CROSS SWORD, Economic Times, 7th Jan, 2010

Category : Article

Appeared in the Cross Sword section of Economic Times, 7th January 2010

Yes, consumers can be labelled as “dealaholics” – because for many years they have been weaned on a diet of ‘Free’, ‘Extra’, ‘Sale’ and ‘More’

Ever noticed how a child who is used to watching cartoons on television while having food, cannot be made to eat when the television is off and the cartoon is missing? Or the teen who rebels against homework when deprived of the allotted internet time of the day? Addiction to deals starts early in life, creeps in slowly...and then becomes a habit, almost a way of life. That’s what we see today in the market too.

Walk into a mall with say, two shops stocking similar merchandise of footwear– one with no deal, one with a deal. No prizes for guessing where the bigger crowds will be. Whether these crowds translate into sales, depends on whether the brand is offering a true deal or a deal more in the realm of true lies (Buy worth 10,000 and get 15% off!).

But what is so addictive and attractive about deals to consumers? It goes beyond rationality and value, and is perhaps reflective of where we are today, as a society.
Consumption is the mantra we chant, shopping is the new entertainment, and deals enhance the “consumption as entertainment” quotient, by creating an (almost) magical climate for consumption. And of course, for those consumers who are still a bit abashed about their cravings, deals provide a kind of legitimacy to their profligacy (wasn’t I smart to have bought 2 pairs of shoes for the price of one??).

So yes, consumers can be labelled as “dealaholics” – because for many years they have been weaned on a diet of ‘Free’, ‘Extra’, ‘Sale’ and ‘More’.
What marketers need to watch out for is becoming “dealaholics” themselves. And instead focus energies on how to use this addiction, and channel it to the brand’s long term and strategic advantage.
Doing that is going to be a constant big deal.