MxMIndia

Author: mxm_india

  • From a growth standpoint, this Diwali is looking very, very promising. The fact that there is tremendous traction from the consumer’s end, monetization becomes that much easier.

    Lakshmi Narasimhan: The icing on the cake

    Digital is one of those categories in the whole of media spectrum which has seen steady growth for many years now. One can say with all the confidence that it is the most accountable medium; one which saw good traction even at a phase when many companies in India were witnessing the brunt of the slowdown in 2009. Post that, I would say there was no looking behind and the digital industry grew in double-digit numbers.

    This festive season is like the icing on the cake. We’ve seen in the recent past, many new ventures in the Internet space, WAP sites being launched, many apps being introduced by companies; increasing numbers of active Internet users, penetration of smart-phones, tablets etc all tell a fabulous growth story. It tells you that information is just a click away, doesn’t matter where you are. The result of all this is the changing consumption of digital media from a consumer standpoint.  As far as digital media is concerned, it is just the right opportunity to engage with consumers.

    From a growth standpoint, this Diwali is looking very, very promising. The fact that there is tremendous traction from the consumer’s end, monetization becomes that much easier.

    So yes, Diwali has been good for us (Web 18) and mostly there are positive signs for the industry as well. What we must look to do from here is to carry forward the momentum to next year.

     

    Lakshmi Narasimhan is CEO, Web 18.

  • The next five years are going to be a golden period for the broadcast industry.

    Markand Adhikari: It’s growth and growth

    Diwali is a special time for broadcast channels for they can tweak their programming towards catering to the festive moods of consumers, especially the news and entertainment channels. The festive season also brings in additional revenues in form of ad sales or sponsorships on key events and properties.  Media owners generally do get some benefit out of the festive season, where consumers are in the buying mode and when maximum sales happen during the year. We see categories like jewellery and consumer brands do a lot of advertising on TV.

     

    This season, we’ve seen quite a lot of traction from advertisers. A very good year – one of the best I would say for the broadcast industry, if we consider the past four to five years.  We’ve come up with some really good programming for Mastii. And I’m sure a lot of other channels are doing their bit around Diwali.

    Going forward, I think the broadcast industry will see growth and more. Next Diwali, as I see it, will be even better as far as business growth is concerned. Channel owners will up their ad rates. Subscription revenue will increase and once that begins to happen, on-air spots will be sold at a premium. That’s a big challenge, but I’m sure the industry is moving towards that, slowly but surely.

    As far as competition is concerned, with increasing media fragmentation, I think that companies which are able to hold their ground for next three years, will reap maximum benefits, as the way I see it, next five years are going to be a golden period for the broadcast industry.

     

    Markand Adhikari is Managing Director, Sri Adhikari Brothers

  • The top giver this year has to be Team Anna. Every day, all the members, former and current, work so hard to gift the media something substantial so that juicy stories and screaming debates can be organised.

    Ranjona Banerji: Giving with a twist

    Maybe Diwali is shining bright this year and maybe, well, there are a few dull spots here and there. Ads in newspapers over the past month certainly show that real estate and white goods are back in demand and jewellery it seems never goes out of fashion.

    But as journalists, you don’t have to count Diwali in terms of what you get (so how many media houses actually bother to give their employees anything for Diwali any more?) in material terms but what you get as, well, material.

    The top giver this year has to be Team Anna. Every day, all the members, former and current, work so hard to gift the media something substantial so that juicy stories and screaming debates can be organised. Tax evasions, slipper-chucking, chamber-bashing, endless fasts – which forced television to find every synonym for abstinence from food it could come up with across several Indian languages – dramatic exits, allegations, self-righteous sanctimony… sometimes you’re lucky as a journalist to get such a cornucopia of riches maybe once a year. Team Anna has been giving generously since April.

    The next most generous has to be the film industry (and I don’t mean press conference gifts or the air kisses some film star blows a young, impressionable film reporter who now thinks they’re BFF). Every other week a movie releases with such an enormous publicity blast that you need at least six months to recover. It is another matter that the film bombs before anyone sees it and is as same old same old as the last one. The publicity blitz is far more important than the film itself and generates so many stories. So what if most of them are fake? This season, it has been Shahrukh Khan who has been most kind. Now, anyone going to see the movie, errr, what’s it called?

