We see extreme potential in Tier 2 & Tier 3 markets: Vinod Kumar Gupta

The great Indian Festive season has started amid the COVID-19 pandemic. We all know what kind of a washout the first half of 2020 has been when it comes to businesses and even personal lives being completely disrupted. Given the strict Government directives on maintaining social distancing, the huge crowds of shoppers that usually throng the markets during this time might be a lot less this year.

Also read: There will be a rise in sales this festive season: Sunil Narula, Panasonic Life Solutions

In normal circumstances, brands look at the festive season as an opportunity to gain maximum ROI, leveraging the consumer sentiments during this time. However, the unprecedented conditions have dampened the economy so far. While some are sceptical about businesses picking up during the rest of the year, we are also seeing a general mood of optimism.

Amid such a scenario, Adgully has reached out to marketers and publishers across India to gauge the sentiments during the festive season this year as part of our special series on ‘Festive Mood’. Over the next few weeks, we will be bringing the views and insights from various markets on how marketers and publishers are endeavouring to trigger a revival and give a boost to festive sentiments.

In this interaction with Adgully, Vinod Kumar Gupta, Managing Director, Dollar Industries Ltd, speaks about the shift in consumer behaviour and sentiments during and post the lockdown, digitisation becoming the key to sustenance during the pandemic, and more.

How do you see the consumer sentiments across the nation this year? Which markets are seen as leading the rebound and how? What factors will drive growth this festive season? How much do you see festive sales getting impacted due to COVID-19 this year?

We have witnessed a drastic shift in consumer behaviour and sentiments during and post the lockdown. The never-seen-before impact of the COVID-19 pandemic has evidently impacted various sectors. With a major dent in income, consumers have now restricted their expenses only towards necessities and essentials.

We see extreme potential in Tier 2 and Tier 3 markets, alongside the Tier 1 cities and metros. E-commerce is one of the driving forces this season, in addition to the conventional brick and mortar stores.

While consumers are still skeptical and cautious about going to offline stores, we are seeing a gradual shift. With necessary precautions and safety measures, brick and mortar stores are getting traction. Additionally, e-commerce has been a boon during the pandemic. Therefore, we are optimistic that sales graph will definitely pick up.

What kind of integrated marketing activities are you planning for the festive season? On which platforms will you be investing your ad spends more and Why? What kind of digital push are you looking at?

Digitisation has become the key to sustenance during the pandemic. While we are focusing on digital ads and social media amplification, we cannot ignore the immense potential of traditional advertising mediums like outdoor and print. Therefore, our marketing strategy will be a mixed blend of digital and conventional mediums.

Do you see retail footfalls increasing during the festive season, given that people are still not venturing out for shopping in a big way? What alternate routes are you looking at to shore up sales – such as e-commerce, online purchases, D2C initiatives?

Brick and mortar sales are gradually picking up. However, we are optimising our e-commerce presence and ensuring a smooth supply chain management for our consumers. Our products are available at our retail counters as well as e-commerce portals.