Traditionally discount sales used to be given a few times (1-3) every year, Diwali, Year ending and may be one more season. But now we have discounts all through the year. The purpose of a discount sale used to be one of the following (mostly)
- Beating competition during rush hours ! (Diwali, school opening)
- Money generation during dull season - Aadi / Sharad (Bad time to buy new stuff according to Indian mythology)
- Bring in new customers - Opening of a new store
Now-a-days discounts have only one purpose - increase revenue. The revenue increase is mostly at a cost, which is profit ! Most online marketplaces run on a loss so they can achieve increased review, which brings with it a lot of new customers.
The question is, will this cycle end up with loyal customers or a failed company like Kingfisher...
