MediAvataar's News Desk
Along with popular gadgets, home automation products and smart appliances may have their moment this festive season
The festive season has commenced in India and now everyone is eagerly awaiting the festival of lights. Although brands are betting big on Diwali to light up sales, are consumers ready to shop again?
YouGov’s Diwali Spending Index 2020, an indicator of the spending intent among Indian consumers, reveals a below average spending propensity (80.96%) among urban Indians this festive season.
The Index is calculated as a weighted impact of 10 factors (like increase in gross household income, increase/decrease in household expenses, intent to invest or splurge and general optimism towards economy) on their intent to spend more/less this Diwali season versus last.
Among the 10 factors, while an increase in gross household income has the strongest impact on consumers’ intention to spend more this year, only 15% of the respondents indicated an increase in their gross household incomes. On the other hand, close to 50% of the respondents agreed that they are more careful with their finances today than they used to be in the past. Highlighting a strong “negative” relationship with spending intent, it is this factor that is likely pulling down the overall sentiment to spend more this Diwali than last year.
The final Index, i.e. 80.96, being less than 100 indicates a below average intent to spend more this Diwali versus last year.
In addition to the Index score, YouGov’s survey shows 54% respondents said they were likely to spend lesser than last year during Diwali, as compared to 23% who said this in 2019. One in five (20%) were planning to spend the same amount as last year while only 17% said they would splurge more this time.
Even though the overall buying sentiment is lower as compared to last year, people are likely to invest in certain categories- with ‘Gadgets’ topping the list (22%), closely followed by ‘Clothes’ (22%). Appliances (17%), fashion accessories (15%) and jewellery (12%) are also high on shopper’s priority list.
When it comes to the mode of shopping, online shopping is likely to see a surge with more than half (54%) saying they prefer to shop online this Diwali. It appears most gadget buyers are likely to buy products online than offline (65% vs 18%). Online also appears to be the preferred medium of shopping for other categories like Fashion accessories (49%), beauty & make-up (48%), clothes (46%) & appliances (44%). However, for high-ticket items like Jewellery (61% offline vs 16% online) and Furniture (55% offline vs 19% online) people prefer in store purchases over contactless online shopping.
When asked what products within gadgets & electronics are they likely to purchase in the next three months, Smartphones emerged as the top choice for nearly half the respondents (48%). This was followed by Laptops (33%), Wireless earphones (28%), Smart TVs (25%) and microwave/ oven (20%).
In addition to upgrading their devices, people are looking to buy smartphones for the purpose of online education. The same is true regarding the demand for laptops/ desktops, where people are seeking to buy these products for work as well as for educational use.
Apart from the usually popular gadgets like smartphones and laptops, this year people also seem to be interested in home automation products such as microwaves, food processors, vacuum cleaners and dishwashers.
Traditionally, India has never been a big market for automation products but the prolonged impact of the pandemic could be driving the demand for these products. As millions of Indians increasingly balance work from home, along with managing household chores, more than a third have started thinking about purchasing a food processor (35%) or a dishwasher (34%) in the next three months. Another third are a step ahead in the purchase cycle, and have started looking out for brands to purchase vacuum cleaners and smart home devices (34% each).
Although consumers are being cautious with their spending, money is not the sole criterion for purchase. Most consumers are looking at mid-tier or premium budget segment for most of the listed categories of appliances and electronics. Value- segment is a consideration for few items such as dishwasher, Smart TV and wireless earphones.
Talking about the festive shopping fervor this Diwali, Deepa Bhatia, General Manager, YouGov India, said, “After an economic slowdown caused due to the pandemic, businesses are looking forward to the festive season for revival. Even though enthusiasm among consumers is low this year, certain categories are likely to witness a demand from consumers. There also seems to be an inclination towards products that ensure autonomy and fill the gap in the absence of domestic help. It is therefore important to understand the requirements of these buyers and extend offers that lift the buying sentiment.”
This survey has been conducted on a sample of 2,500 respondents on the YouGov India’s online panel between 21st Sep to 25th Sep 2020. The sample primarily constitutes consumers from NCCS A and B; and matches the population numbers of urban India in terms of basic demographics like age, gender, regions and city tiers.