    In most years, cricket would top the list but what started out as a great cricket year what with the World Cup and the IPL and then the England tour oops… um, what happened after that? My mind has gone a bit blank. There should have been stories galore but then I don’t know, whatever, cricket, yeah.

    The Sensex is usually good for some drama but this year, well, it’s behaved very badly, in a damp squib kind of way. Instead, rising higher and higher has been the inflation rate, so you know, you lose some and you lose some. Not quite a breezy Diwali story.

    Big thanks could go to our politicians who are usually ready with some fun stuff. Of course they never fail so there’s nothing new or unexpected here. We’re used to it. Sometimes, it’s like Diwali gifts every day.

    Now that Diwali is done and dusted, let’s see what kind of parties we get thrown for New Year.

    Have a good one.

  • Marketing is neither for the coldhearted nor is it for the overconfident

    Sudeep Narayan: A world of many hats

    Cold war; Combative; guerilla; carpet bombing; sniper – various battlefield strategies and tactics flare-up inside a marketers mind.

    Marketing is neither for the coldhearted nor is it for the overconfident.

    Will this design be accepted? Is this the latest in technology? Will our customers accept the price? What would be the customers expectation 5 years from now? Should we as a corporation look to ‘shift the paradigm’? For all these answers turn to the Marketing Head’s page. They will know. Image the expectation within the organisation and the expectation outside. Will the client see value in investing in this creative rendition? Swap the headline with thesub-head and increase the logo. The rest is approved.

    There seems to be more questions in marketing than answers. This gives birth to the ‘idea of exploration’ birth to the Americas. One challenging fact however bears more significance to marketing – the everchanging landscape and the need for ‘Envisaging’. They who explore the unknown are ready with an app within the first week of the iPad launch.

    A marketing professional needs to know everything. Period. Compelled to wear different hats

    Professor Product hat – if you don’t have knowledge about your product, how would you know its different from others in the market.

    Design Guru Stetson – every design has its virtues. Which one appeals to the brand values and the customers psychie. What is the ‘Natural-fit’. Some brands have suffered defeat in the marketplace for being congruent to the core values.

    Doctor Economist Beret – brand valuation; supplychain; demand forecasting and the understanding of all the economies of scale

    Shrink cap – another optional career for marketers is counselling. The daily challenges makes marketers understand psychology.

    Moolah topi – even the finance experts of the company expect marketing execs to balance the sheet.

     

    Nuff said. Marketing is a great place to be!

     

    Sudeep Narayan is Marketing and PR Director, Volvo.

  • Prathap Suthan: It’s great to be in the creative business

    By Prathap Suthan

    I can be forever young. I can keep on vicariously living my teenage life, rewinding, recasting, redubbing, and capturing all that in different stories, in different media.

    I can be anyone. I am hired to be schizophrenic.

    I can be Captain Cook on a voyage across the Pacific. I can be an acid rocker tripping on psychedelic life. I can be Sobers playing T20 in Hawaii.

    I can be passionate, energetic, moody, trendy, whacked out, sober, argumentative, flaky, sober, drunk, devious, intelligent, dull, unshaven, rude, and silent on occasions.

    I can be a prism of complications, and a spectrum of vibrancy.

    I can be in the middle of the Sahara, watching sharks ski down snow slopes, chasing long necked hippos, snacking on broccoli burgers and drinking pumpkin champagne.

    I can be inventive, innovative or boringly conservative, with a Gothic skew.

    I can create anything in my head, and it doesn’t have to respect gravity. Or consider the consequences of anything that Einstein theorized.

    I can buck rules. I can duck rules. I can rewrite history. I can draw new geography.

    I can borrow Spain. I can import Russia. I can buy Neptune. I can sell Pluto.

    I can officially sit at home all day and brood over karma.

    I can build space rockets. I can trash missiles. I can chomp nuclear bombs. I can burp oxygen. I can eat anything. I can drink everything.

    I can do whatever inside my mind. I can be holy, or unholy. I can be a father, or mother, or son, or daughter, or cousin, or pet dog.

