Ecomm rings in festivities with rs. 2kcr ad spend 

1. Ecomm Rings in Festivities
with Rs. 2kcr Ad Spend
Even smaller players to join party; focus to shift from TV to print &
digital media

2. Contd..
With Diwali approaching, ecommerce companies are getting ready for a big round of
fireworks. Cash-rich biggies such as Flipkart, Amazon and Snapdeal, as well as smaller
startups, are expected to together burn ` . 2,000 crore in the four months around Diwali as
they try to wean away more consumers from traditional stores to online marketplaces
during the all-important festival season. Shah Rukh Khan and Aamir Khan will join a bevy of
celebrities promoting ecommerce companies in the multimedia blitz that, media planners
say , will shift significantly towards print and digital this Diwali from television. Last year,
ecommerce companies had spent as much as Rs 1,300 crore on marketing and promotion
during the September December period, these people said.
While last year top companies such as Flipkart, Amazon, Snapdeal and Quikr were the big
spenders and most visible brands during Diwali, this year even small startups are going to
be active, said a media planner. “Therefore, there will be a huge shift of ecommerce
advertising money from television to digital and print,“ he said. Until last year, ecommerce
companies spent 60% of their marketing budget for the festival season on television
marketing, media buyers said. This year, just about 35% is expected to go to television.

3. MARKET EXPANSION
Ashish Jhalani, founder at e-Tailing India & Indian School of e-Business (ISeB),
said his company tracked around 700 ecommerce companies of some scale
and size in 2014. This year, the number has grown to more than 1,700,
including small and big players, he said, which points to market expansion.
A growing number of startups are also advertising to showcase their
offerings and leave an impact on consumers. According to top media buying
firms, the heavily funded online startups are the ones splurging without
watching returns on investment.
“Unlike the general market sentiment of slump, advertising in media is
seeing a significant up swing. Almost all advertising (inventory) has been
blocked in the October-December quarter,“ said Navin Khemka, managing
partner (north and east region) at Group Mowned media buying firm Maxus,
which represents Hero MotoCorp and Paytm.

4. Contd..
“A lot has to do with emerging categories in the online space. Online
advertisers are neutralising losses of traditional advertisers and leading
to huge spurt in demand.“ Lakshmi Narasimhan, chief growth officer at
Group M-South Asia, said during the festive period companies spend
Rs. 14,000-15,000 crore on advertising. “Retail sector (ecommerce plus
brick and mortar) will be about 8-9%. The split is more or less equal
between ecommerce and retailers,“ Narasimhan said. “Our estimates
are that retail will grow around 15-16%, primarily led by ecommerce
players. While mar gins are under tremendous pressure, given the
importance of festive period, one expects an increase in spends by
both established retailers and several new retailers.“

5. SUPPLIERS SOUNDED OUT
The buzz for Diwali among ecommerce companies can already be sensed from
suppliers and allied sectors. A large corrugated boxes manufacturer that supplies
packaging material for both Flipkart and Amazon said the companies have doubled
the order compared with last Diwali. One of India's largest ecommerce companies
has doubled the commissions for coupon companies and cash-back sites from 8%
in August to 16% for shopping through mobile app, said Aman Jain, founder of
cash-back site GoPaisa. “It is very likely they (ecommerce companies) will come
with a bang and they will come with no holds barred for sure,“ said the top
executive of one of the largest brick and-mortar retailers. “Omni-channel strategies
of the likes of Future Group and Shoppers Stop are not going be in place during
Diwali this year, so it will be really online versus offline.“ Market watchers said
growth had slowed for ecommerce companies during the April-June quarter and
now they have more reason to become aggressive to recoup the lost sales. Vipin
Nair, joint director and cofounder at sports marketing firm Baseline, sees sporting
events acting as a catalyst.

6. Contd..
“In Q4 (fourth quarter), while online, retail and FMCG (fast-moving consumer
goods) naturally allocate higher advertising spends, high-decibel sports
events like the India South Africa series and ISL (Indian Super League) have
escalated spends,“ he said. “Brands, which are even otherwise in spending
mode, have pre-allocated even higher spends in the quarter.“
PHYSICAL RETAILERS' APPROACH
Since offline retailers with their limited resources cannot compete with the
heavy discounting strategies of ecommerce companies, physical retailers will
rather focus on their offerings this year. For example, Big Bazaar will increase
its offerings in premium products in home, kitchen and dining segments.
“We are introducing a lot of higher-price items, also in niche classes. For
example, cutlery for gifting purpose and other home and kitchen category
products in the range of ` . 10,00015,000,“ said a senior executive, asking not
to be named.

7. Contd..
Department stores such as Shoppers Stop and Lifestyle would focus on fresh
merchandises and step up private label offerings. Akshay Mehrotra, chief marketing
officer at Big Bazaar, said the company is “well prepared“ for the Diwali season but
declined to elaborate. Meanwhile, ecommerce companies are telling suppliers,
vendors and logistics companies to ramp up. Gurgaon-based logistics company
GoJavas, which counts Snapdeal, Jabong and Lenskart among clients, is enhancing
its automation. By September, an automatic sorting system that can process up to
1.5 lakh packages daily will be in place. “We expect volumes to touch two to three
times of normal pre-festive season,“ said Chief Operating Officer Vijay Ghadge.
Srini Murthy , senior vice-president for marketing at Snapdeal, said this year his
company will focus on customer experience.
“We will try to make sure we give the best offers but the new news for the
consumer will be great delivery experience and many more brands versus last
year,“ he said.

8. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015