The Index has been derived using Ordinal Logistic Regression and Johnson’s Relative Weight modelling to understand the relationship between each of the factors and overall intention to spend more this Diwali amongst consumers.
For the calculation of the final Index, two sets of weighted averages were calculated basis respondent data – 1) assuming an equal weightage for all factors (which has been used as the base); 2) with actual weightages for each of the factor derived from the regression and JRW analysis. The final Index, i.e. 80.96, being less than 100 indicates a below average intent to spend more this Diwali versus last year.
The final Index = Actual weighted spending intent / Hypothetical spending intent assuming equal weightage to all 10 predictors
In their recently-released Q3 2020 earnings report, Netflix added 2.2M global net subscribers. This figure is just shy of their estimated gain for the quarter of 2.5M. Additionally, it fell short of analyst expectations that forecast the service’s growth in subscriber numbers would exceed Netflix’s own guidance. Accordingly, the company’s share price was down about 5% after market close. This is not the first time Netflix has faced challenges maintaining subscriber growth.
However, while the main metric of paid net adds may have fallen short, in many ways this has been a solid quarter for Netflix. The effects of the ongoing extraordinary operating conditions caused by the global pandemic are likely still benefitting the streamer.
One such effect is shown below, where we can see that in Q3 more titles are trending positive in demand across all regions. About half of all Netflix original titles saw QoQ increases in demand. The USCAN region in particular saw its share of titles trending upward increase by nearly 15%.
In another positive indicator, the decay rate of content on Netflix is improving across regions. This shows that demand for content available on Netflix is holding up better over time. This is good news for those who had concerns about audiences burning through content faster during lockdowns and bodes well for subscriber retention.
We know that tentpole originals are key drivers of subscriptions. Netflix itself, likely aware that the absence of these is keenly felt, reassured investors that tentpoles were coming, calling out specifically in the shareholder letter that production has restarted on Stranger Things S4 and The Witcher S2.
The chart below shows how demand for tentpole originals is a leading indicator of subscriber net adds. In the chart, demand has been forward shifted by one quarter to better show its predictive relationship with subscribers. Aside from the difference in Q1 2020, driven by the pandemic and catching everyone including Netflix by surprise, a previous quarter’s change in demand is a good indicator of subscriber growth. Demand for tentpole originals in one quarter drives subscriber growth in the next.
We’ve included Netflix’s Q1 2020 guidance in the chart above as an estimate of where net adds would have been in the absence of pandemic effects. As can be seen, Q4 2019’s sharp decline in original tentpole demand would have been in line with Netflix’s guidance which had forecast global subscriber growth slowing in the first quarter of 2020. Following the anomaly that was the first quarter this year, it appears that the historical relationship between a previous quarter’s tentpole demand and current subscriber growth has resumed. The Q2 2020 reduction in demand for Netflix tentpole originals presaged Q3’s slowdown in subscriber numbers.
Beyond tentpoles being a driver for subscriber acquisition, two genres in particular are key in supporting subscriber acquisition - children's and drama. We’ve previously shown the power of these genres for adding subscribers.
In dramas, a critical genre to lure subscribers and one in which Netflix has had historical strength, Netflix originals are losing share slightly in APAC and LATAM so far this year, down 2.7% and 1.8% respectively. A powerful force to reverse this trend would be another season of one of their tentpole dramas such as Stranger Things.
The above demand share analysis also reflects the competitive headwinds Netflix faces as new streamers enter the market. Peacock and HBO Max’s launches earned a mention in this quarter’s shareholder letter. Disney’s reorganization to focus on streaming was also specifically addressed. Netflix is certainly aware that the streaming wars are far from finished.
Yaccarino Adds Data Strategy Unit, Local & Regional Sports Network Sales, and Cross-Company Strategic Initiatives to Her Purview, in Addition to Global and National Sales
NBCUniversal today announced that Linda Yaccarino has been elevated to Chairman, Global Advertising and Partnerships, NBCUniversal. She will continue to report directly to Jeff Shell, CEO, NBCUniversal.