    I can be a sofa, a couch, or a dining table with three legs.

    I can get inside a goat’s stomach. I can talk to a pebble. I can discuss world economics with an earthworm. I can want cyanide.

    I can fall in love. I can fall out of love. I can have four mouths, and 11 eyes. I can be articulate. I can be respectful. I can be middle class at 2.30 pm.

    I can declare wars. I can start revolutions. I can explore everywhere. I can go ahead in time. I can go back into the past.

    I can be sensible. I can be illogical. I can be commonplace. I can be exotic. I can find relevance. I can find meaning. I can be original. I can be fake.

    I can be anywhere. I can travel on the back of a bumblebee. I can breathe nitrogen. I can barbecue a not so friendly barracuda underwater.

    I can fly with an eagle, and pluck its feathers.

    I can be Hitler. I can be your neighbour. I can be Pele. I can be Hannibal. I can be Cupid. I can be a cow with a hangover.

    In fact, I can be what I want to be, and pretty much do what I want to do. I am only limited by my imagination, civility, and budgets.

    Thank goodness for our business. And thank goodness I can have more fun tomorrow.

     

    Prathap Suthan is Chief Creative Officer at iYogi.

  • MxM Diwali break fm Oct 27-30. C u Mon, Oct 31

    It’s Diwali, and our hearty ‘shubhkaamnayein’ to all our readers.

    Our offices will be closed Thursday through Saturday for Diwali. That’s Oct 27-30. On Sunday, Oct 30, our editorial production team will work to produce the next day’s edition (Oct 31).

    However, let us assure you that in case anything there is a major development, we’ll be around. Like we were on Dassera.

    Have a super weekend and see you Monday, October 31.

  • To resort to a cliche, there's never a dull moment and that suits most journalists very well.

    Sukumar Ranganathan: Journos and media exec in a unique position

    Try as I may, I find myself unable to summon the enthusiasm inherent in the headline , so I am going to refine the topic a bit.

    It is an exciting time to be in media. A combination of circumstances — increased political and business activity, and a reduction in information asymmetry thanks to regulations such as the Right to Information Act and technology — has meant a significant increase in news flow. To resort to a cliche, there’s never a dull moment and that suits most journalists very well.
    Yet, it’s a challenging time as well.

    To stay relevant, newsrooms have to be proficient in multiple media and editors should understand print, video, the Internet, and social media. The business case for some of these is still being written, but that doesn’t mean they can be ignored. The good news for print journalists like me trying to cope with a whole new world is that print will continue to exist, even thrive in India.

    There’s also another challenge newsrooms face, one that many are just waking up to. The reduction in information asymmetry that gives them access to news they once wouldn’t have had access to, also gives readers and viewers access to information about how journalists work. Many newsrooms in India still work without a journalistic code and, over time, this will put off both readers (or viewers) and advertisers.

    Given all these, work is complex, interesting, hard, stressful, and sometimes fun.
    But great? I don’t really know.

    It is, at once, both exciting and frightening, to be in the middle of great change of the sort that the Indian media landscape is going through.

    I think I can safely say that journalists and media executives find themselves in a unique position.

     

    Sukumar Ranganathan is the Editor of Mint.

  • All the Diwali 2011 Specials

    Diwali specials by: Markand Adhikari, Ranjona Banerji, Karthi Marshan, Ajaz Memon, Lakshmi Narasimhan, Sudeep Narayan, Prashant Panday, Sukumar Ranganathan, Prathap Suthan, Anil Thakraney

    All the Diwali 2011 Specials

     

    It’s great to be in the media…

     

    Markand Adhikari: It’s growth and growth

    http://www.mxmindia.com/?p=4550

     

     

    Ranjona Banerji: Giving with a twist

    http://www.mxmindia.com/?p=4555

     

     

    Karthi Marshan: An age of delight
    http://www.mxmindia.com/?p=4544

     

     

    Ajaz Memon: It’s a time for happy choosing
    http://www.mxmindia.com/?p=4537

     

     

    Lakshmi Narasimhan: The icing on the cake
    http://www.mxmindia.com/?p=4545

     

     

