The man behind this heavy discounting is the CEO of the Ministry of Fashion, Yogendra Sharma. Yogendra claims to “have taken a more proactive line on marketing, offering 70 percent off across brands, but denies that it has anything to do with the market situation.” He goes on to say, “We are positioning ourselves as an aggressive player in this market.”
Hmmm, while it's good to be proactive, heavy discounting is not the best marketing strategy, or the answer to a long-term, sustainable and, need we say, loyal business.
Meanwhile, in the same New Delhi mall, other key luxury brands, such as Louis Vuitton, Hermes and Cartier, are maintaining their 'no markdown' stance. We guess that's why they have been around for a very long time – their strategies are long term and not a knee-jerk reaction to the alleged recession. They are also entering India, an emerging market, incrementally and with a considered approach. Other brands, beware, India may well be the new China, but the brands needs to gain respect from the consumer. We will say no more and let the customers decide.
Read more about this in the India Times article, Time To Go Luxe, and make up your own mind.