In this expanded role, Yaccarino will continue to oversee all National Advertising Sales, Ad Sales Marketing, and Global Partnerships, and will now include Local Advertising Sales and Strategic Initiatives teams in that offering, as well as spearhead a new cross-functional Data Strategy effort across the company.
With this move, NBCUniversal's continued focus on serving all audiences on all screens takes another step forward, creating a single, scaled advertising offering for clients of all sizes, no matter where they operate -- locally, nationally, or globally.
Earlier this year, NBCUniversal unified its linear and digital assets as One Platform and introduced ad-supported streaming with Peacock. This new structure announced today is an extension of the One Platform strategy. It allows the company to strengthen its already robust local ad sales operation by tying it more closely to the company’s global sales efforts and provides additional resources to build growing areas like data and information strategy.
"Linda has done a fantastic job moving the advertising business forward, not just for NBCUniversal, but the industry at large," said Jeff Shell, CEO, NBCUniversal. “I'm excited for her to continue architecting the future of the ad-supported ecosystem and uniting all assets of this company to make us the best possible partner for our customers around the world."
Since joining NBCUniversal in 2011, Yaccarino has led the growth of the company's advertising sales efforts both nationally and globally to a $10+ billion dollar business annually, while developing new opportunities with expanded creative and technological resources to better serve NBCUniversal's partners. Now, with the addition of Local Sales, NBCUniversal will offer a streamlined, scaled ad solution for small businesses to global enterprises via One Platform. Frank Comerford, Chief Revenue Officer for Local Sales, will continue to oversee all commercial efforts for NBCUniversal’s local TV stations, multicast networks and regional sports networks. He will report to Yaccarino and continue to partner closely with Valari Staab, President of NBCUniversal Owned Television Stations.
Yaccarino's role will also include the oversight of a new initiative and another division. She will lead an effort to create a unified, privacy safe identity vision at NBCUniversal as head of the company's new Data Strategy unit. This team, under a soon-to-be-named Chief Data Officer, will map out a strategic plan for information development across the organization, driving revenue generation and building deeper pathways into commerce. Strategic Initiatives, led by Senior Vice President Kathy Kelly-Brown, will also join Yaccarino's team, uniting Comcast Cable and NBCUniversal's Symphony efforts under the broader Advertising and Partnerships mantle.
Collaboration with one of the largest Chinese film production and distribution companies
Will kick off with original and exclusive dubbed versions of films Detective Chinatown 2 and The King’s Avatar: For the Glory
Tubi,a division of FOX Entertainment, announced it has entered a content deal with Chinese film and television studio Wanda Pictures. The partnership will launch with original and exclusive English-dubbed versions of Detective Chinatown 2, the sixth highest grossing movie of all time in China. The deal also includes an anime film set in the esports world, The King’s Avatar: For the Glory. Both films will soon be available on Tubi in the U.S. and Canada, with The King’s Avatar: For The Glory also available in Spanish in the U.S. and Mexico.
“We are thrilled to be aligning with Wanda Pictures as we look to expand our offering with storytelling from international territories,” said Adam Lewinson, Tubi’s Chief Content Officer. “Tubi viewers will soon have access to premium Chinese filmmaking such as Detective Chinatown 2, completely free.”
Detective Chinatown 2, written and directed by Chen Sicheng and starring Wang Baoqiang, Liu Haoran, Xiao Yang and Natasha Liu Bordizzo has grossed over $540 million worldwide. The sequel to the 2015 hit – which is currently streaming for free on Tubi – is the first film created and managed by Chinese companies to be filmed domestically in collaboration with local unions. DC 2 is a winner of the 34th Hundred Flowers Award.
The King’s Avatar: For The Glory, written by Youcong Li and directed by Zhiwei Deng and Juansheng Shi, is an animated feature about a skilled group of young gamers who form an electronic sports team and compete for the national championship. The film stars Ketsu, Bian Jiang, Xia Lei, and Xi Zi.
With over 33 million Monthly Active Users (MAU) and Total View Time (TVT) surpassing 200 million hours of content streamed every month since June, Tubi has more than 23,000 movies and television shows from over 250 content partners, including nearly every major Hollywood studio. The service gives fans of films and television programs an easy way to discover new content that is available completely free.