    Sudeep Narayan: A world of many hats
    http://www.mxmindia.com/?p=4560

     

     

    Prashant Panday: ‘Coz radio is sexy!
    http://www.mxmindia.com/?p=4557

     

     

    Sukumar Ranganathan: Journos and media exec in a unique position
    http://www.mxmindia.com/?p=4563

     

     

    Prathap Suthan: It’s great to be in the creative business
    http://www.mxmindia.com/?p=4551

     

     

    Anil Thakraney: It’s changed my life. No, really
    http://www.mxmindia.com/?p=4540

     

     

    Package coordinated by Rishi Vora with Tuhina Anand, Akash Raha and Shubhangi Mehta
    Big Story image: Rafiq

  • Retailers like Future Group, Lifestyle, Godrej, MegaMart, Fabindia are offering 0% EMI to attract customers

    Retail giants offer 0% EMI to woo clients

    By Writankar Mukherjee, Atmadip Ray & Pramugdha Mamgain

     

    Retailers are countering the economic slowdown by offering interest-free equated monthly instalment (EMI) schemes, which they say are not only helping them pull customers into stores but also encouraging shoppers to buy higher value products.

     

    Such EMI-based sales promotions have staged a big comeback at a time near double-digit inflation has put a heavy strain on household budgets, making people defer non-urgent and big-ticket purchases even on credit because of hardening interest rates.

     

    But transactions carrying zero percent financing have grown more than 50% over the past year, say retailers and bankers.

     

    From apparel sellers such as Arvind Brand’s MegaMart and Fabindia to multi-product retailers such as Future Group, Lifestyle and Godrej, firms reckon that zero-interest EMI options are the most effective discounts they can offer.

     

    While retailers end up bearing the interest for the duration of the credit extended, they see it as an acceptable cost of keeping the sales register ticking during the downturn.

     

    “EMI schemes are removing inhibitions and inducing consumers to splurge on big-ticket items,” says Mr Himanshu Chakrawarti, chief executive of Essar Group’s Mobile Store, the country’s largest mobile phone retailer. He says consumers going for six-month EMIs are buying handsets priced twice than they had initially planned and those going for nine-month to 12-month schemes are tripling their size of transaction.

     

    Almost a third of the high-end mobile phones, such as the iPhone and the latest models of Blackberry and Android-based phones, sold at the Mobile Store are paid for through instalments. The company, which rolled out EMI schemes at its 1,200 stores across the country over the past couple of months, recently became India’s largest seller of BlackBerry smartphones.

     

    Instant approval of loans and minimal documentation help speed up EMI-based transactions, says Mr Parag Rao, senior executive VP, HDFC Bank. He says the bank has seen a more than 100% spurt in this loan category over the past year with an average transaction of 30,000. “Since the amounts are much smaller compared to home or car loan, the EMIs don’t pinch much,” he says.

     

    Consumer durables and jewellery sellers were the first to offer such sales schemes, but now retailers across product categories are betting on interest-free instalment schemes. For consumers, this spells the return of consumer financing schemes, which had dried up during the global meltdown in 2008 and 2009 when banks turned away from most unsecured lending schemes.

     

    But the return of such schemes is becoming a major motivator at a time when studies are showing consumers are searching for the best deals and discounts like never before. A latest study by NM Incite, a Nielsen-McKinsey Company, shows that conversations about deals and discounts account for 50% of all conversations in social media forums this Diwali.

     

    “Deals are becoming the primary motivators to consider purchases. This more than anything will decide which brands will win a greater share of wallet this season,” says Mr Adrian Terron, Head, NM Incite India.

     

    From apparel and mobile phone sellers to furniture and computer stores, retailers across the board are reporting a jump of 10% in sales on average driven by deals like EMI schemes. They say the average bill size has also grown simultaneously by 10% to 15%.

     

    EMI-based sales have doubled for consumer electronics during this festive season, retailers say. In the case of products such as LCD and LED televisions, nearly 15%-17% of all purchases are being made through such schemes, says Mr Devang Mody, business head (sales finance) at Bajaj Finserv Lending.

     

    The lender has tied up with manufacturers such as LG, Samsung, Sony and Panasonic and durable retailers including Croma, Vijay Sales and Reliance. It expects the festive season to generate EMI-based sales worth 750 crore.

