MediAvataar's News Desk
Leading apparel retail chain Reliance Trends has launched a nationwide brand campaign to announce its new brand positioning along with the new visual identity. The brand has taken on a youthful, contemporary and a more fashionable imagery. The campaign by Lowe Lintas Bangalore captures the creativity and spontaneity of today’s youngsters.
Being the change agents that they are, the youth of today prefer to do things differently. They like to shake up the status quo, by taking something old and familiar and creating something totally new and unique to make their personal style statement. This key insight is given voice in the brand’s tagline: ‘Trends bantey nahin, banaye jaaatey hain’ (Trends don’t just happen on their own, they are created.’)
Commenting on the new campaign, Akhilesh Prasad – CEO Reliance Trends said: “We live in interesting times. Fashion as we know it, has evolved tremendously over the last decade. Reliance Trends has redefined the value fashion segment in the country. Staying in sync with the times, we have unveiled our new brand identity and positioning, making the brand more fashionable and youthful. The launch film will showcase Reliance Trends in a new avatar and firmly establish it as ‘the largest destination for the widest range in value fashion’. This changeover marks a new phase of growth for us as we consolidate our position as the biggest fashion retailer in the country.”
The campaign comprises two 15-second films announcing the changeover, followed by a 60-second brand launch film, with 30 second edits as well. The main brand film throws light on the trends that the youth of today are creating and how they use everyday scenarios to influence lifestyle changes. Whether it is about bringing a change in the way they style themselves or the grooming sessions that inspire them to look different or even boredom that leads them to develop new ideas, the youth of today are in no mood to stop and always want to try out something new. The film has been directed by noted Bollywood Director Zoya Akhtar, maker of prominent films like Zindagi Na Milegi Dobara, Dil Dhadakne Do, Luck By Chance etc.
Highlighting the thought process behind the campaign, Hari Krishnan – President, Lowe Lintas said, “The launch of the new identity for Reliance Trends, was an opportunity to establish that Fashion & Trends go hand in hand. Our creative team along with Zoya Akhtar have created the right balance of high fashion and everyday relevance”
The campaign has gone live on popular television channels across the country and is being complemented by communication across online and Outdoor mediums as well.
Client: Reliance Trends
Agency: Lowe Lintas Bangalore
Creative: Arun Iyer, Abhijit Ghosh, Kishore Mohandas, Abhilash Divakar, Athira Rajeevan
Account Management: Hari Krishnan, Sonali Khanna, Anindo Niyogi, Melvin Sylvester, Arpita Sarkar
Planning: S Subramanyeshwar, Nikita Shah
Production house: LinProductions
Director: Zoya Akhtar
Will report to Ravish Kumar, Senior EVP - Colors Kannada, Super, Bangla and Odia, Viacom18
Viacom18, one of India’s fastest growing media and entertainment companies, announced the appointment of Rahul Chakravarti as Business Head of COLORS Bangla and COLORS Odia. A veteran with over two decades of experience across FMCG, management consultancy and advertising, Rahul has worked across multiple consumer focused categories in his career.
Commenting on the appointment, Ravish Kumar, Senior Executive Vice President - Colors Kannada, Super, Bangla and Odia, Viacom18, said, “Rahul has extensive experience of working in consumer packaged goods and consulting with a proven track record of managing businesses, building brands, leveraging consumer insights and solving business problems. His ability to marry strategy with execution and his understanding of consumer-focused businesses will help us in increasing our footprint both across our viewers and our advertisers. I welcome him into the Viacom18 family and look forward to working with him.
Expressing his excitement in taking on the new role, Rahul Chakravarti said, “The media industry is unique since its business is modelled primarily on a B2B structure but all constituents caters to the end consumer who votes with his remote. Both COLORS Bangla and COLORS Odia are established brand names and I look forward to working with the talented channel teams to propel these regional channels to greater heights.”
Rahul Chakravarti has taken over as Business Head of the two channels with effect from this week. He will be responsible for driving ratings, developing innovative content and increasing the reach and share of voice of the channels in the markets. Rahul is passionate about sports and competes regularly in marathons. He also loves reading and is an avid music aficionado.
Seven in ten (70%) urban, online Indians feel that this is a good time to buy things they want or need
The Consumer Confidence Index score for India in Q4 2016 has climbed three points to 136 from 133 in the previous quarter. India continues to lead the global index, and is followed by Philippines 132.
