly to online retailers. In this research which is based on recommendations of empirical research previously carried out on the impact of changes in retailer and consumer perspective towards discount post emergence of online stores in India, we have carried out multiple experiments on multiple long-term discounting frameworks to investigate and recommend brick-and-mortar retailers on ideal(a) frameworks, (b) duration, (c) types, (d) assortment coverage, and (e) advertising techniques for long-term discounting strategies to enable brick-and-mortar retailers to design appropriate sales promotions to gain a competitive advantage over online retailing on the discount component.
Highlights
Even though it is very hard to build a sustainable business model using strategies mainly based on price wars, it is inevitable that the brick-andmortar stores in India will have to ascertain specific strategies head-on to deal with this increasing loss of market share to online stores
Post the emergence of online stores in India, the majority of brick-and-mortar retailers in India are bewildered with continuous discounts, deals, sale promotion events, coupons being offered by the online stores throughout the year and they are not able to design appropriate sales promotion programmes
Discounts if offered to select consumers on select product/category for a shorter period of time could possibly (a) attract only relevant consumers who were planning to purchase these products, (b) distract consumers for whom the product/category on discount offer is either irrelevant or already being bought, (c) create a perception in consumers mind about discount levels available at their brick-andmortar store higher than that of an online store on a consistent basis, (d) negate the loss or reduced gross earnings in the discounted product/category through regular sales from non-discounted products/categories
Summary
This new retailing format, ecommerce is projected to grow to 62.3 billion US$ by the year 2023 which is at 32.34 billion US$ in the year 2019. Such a significant increase in the market share is attributed mostly to the rapidly increasing penetration of smartphones and internet users. E-commerce has been able to expand its market consistently in India Owing to this new retailing format consumers have the widest product assortment offered to them at discounted prices. Post the emergence of online stores in India, the majority of brick-and-mortar retailers in India are bewildered with continuous discounts, deals, sale promotion events, coupons being offered by the online stores throughout the year and they are not able to design appropriate sales promotion programmes
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