     

    For jewellery retailers, hit by the double whammy of inflation and appreciating gold prices, interest-free instalment schemes have become a veritable lifeline.

     

    Furniture retailers, staring at halving of growth to 10%, are finding a much-needed growth driver in zero-interest EMI schemes. “With inflation kicking in and discretionary spending capability of households going down, EMI schemes will become more relevant as these facilitate consumer instant gratification while paying in easy instalments later,” says Lifestyle International managing director Mr Kabir Lumba.

     

    Future Group’s Home Town is similarly offering products on interest-free EMIs, as is Style Spa, which joined the bandwagon a fortnight ago. Fabindia launched an EMI scheme this month on purchases of 50,000 and above, which covers apparel and other products. “We intend to tap the burgeoning professional class through this scheme,” the company spokeswoman said.

     

    Analysts say retailers stand to gain even as they absorb the interest component when they offer zero-percent EMI schemes. “While such schemes may impact their margins, the interest gets accounted as a cost they need to bear to generate sales,” says Mr Devangshu Dutta, CEO of retail consultancy Third Eyesight.

     

    Source:The Economic Times

    Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved

  • When festivity joins hands with creativity, it usually makes for memorable ads. Check out the industry’s picks.

    The Diwali ads that crackle

     

    By Shubhangi Mehta

    Though the Diwali campaigns this season did not create much hype as they were fewer than in the past, going a little back in time we have seen some absolutely delightful campaigns, from Cadbury’s “Iss Diwali aap kise khush kar rahe hain?” and Coca-Cola to Samsung’s Diwali commercial or the latest Tanishq campaign featuring Amitabh Bachchan and Jaya Bachchan.

    Which is the Diwali commercial that has been an all time favourite for the industry? MxM India asked the biggies themselves.

    Mr KV Sridhar aka Pops, NCD, Leo Burnett, said, “My favourite Diwali commercial would be ‘Iss Diwali aap kise khush kar rahe hain?’ by Cadbury, which was out almost a year ago. For me and I’m sure for everybody else, the best way to celebrate Diwali is to catch up with near and dear ones and make them happy. Hence I found the commercial very real.”

    Mr Dheeraj Sinha, Regional Planning Director, Bates, said, “The Diwali campaign that has appealed to me the most is the Fiat Festive season campaign done by Bates. The campaign goes a step beyond the Diwali promotional offers etc and talks about the philosophy of Fiat, therefore I find it more appealing.”

    Mr Rajiv Rao, NCD, Ogilvy & Mather, said, “I know it’s my own agency work but I can’t resist saying that it is Cadbury’s ‘Iss Diwali aap kise khush kar rahe hain?’ There is so much of humanity and it breaks the clichéd concept of just greeting only your family and close friends on Diwali. It is most definitely my favourite Diwali campaign.”

    Mr Bobby Pawar, COO, Mudra, however took a different tack, saying, “No ad campaign has been able to capture a place in my mind; I really cannot think of any Diwali campaign that has appealed to me so much as to be called my all-time favourite campaign.”

    Cadbury’s seems to be the brand and campaign to have captured minds and hearts, and the sweet taste of success is certainly well deserved. But with such a wealth of creativity on tap and such a rich diversity of cultural references available all over India, it is high time a new, iconic ad or campaign came forth.

    We’re waiting.

    [Link] Debrief: In the midst of the drought, the Diwali ads that caught Anil Thakraney’s eye.

  • The mood seems a bit muted this year what with inflation and a general economic uncertainty. It’s not that purchases are not being made but the general consensus on the mood is that people are cautious before spending.

    Tight strings on wallet this Diwali (text & videos)

    By Tuhina Anand

    With inputs from Shruti Pushkarna in New Delhi (text and videos) and Insiyah Rangwala in Mumbai

    Looks like the sparks this Diwali could be less bright as for people who traditionally would see big business during the festive season be it shops selling consumer durables, gadgets and gizmos and of course jewellery are not too optimistic on the sales. The mood seems a bit muted this year what with inflation and a general  economic uncertainty. Its not that purchases are not being made but the general consensus on the mood is that people are cautious before spending.

