Companies offer freebies to beat slowdown blues

From consumer electronics and automobiles to hotels and real estate, freebies and discount schemes are being offered in a more innovative way than before 

MUMBAI: Sign up for three months and get the 4th month membership free, screams an ad from Talwalkars. The fitness chain is not the only one luring consumers using the good old marketing mantra of discounts. Beauty salons have announced "happy hours", while aspirers of high-end mobile phones are flashing iPhones and Samsung Galaxy phones, thanks to equated monthly instalment (EMI) schemes and cash-back offers on some of these iconic brands.

Consumers never had it so good in a long time. From consumer electronics and automobiles to hotels and real estate, freebies and discount schemes are being offered in a more innovative way than before — all that to spur demand at a time when the consumer sentiment is low. While Standard Chartered is offering a 5% cash back on EMI transactions for the iPhone 4 for a limited period, there is a 15% cash back on select Samsung Galaxy phones on a 12-month EMI programme. Six-month and 12-month EMIs, said Vijay Sales' managing partner, Nilesh Gupta, are driving sales of high-end mobile phones. Others like Sony Xperia Z are throwing in free accessories.

Discount schemes in the consumer durables and consumer electronics sector, where growth has been flat, are different, largely because it's a long-term purchase. Onida is offering zero down payment, zero interest rate and no processing fee, free installation and exchange benefits of up to Rs 10,000. There are certain air-conditioning brands offering free installation, which is like an indirect discount of around Rs 1,500-2,000. Even on low-value items such as cookware, Sunflame is offering Rs 1,000 discount on select products.

MANISH KUMAR

PGDM 2nd Sem