Established in 2005, the Nielsen Consumer Confidence Index is fielded quarterly in 63 countries, including India, to measure the perceptions of local job prospects, personal finances, immediate spending intentions and related economic issues of online consumers around the world. For Q4 2016, the survey was conducted between 31st Oct and 18th Nov, 2016. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.
"The three-point increase in the confidence index in the fourth quarter reflects strong economic and commercial performance at the end of the third quarter and at the beginning of the fourth quarter, further benefited by the timing of the festive season, when confidence typically rises," said Prasun Basu, president, Nielsen South Asia. "During the survey period, the Indian government announced demonetization of high-denomination notes. While this move created short-term constraints for consumers, the long-term outlook is bullish–a sentiment clearly echoed in other Nielsen research and by a recently released study by the Reserve Bank of India–thus strengthening the overall confidence levels for the next 12 months."
Job Prospects and Personal Finances
Sentiment levels on local job prospects over the next 12 months has gone up by three percentage points to 84% this quarter (was 81% in Q32016). Over four in five online respondents (84%) indicate increase in optimism on state of personal finance, same as the last quarter.
Discretionary Spending and Savings
70% urban Indians indicate it’s a good time to buy things they want and need over the next 12 month for the quarter. For the same quarter last year (Q4 2015), 65% of respondents felt that this was a good time for discretionary spending.
Putting into savings (65%), purchase of new technology products (54%), spending on holidays and vacations (53%) have been highlighted as avenues for utilizing spare cash for Q4 2016. Putting into savings (63%), new technology products (50%), holidays and vacations (47%) were the top three routes for Q4 2015.
When it comes to household expenses, this quarter 78% of respondents have indicated a change in spending to save on household expenses, five points lower than last quarter (83% in Q3 2016). This figure stood at 79% in Q4 2015.
For the fourth quarter of 2016 - Savings on gas and electricity (44%) , spending less on new clothes (39%), and cutting down on out of home entertainment (33%) are the focus areas of controlling spendings.
Job security (17%) continues to be the top ‘biggest concern’ for this quarter, followed by state of the economy for 14% respondents, and terrorism (14%). The second biggest concerns cited are state of the economy (16%), and terrorism (14%).
How algorithms can enable automated demand-led pricing
Dynamic pricing is the practice of pricing items at a point determined by a particular customer’s perceived ability and willingness to pay. This means there is no one set price for a particular item, but rather an ever-changing one that can respond to a real-time customer profile. Thanks to advances in high-performance computing and analytics, pricing on some websites now changes from minute to minute. For example, Amazon will tweak its prices many times per hour (equaling millions of individual price changes per day), taking advantage of the psychology of price perception. Uber has introduced its ‘Surge Pricing’ algorithm to ensure a high supply of drivers during times of exceptional demand. Electronic Shelf Label (ELS) technology is becoming cheaper and more powerful, allowing bricks and mortar retailers to update in-store prices in real time. Beacons – low-power Bluetooth transmitters that interact with shoppers’ smartphones – also allow retailers to create real-time special offers on the shop floor.
Dynamic pricing is a way for businesses to extract the greatest possible value from each customer interaction, but it can also be used to offer individualised discounts. For example Safeway, the Australian grocery chain, will send specific offers to selected customers based on their previous purchases, such as offering eggs at lower prices to someone who often buys high-protein items.
While dynamic pricing is here to stay, it isn’t necessarily right for everyone, everywhere. Whether it is depends on the retailer’s brand values, the target market, shopper engagement, product category, and shoppers’ reactions to price changes. It should also be remembered that consumers do not make purchases based on price alone. They place significant value on the overall buying experience the retailer provides, such as customer service, shipping speed, return policies, and many other factors. Comparison sites allow consumers to better assess their options, and it leaves control in their hands.
What does this mean for brands?
Dynamic pricing enables brands to customise prices for consumers, ensuring brands get the most out of each customer interaction. It has the potential to widen profit margins considerably for those retailers that can implement it effectively.
Brands must ensure that their pricing reinforces their desired brand-value proposition with their target shoppers. If a brand is not a price leader, constantly changing prices can detract from their brand and erode their relationship with shoppers. Use price comparison and monitoring tools to understand competitors’ pricing strategies. Brands should identify which product categories and audience segments are price sensitive, how often prices change for top sellers and sought-after items, and which discounts have been successful in the past.