    For shops selling consumer durables, Diwali has been a money spinner but things seem to have changed in the last 2-3 years. Mohan Singh, Branch Manager, Next Retail Ltd in Delhi in a conversation does share that sales are down as compared to last year. But he is hoping on Dhanteras purchase to make up for this slow start. He said, “Last year there was a huge demand for microwaves, washing machines and TVs but this year except for LCDs, there isn’t much demand for other products in this category. In fact I would term it as black Diwali.

    HR Giria of Girias, which is a multi-city chain of consumer durables showrooms dubs that even if the sale would be encouraging this year it would only be `marginally better’. In the meanwhile Girias is leaving no stone unturned to woo customers with both offers in shop as well as extensive advertising in print to reach to large number of customers.

    While the mood may be sombre but one thing is clear that when its comes to making purchases this Diwali, its LCDs and LED’s that is `hot’ item. Samsung, Sony and LG are the preffered brands and the 32inch seems to the most popular buy. In fact in some shops like Vijay Sales, the floor manager informs us that these panels comprise almost 50 percent of their sales.

    Small appliances like hand blenders, toasters and rice cookers are popular picks for gifting purposes. Also the shift is now on gadgets especially tablets, MP3 and smart phones and digital cameras when it comes to gifting. One does not need to be disappointed as there are also shops who have seen increase on sales this year especially in terms of gadgets like Manpreet Singh, Manager, Hari Om Electronics informs that as compared to last year gadget purchases have gone up, and says it has increased by 30 per cent.

    Most of the shops have easy availability of credits to help shoppers purchase more. Some of these have also tied up with banks like ICICI, HDFC, Amex, Citibank to encourages customers to spend more.  The average spends could be anywhere between Rs 25000-35000. Also most retailers have scratch card or other such offers mostly given by the company itself to give something more to the consumers.

    And if one is discussing Diwali purchase one has to look at gold and silver purchases this Diwali as jewellery or coins is a major part of Diwali shopping. With spiralling gold and silver rates, these purchases have become far more dearer. In fact, a jeweller in Mumbai rues the fact that this year the sales have gone up only by 150 percent whereas in the past it used to increase to 450 percent. In fact, 10 per cent of his income would come from Diwali.

    Mohit Gupta, Vice President, PP Jewellers Pvt Ltd, said, “Sales have definitely gone down this year because of the soaring gold rates. Gold and silver coins are the most popular purchases, they are seen as investment. For gifting, because of high gold rates, this year people are going in for more light weight jewelery like ear rings and small pendants. Every year we see a growth of at least 20 to 30 percent but this year there isn’t any such indication so far. We are expecting a lot of purchases on Dhanteras.”

    Even though in the last few days the price of gold and silver have gone down but the increase in prices throughout this year will be a major deterrent for buyers. In fact, World Gold Council is advertising heavily on the fact that how gold is a good investment option. So the general mood is that the market is stagnant this year or the sales will be less than last year. Even in purchases people are going for small items. As a local jeweller in Bangalore informs that last year during diwali they had sold around 350-400 silver coins and will be stocking the same this year. Currently, a 5gm silver coin will cost around Rs 260 and 1 gm of Gold is approximately Rs 2600 (prices will fluctuate according to daily rates).

    Harish Goel, Owner, Goel Jewellers sums up the mood, “Sales are very low this festive season thanks to the gold prices. There are hardly any purchases from the middle classes so to say, even from higher classes, purchases are owing more to weddings rather than Diwali. Gold and silver coins like every year are preferred items. Last year the average spend per customer was somewhere around 50000 but this year it isn’t even half that amount.”

    These retailers are pinning their hopes on Dhanteras and let’s hope that they finally have their cash registers ringing on the auspices day.

    Also on Dhanteras, people buy steel items. Talking to Sumit Jain, Owner, Gift Gallery, he said, “Crockery is always an all time favourite. Like every year, this time too crockery items are popular gifting choices. Both china and glassware are popular gifting choices but we are seeing a big dip in sales. The market is not buzzing with consumers as it does every Diwali. Dhanteras is one day we are looking forward to but those are mostly steel purchases.”

