Until a few years ago, shopkeepers wouldn't have time to even breathe on a festive occasion because customers would arrive at their shops in significant numbers to buy all sorts of products. But, over time, the trend of buying on festive occasions has near about vanished, as even around Dussehra, there were hardly any shoppers in the market.
Traditional retailers place the blame for this on online retailers like Amazon, Flipkart and Snapdeal, which offer significant discounts on several products, especially on the occasion of a festival and sometimes throughout the year as well.
Felipe Alvares, owner, Prime Electronics said, "Online retailers sell products at ridiculously low prices. Besides, Goa is internet savvy, as a lot of people have smartphones and they can easily make a purchase on their phones."
Alvares even mentioned that no manufacturer can force any sort of retailer, whether online or traditional, to sell a product at a certain price. This gives immense scope to online retailers to offer huge discounts on products thereby making a significant dent in the share of traditional retailers.
A retailer of small appliances like mixers and juicers, on the condition of anonymity, said, "It's not that the manufacturers offer huge discounts to online retailers. The online retailers buy products from some wholesalers, who at times don't even offer an invoice and are therefore in position to offer huge discounts."
Retailers inform that Samsung is the only brand that has created some sort of price parity between online retailers and traditional stores. But, then, most brands have not been able to do what Samsung has done.
Experts believe that with the roll-out of GST it will become very difficult for any businessman to not offer a bill as the whole system works on input-tax-credit basis. But still, its early days to say whether it will really bring some price parity between traditional and online retailers.
Meanwhile, online retailers are taking the game to another level. Alvares informed, "Some online retailers are even doing exchange of big appliances like refrigerators."
Earlier, people wouldn't trust online retailers, when it came to schemes like exchange.
But, online retailers have managed to build some sort of trust as well, which allows them to offer exchange schemes thereby making things even more difficult for brick and mortar stores. Although, online retailers have made life really difficult for traditional retailers, there are other issues as well, which are affecting the market.
Prashant Pangam, owner, Ashakiran Agencies (retailer of appliances), said, "There is a kind of slowdown in the market, which is partly attributable to GST."
Alvares corroborated Pangam's view, as he said, "First demonetisation and then implementation of GST has taken a toll on the market. Due to GST, price of most products hasn't changed, but customers mistakenly believe that prices have moved up."
A number of traders have earlier complained that they have little time left for business, as they are busy filing GST returns most of the time.
Another prominent retailer said, "Festive season sales are also affected now because people buy products across the year. Due to pay commissions, salaries of government employees have gone up. This has allowed them to buy products whenever they want. Earlier, people would save money all through the year and cautiously spend it on festivals, which is no longer happening."
Whatever be the reason, it is clear that the festival season party is over for traditional retailers, as customers are increasingly buying whenever they feel like thanks mostly to online retailers.
PARTY OVER
On festive occasions, customers are not turning up to buy products, like they use to do earlier
Traditional retailers complain that online retailers like Amazon and Flipkart give huge discounts, which is driving customers away from brick and mortar shops during festivals
Moreover, thanks to online retailers, customers can buy a product any time, which means they don't have to wait for festivals to make a purchase
Traditional retailers not in position to put pressure on manufacturers to ensure price parity between them and online retailers
GST and demonetisation too have played a part in slowing down the market