‘Jo dushmano se na daare woh dabangg, apno ke pyaar pe jo mare woh dabangg aur jo mask pehen kar bahar nikle woh dabangg’. Spreading the awareness around the need of the hour social message along with a power packed punch of dhamkedar entertainment is Zee Cinema’s World Television Premiere of the Salman Khan starrer ‘Dabangg 3’this Sunday, 25th October at 12 noon. Just like how the nation’s beloved ‘Chulbul Pandey’ a.k.a Robinhood Pandey wins over the evil with his Dabanggai ishtyle, Zee Cinema urges the audience to be ‘Dabangg’ by doing a simple task i.e wear a mask when you step out through its campaign #DabanggBanoMaskPehno.
The third edition of the dhamakedar franchise that revolves around the most loved cop Chulbul Pandey a.k.a Robin Hood Pandey is here to, once again, whisk you away with his heroic punches and quirky world. But this time his story starts from where it all began! With Dabangg 3, Director Prabhu Deva marks his second association with mega star Salman Khan and yet again the movie successfully took the box office by storm. Touted as the masala family entertainer, the movie will witness Salman Khan, Sonakshi Sinha & Arbaaz Khan reprise their roles. And, adding a refreshing vibe to the franchise will be the debutante Saiee Manjrekar and Kichcha Sudeep. Be it the high voltage action, power packed dialogues, heartfelt emotions, rib-tickling comedy or masaledar jukebox the film has it all, ensuring a blockbuster movie viewing experience for you.
As a prelude to the premiere, Zee Cinema undertook a series of high decibel marketing initiatives to promote the WTP of Dabangg 3 through a social awareness campaign #DabanggBanoMaskPheno by tapping into Chulbul Pandey’s equity. While the lockdown has been lifted and people are getting back to their lives, they need to remember that the virus is still there and each one of us need to take the necessary precautions like wearing a mask. The channel kickstarted this with an OOH campaign for 7 days in Mumbai, Delhi & Ahmedabad to spread this message. Along with this, the channel also placed larger than life cutouts of Chulbul Pandey wearing a mask and distributed sanitizers and masks to people who weren’t wearing masks to create awareness in 6 cities (Lucknow, Varanasi, Meerut, Agra, Kanpur & Allahabad) in UP
But, that’s not all, the marketing blitzkrieg spills over social media as well with Zee Cinema putting forth an engaging activity asking loyalists to share their ‘mask wali selfie’ tagging Zee Cinema to spread the awareness further. In addition to this, Zee Cinema created a special video that celebrates and salutes the Dabangg police officers of our country who are 24x7 on their feet to ensure our safety. This video was released on ‘Police commemoration day’ and is being widely promoted on the channel’s social media platforms
Speaking about being a part of the Dabangg franchise, Sonakshi Sinha said, “Dabangg is home to me, I started my career in the industry with this film and am glad to have been an integral part of this franchise as it grew. It’s an honor for me and I am grateful for everybody especially Salman Khan to have shown that faith in me to play the role of Rajjo and giving me my first break. Dabangg is one of the franchises that has got tremendous success throughout and it feels great to be a part of that journey and build it along the way.”
Sharing her experience of working alongside Salman Khan, Saiee Manjrekar said, “It was like a dream come true, to be honest. With a lot of thrill and excitement came tremendous responsibility to be in the same frame as Salman sir and Sonakshi. During my screen test, I knew that the first take is going to decide my fate to star along with my childhood favorite artist. Even while shooting, it all felt surreal and each day I was on my toes to do justice to the character and the faith Prabhudeva sir and Salman sir had put on me. I got to learn so much from each one of them and I am glad to have landed this opportunity for making my debut with Dabangg 3. Nonetheless, it was one of the greatest experiences of my life.”
Is Dussehra, hogi burai ki zabardaast dhulai aur hoga dhamakedar entertainment kyun ki aa rahe hain Chulbul Pandey ji. So, get ready to give him a blockbuster swagat this Sunday.
Watch the World Television Premiere of Dabangg 3 only on Zee Cinema this 25th October at 12 noon!