     


    WHITE GOODS 

    On market trends in the last few years 

    Baldev Ahuja, Manager, Aarvee Sales (electronics showroom)- Market is down…four years back the market used to be buzzing but now because everything is getting expensive people are spending less on these items.

    		 [youtube width=”400″ height=”250″]http://www.youtube.com/watch?v=_IVkk-gpGkM[/youtube]
    On the most popular product this Diwali (LED) Saquib, Sales Executive, Audio Voice India Pvt Ltd- LEDs are more popular than LCDs because the prices have gone down. Also LEDs are better in quality as compared to LCDs.

    Baldev Ahuja, Manager, Aarvee Sales- People are more attracted towards LEDs this year because of the dip in prices.

    		 [youtube width=”400″ height=”250″]http://www.youtube.com/watch?v=B-TZcccS90M[/youtube]
    On the preferred gift items Saquib, Sales Executive, Audio Voice India Pvt Ltd – People this year are opting for more gadgets rather than home appliances, they go in for phones, ipods etc more as compared to LCDs [youtube width=”400″ height=”250″]http://www.youtube.com/watch?v=RKXr2hGOggc[/youtube]
    JEWELLERY 

    On most popular purchases this Diwali 

    Neeraj, Owner, Rama Krishna Jewellers- Gold coins are very popular this year, we have coins in all denominations; people are buying and investing more in coins this year.

    		 [youtube width=”400″ height=”250″]http://www.youtube.com/watch?v=d2k-84Twu78[/youtube]
    On how gold rates have affected sales this Diwali Lajpat Anand, Owner, Luxmi Jewellers- Lot of difference in the market this year…only people who have to buy for weddings etc are buying and even they have cut down on their budgets; as for other purchases, people’s budgets have been messed up because of increasing gold prices.

    Rahul, Manager, Rajesh Gems & Jewels- Big difference between this Diwali and last year is the gold rate that has gone up but it hasn’t really deterred people from buying gold during this Diwali…our sales have gone up as compared to last year.

    		 [youtube width=”400″ height=”250″]http://www.youtube.com/watch?v=rvPwnxqv6Pk[/youtube]

     

    CUSTOMER VOXPOP   Mrs Shukla, Housewife- As per the trend, prices go up every year, so obviously this year also it has gone up…but what can we do, we have to buy stuff for our own use and for gifting purposes.

    Nidhi, Working Professional- As compared to last year…we spend the same, Diwali is one special festival, so no cutting in costs, Its Diwali!

    		 [youtube width=”400″ height=”250″]http://www.youtube.com/watch?v=UmBk-uhlOl8[/youtube]



  • Petrol and rising prices may be downers but that doesn’t hold back consumers from their festive shopping Retailers enjoy festive cheer, report 50% spurt in sales

    No slowdown in shopping! Retail sales up 50% with Puja and Dassera

    By PRAMUGDHA MAMGAIN & SARAH JACOB

     

    Ms Shreya Gambhir, a 20-year-old architecture student in Bangalore, went into the Garuda mall last weekend to buy a watch, but walked out with much more. “While window shopping, I got tempted to buy a handbag worth Rs 1,975 from Accessorize,” she said.

     

    Shreya was among thousands of shoppers who braved rains, traffic jams and rising prices to flock to the high street and malls across metros and smaller cities, pushing sales of clothes and electronics goods in the first weekend after shradh by up to 50% more than last year.

     

    The consumer mood has reassured marketers who feared a slowdown in demand this season because of macro-economic concerns of rising prices and interest rates. “Robust sales during Onam and Durga Puja is an indicator of good uptake even in the forthcoming festivities,” Mr J Suresh, MD and CEO of Arvind Lifestyle Brands and Arvind Retail, said.

     

    The weekend sale was important because it was the first one after shradh – a 15-day period most people in the northern part of the country consider inauspicious for shopping – and preceded the beginning of Durga Puja, a mega festival in West Bengal.

     

    Consumer brands and retailers traditionally do 25-30% of their annual sales during the festival season, from September to early November. This time they were apprehensive due to signs of a slowdown. Headline inflation has been hovering at 10% despite the central bank’s aggressive monetary tightening through interest rate increases.