Brands should also consider integrating price-elasticity models within their attribution approach in order to understand the relationship between price and an individual digital journey. Optimise pricing tactics across the shopping basket. Not all items need to be as dynamic as others. Undertake price testing where products and services have a price point above and below the average. Testing conversion by customer profile and price point will generate data that can be used in a dynamic pricing engine.
As Consumption Triples to $4 Trillion Over Next Decade, Wealthy Householders Will Represent Biggest Share of Spending; Urbanization and More Nuclear and Digital Households Will Also Shape New Spending Patterns
Consumption in India is set to triple to $4 trillion by 2025 as rising affluence drives changes in consumer behaviors and spending patterns that have big implications for companies, according to a report released today by The Boston Consulting Group’s (BCG) Center for Customer Insight (CCI), The New Indian: The Many Facets of a Changing Consumer. Nominal year-over-year expenditure growth of 12% is more than double the anticipated global rate of 5% and will make India the third-largest consumer market by 2025.
The shape of this growth will be influenced by the following factors:
· The elite and affluent income segments will constitute 40% of all spending by 2025; for the first time, the wealthy will represent the largest consumption segment
· Emerging cities (those with populations of less than 1 million) will be the fastest growing and will constitute one-third of total consumer spending by 2025
· Three-fourths of all households will be nuclear families
· Digital channels will influence 30% to 35% of all retail sales by 2025 and 8% to 10% of retail spending will be online
“India’s consumer market is poised for fundamental change,” said Nimisha Jain, a BCG partner and report coauthor. “As the consumer market continues to grow and evolve, companies will need to shed conventional wisdom, try multiple business models simultaneously, and be prepared for rapid change internally to adapt to changing consumer needs and behaviors.”
Among the factors that will shape consumption is India’s unique pattern of urbanization, in which emerging cities are the fastest growing. About 40% of India’s population will be living in urban areas by 2025, and city dwellers will account for more than 60% of consumption. Expenditures in these cities are already rising by nearly 14% a year, while consumer spending in India’s biggest cities is increasing at about 12% a year. Consumers in these cities behave differently from big-city consumers. They have a strong value-for-money orientation, significant local-culture affinity, and a more conservative financial outlook.
Another important trend is shifting family structures. The extended Indian joint family has given way to nuclear households, (a couple or a single person with or without children). The proportion of nuclear households, which has been on the rise during the past two decades, has reached 70% and is projected to increase to 74% by 2025. This ongoing shift is significant to marketers because nuclear families spend 20% to 30% more per capita than joint families.
“A set of emerging social trends could reshape consumption patterns significantly,” said Abheek Singhi, a BCG senior partner and report coauthor. “These include more—and better educated—women taking their rightful place in society, greater pride in being Indian, and increasing time compression, each of which will drive exponential growth in various categories differently.”
BCG CCI’s most recent consumer survey in India included 10,000 consumers in 30 locations nationwide and studied consumption in more than 50 categories. The research found that the classic S-curve growth pattern does not always hold true and that different categories are exhibiting very different growth trajectories. It also shows a steady shift in consumers’ aspirations and spending behaviors in certain categories. For example, immediate gratification is becoming more important than asset creation. The biggest desires of aspirer households used to be to own a house and a car; today, many more of these consumers want to take international vacations. Similarly, affluent households are becoming comfort seekers, and they are willing to pay for it.
In addition, the internet is an increasingly pervasive factor in India’s commerce, and its influence will only expand. Online spending is taking off: in the past three years, the number of online buyers has increased sevenfold to 80 million to 90 million. Digital’s influence on broader consumer spending is significant and growing rapidly. Digitally influenced spending is currently about $45 billion to $50 billion a year, and that figure is projected to increase more than tenfold to $500 billion to $550 billion—and to account for 30% to 35% of all retail sales—by 2025. As a result, omnichannel interaction is more and more important, but its significance varies by category. Consumers’ purchase pathways also are increasingly complicated.
“Already, a rising number of consumers in all segments are using the internet as their first port of call in framing and driving their purchase decisions,” said Kanika Sanghi, a BCG principal and report coauthor. “Our research found that about 70% of those who have access to the internet go online to make informed purchase decisions. As consumers get more comfortable with digital capabilities, their usage patterns exhibit growth that belies age and other demographic variables.”