OOH to be back to pre- COVID-19 levels by end of December: Dawinder Pal

After a muted festive season last year amid the COVID-19 pandemic, this year, the willingness to spend is higher. As per a ZestMoney Survey, 72% of Indians plan to splurge on electronics & gadgets, while 59% prefer BNPL to fund festive purchases. 62% of the respondents revealed that festive budgets have gone up compared to last year. A recent market research by YouGov gives a big boost to the Diwali Expense Index, which is generally indicative of Q3 sales growth in India.

The Indian festive season is a crucial time as consumer demand is at its peak with many planning several small and big-ticket purchases. With increased vaccination and the general opening of the economy, the survey has witnessed a positive sentiment around budgets and shopping at physical stores, even as online shopping continues to be popular among people.

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As part of Adgully’s FESTIVE MOOD series, we have been covering the market, brand and consumer sentiments during the festive season this year. In conversation with Adgully, Dawinder Pal, Head of Marketing, Bikano, speaks about how the portal is leveraging the festive season this year, the overall festive spends, online jewellery buying trends and a lot more.

What kind of trends have you seen in consumer spends, ad spends by brands & sales during this festive season?

Home consumption of foods increased due to improvement in consumer mobility. The demand for small packs has subsequently increased too. We have seen a surge of 25% in average monthly sales of our go packs in the second quarter.  Nearly 25-30 per cent of traditional namkeen and sweets sales happen during the festive season.

Numerous companies across different sectors are capitalising on the online shopping momentum and have re-shifted their focus on digital strategies, especially ahead of the festive season, to up their marketing efforts. The sector, which has been investing lavishly on print, may decide to slow down the efforts during the upcoming festive season as marketers want to be more mindful of their investment. While there has been a clear decline in mainline media spends on print and outdoor, the pandemic has presented new opportunities in terms of e-commerce and OTT platforms, especially for FMCG.

For FMCG products, be it food, shampoos or beverages, marketers have spent mainly on all modes of communication to let the consumer know they are not behind in coming up with products that have value-added benefits. Over the recent past, advertising spends from multiple brands have increased in the digital space. Most brands are playing safe and would want to advertise on mediums where the consumers are present. Mediums like digital are witnessing increased spends as consumers spend more time on phones, laptops and OTT platforms. Advertisers are moving where the audience is and that’s natural as they want to maximise ROI.

With people staying at home, both household consumption by volumes as well as frequency was higher across food and non-food products. Due to the lockdown and restrictions, the footfalls on the streets have been adversely impacted, and this has a direct bearing on out-of-home consumption. However, when it comes to OOH consumption, it has improved in recent times as people are leaving their homes with the intention of making a purchase and traveling for their business and personal reasons. With a successful vaccination drive being conducted and a subsequent reduction in the number of COVID-19 cases, people are more confident to step out. We believe OOH to be back to pre- COVID-19 levels by the end of December and we believe 2022 will be a year of prosperity and growth.

What is the kind of online/ offline split seen in brands’ marketing strategies? What is your overall festive season spend for this year?

An online-offline marketing approach is increasingly more popular among big and small companies. In fact, several studies reveal that 47% of companies today have an offline strategy to awaken interest and strengthen online traffic. Additionally, 68% of companies use an online marketing strategy to promote brand loyalty, a traditional goal of offline marketing. With the significant increase of Internet penetration across metros and non-metros, shopping online on apps is becoming a new-age trend in the Indian market. There is a significant need for FMCG brands to swiftly adopt digital strategies and cater to consumers online as several brands have seen an uptick in e-commerce orders since the lockdown.

India’s offline retailers have been talking about converting to omnichannel retail for some time. However, not all have delved into connecting their offline stores to e-commerce. The pandemic has re-established the need for retailers to serve more shoppers on both channels. Initially, the category used to have major spending on TV and Print during the festivals across categories, but have seen the spends on Digital and OOH as well for capturing additional eyeballs and reaching out to potential customers.

What kind of campaigns and marketing strategies have you drawn up to engage with your consumers this year?

We have been doing contests around Diwali to engage our end users and also tying up with celebrities to build further recall for the brand on social media. Channel partners are being engaged using print in regional as well as national media outlets. With the restrictions being lifted, we have started with RWA activations, exhibitions and event sponsoring as well from last month. Keeping in mind the expected surge in sales during the festive season, we have recently launched a new range of delectable chai time snacks, namely Bhakar Badi, Tikoni Mathi, Gol Mathi, Matar Para, Methi Mathi, Mini Samosa and Chai Puri. We have roped in Chhota Bheem as the brand ambassador for our extrude category, which includes Ringz, Puffees, Cheese Balls, Pasta Crunch, and Jungle Safari. For Diwali, we have launched 15 gift packs – Albela, Abhinandan, Anmol, Baked Delight, Utsav, Meetha Chatpata, Umang, Uphaar, Anupam, Rasmol, Royal, Meetha Bandhan, Uttam, Dry Fruit Delight, and Shahi Nazrana.