     

    It has pushed loan rates 3.5% in 18 months. Fuel prices have also been rising. Also, sales of cars had fallen for two consecutive months in July and August, after rising 25-30% for two years.

     

    So, overall, retailers had a lot to worry about, heading into the season. But the jump in sales during Onam comforted them and set the mood for Dusshera, Dhanteras and Diwali. And last weekend’s sales confirmed that inflation won’t impact festivities much. “We are a little surprised,” said Mr Sooraj Bhat, brand head of Allen Solly, a casual wear brand of Madura Fashion & Lifestyle.

     

    Incentives Galore

     

    The company had planned for 15-30% same-store growth in the festive season for its different brands, and it has already exceeded it. Allen Solly sales have increased 25-45%, he said.

     

    Mr Suresh of Arvind Brands, which posted over 50% sales growth during Onam, expects high demand to sustain in the North even after festivities due to winter shopping, while other parts of the country may witness a slowdown if economic environment remains bleak. Mr Kabir Lumba, MD of Lifestyle International, which operates chains Lifestyle, Max and Home Centre, and owns brands such as Splash and Bossini, said festival sales will be strong but the period after could be uncertain.

     

    Companies and retailers are offering incentives such as discounts, free gifts and interest-free finance schemes to enthuse buyers hurt by rising cost of food, fuel and loans, and they are backing it up with aggressive advertising campaigns.

     

    “We bought a lot of stuff during the end of season sale. Yet, we have come to see if we may find a good bargain in terms of festive discounts and free gifts,” said Mr Vishal Thakkar, who bought a mobile phone at 10% discount from retailer Vijay Sales at Atrium Mall in Mumbai.

     

    In Delhi, parking lots at malls such as DLF Promenade and Ambience Mall at Vasant Kunj ran out of space and there were long traffic jams at shopping centres where eating joints such as Mocha, Market Cafe and Smokehouse Deli were packed and retailers reported heavy walk-ins.

     

    “Of course, we are stung by high prices. But this is the festive season and we don’t mind spending during this period,” said Mr Abhishek Khanna, an IT professional, who was shopping at Delhi’s Khan Market. He wanted to buy clothes and home decor items.

     

    A sales executive at a Big Bazaar outlet at Rajouri Garden in Delhi says gift items including home furnishings, gifting and electronic items are driving sales at the store.

     

    One of the Lifestyle stores in Delhi reported up to 40% conversion rate, or percentage of visitors who buy from the shop. Retailers say walkins have increased 10-15% each day after Shradh. The action in Kolkata has peaked in the last two weekends with popular malls such as Forum, City Centre and South City reported up to 20% growth in footfalls and businesses over last year.

     

    Leading retail stores like Shoppers Stop, Fab India and Westside, and the old shopping areas like New Market and the hi-street stores in Gariahat were packed with shoppers. The average bill size of India’s largest retailer Future Group went up 20%.

     

    “While fashion always takes the lead during Durga Puja sales, this year a surprise growth driver has been the home segment,” Mr Manish Agarwal, business head (East), Future Group, said. Sales of furniture, curtains, home decor, bed sheets and carpets have grown by more than 50%, he said.

     

    Durable makers such as LG, Samsung and Godrej grew at a higher pace than last year as consumers splurged on flat panel televisions, digital cameras and hi-end home appliances.

     

    “We have already exhausted our inventory for 3D televisions, frostfree refrigerator and microwave oven. We expect similar rush for Diwali,” LG Electronics India Regional Head (East) Mr Ranjit Kumar said. Kolkata’s largest durable retailer Great Eastern witnessed 22% sales growth this year and did around 700 consumer finance deals a day in the last one month. While rain tempered footfalls across retail stores in Bangalore for a few hours on Saturday and Sunday evening, most families walked out with at least two shopping bags in hands.

     

    “We have had a steady flow of customers and expect it to continue with holidays over the next week,” a sales staff of Joyalukkas Jewellery store said.

     

    (With inputs from Neha Dewan in New Delhi, Writankar Mukherjee in Kolkata & Sagar Malviya in Mumbai)

     

    Source:The Economic Times

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