Dasera – Diwali Dhamaka for Retailers

A former colleague of mine, a Swiss gentleman once quipped that everyday in India is a festival day! Well, he was right in a way, maybe not quite literally though. With so many religions and diverse cultures, indeed every day may have some form of festival in India…

This October month is one of those rare ones – that benefit Grocery Retailers, typically supermarket and hypermarket chains like Food Bazaar, Reliance, Spencer's, More, SPAR, EasyDay and others. Navaratri / Dasera, which commenced on 27th Sep continues into the first week of October and Diwali will be celebrated during the last week of the month. Typically, the monthly Grocery shopping happens once a month, usually in the last week of the month gone by or during the first week of the current month. But in this case, families would have to shop twice, and probably more quantities than usual – roughly 1.5 to 2 times the average quantities. Navaratri is celebrated in different forms and signify different things for people across the country. in Tamil Nadu, Andhra and Karnataka, families set-up dolls at home – popularly known as the “Kolu”. During this period, Goddesses Durga, Lakshmi and Saraswati are prayed and celebrated three days each. Every evening, women folk and children visit houses of neighbours and are fed with “sundal” – the nine grains, one each every day. Now – this category is shopped for extensively before the festival commences which may not be consumed so much otherwise through the year. Also, the visitors are gifted small household articles usually made of plastic and this category also sees an increase in sales during the period. Fruits, which are distributed benevolently, see a surge in price and hence consumers prefer shopping at Supermarkets and Hypermarkets for a better bargain.

In Gujarat and West Bengal, it is more a societal occasion. While Hindus celebrate it the most, people across all walks of life join into the celebrations. While “Dandiya” – an art form of dance is the most happening one in Gujarat, the Bengalis install huge “Pandals” which showcase Goddess Durga in different forms. People visit Pandals day and night and wear new clothes (in Bengal) while late evening Dandiya sessions are regular during the week. And obviously, new clothes are something that every one looks forward to! Even Western / Foreign brands (like Benetton seen below) join in the festivities by promoting themselves during this period.

Just around the corner is Diwali – the festival of lights and the biggest grosser for Retailers across categories. This festival is also celebrated in its unique way across the country. While families shop for Electronics and Gadgets, Home Furniture, Clothing and Accessories, sweets for distribution and consumption is a big hit too. Retailers and Brands have already started advertising for the ensuing Diwali as well and is expected to step up their promotions starting this weekend.

If there is one category that sees a low, it’s liquor and alcoholic beverages. People generally refrain from visiting bars / consuming such beverages due to the ensuing festivities but things are indeed changing. And hopefully, this category will support Retailers in November which is expected to be one of the lowest months  for business since there are not major festivals (duh) until the Christmas season commences. Anyway, wishing each one of you Seasons’ Greetings and of course, Happy Shopping!

Controversial Ads, Branding and Footfalls

There has been a lot of furore over the recent so called “indecent” advertisements in the mainline media by “Flying Machine” (FM), a popular denim wear brand in India for close to two decades now. The brand, which was one of the earliest entrants in the denim wear market competed with international ones such as Lee, Levis and Pepe since the late 90s and has hence maintained its position as an entry level fashion wear due to its affordable price tag and distribution reach – since it shares shelf space with other brands such as Arrow and Lee from the house of Arvind Mills. The debate is about how much indecent an ad can get and what the society would feel rather than its impact on sales! Well.

(Suggested reading: National Shopping Day)

Denim Market in India is highly unorganized – with less than 25% of all denim wear sold at Organized retail outlets such as Shoppers Stop, Lifestyle, Central Malls, MegaMart, Brand Factory, Fashion @ Big Bazaar and other exclusive brand stores. We have denim wear (bottoms) starting from as low as Rs. 200 (1 USD = Rs. 48 approx) on footpaths at Linking Road in Mumbai, Janpath in New Delhi, Commercial Street in Bangalore, etc. to over Rs. 10,000 across premium brands such as Tommy Hilfiger and Diesel and in the range of Rs. 20,000 – Rs. 40,000 across exclusive luxury brands such as Versace and Armani. Denim for long was not considered a comfortable dress to use in India due to various reasons;

• The texture/fabric was rather thick – and many thought it wasn't suitable to wear during hot and humid weather which is the case across the country for 6-9 months a year
• Washing the Denim wasn’t an easy affair since most households (in the urban areas) didn’t have Washing machines and maids would complain washing denim by hand due to its heaviness when soaked in water
• It wasn’t well accepted in the society – Colleges had banned them, Offices preferred formal attire and hence Denim was rather dedicated for a select few special occasions
• Women were not the main Target consumers, essentially because denim bottom wear couldn’t be well coordinated with other dresses in the wardrobe
• Blue and Black were the only colours mostly and the “fit” was standardised

Things have changed and how over the last decade!

The fabric has been well-treated to ensure it is light-weight and easy to wear. Also most reputed brands mix denim with cotton fabric, thus ensuring sweat is absorbed and hence making it a comfortable thing to wear all through the year. A fully automatic Washing Machine from a reputed brand that used to cost over Rs. 20,000 during the early part of the past decade is almost half the price now. Most urban households have moved away from the concept of house maids (especially for washing clothes) and now boast of semi-automatic or even fully-automatic washing machines which also dry the clothes after washing within an hour! Most colleges do not have such bans anymore, as long as the students wear decent clothing! More and more offices are moving towards smart work-wear and hence denim (especially on Fridays / Weekends) at most offices and all week across companies in the IT and ITES sectors, Ad agencies, etc. is an accepted norm. Denims are now available in various colours and women coordinate with traditional looking “Kurtis” or short-tops. To the benefit of consumers and retailers, the market has indeed evolved for good. The number of “fits” available today is exhaustive and one can really choose the best fit for oneself – mostly across brands.

(Suggested Reading: Customer Service)

So, do brands in this space still need controversial aspects to advertise, to divert attention? FM is not the only exception. During a Fashion Show last year, actor Akshay Kumar, the brand ambassador for Levi’s walked up to his wife and yester year actress Twinkle Khanna who was seated in the front row for her to open the button fly in full public view! The act was a trending video online and the photos would have been searched a zillion times! Bizarre, some quipped. What a great attention seeking tactic, many others said. “Seeking Cheap Publicity” – a few blasted. Well, no more than that.

Leading Business newspaper The Economic Times has carried an interesting article over the weekend that illustrates how internationally denim brands use controversial advertisements and other such acts especially in the print media to create attention. The big question though is “Has it increased Sales?”. the answer is a big NO. But what it does is create a flutter effect – people get talking about it and the word spreads faster these days than before, thanks to powerful social media tools such as Twitter and Facebook. For Retailers (and Brands), the most important outcome for any investment is a substantive increase in footfalls at its stores. Research has it that only 30% of men and 60% of women who enter a store undertake “product trials”, however over 80% of those who took a trial end up buying the product. And this applies all the more for Denim-wear because each fit is different and unique in its own sense. Now, do such Ads pull shoppers into the stores? No. And hence the question of “new trials” doesn’t arise. However, Ad agencies benefit enormously in the meanwhile. #justsaying

(Suggested Reading: The Levi’s way of collaboration)

I bet if such ads are a great way of brand-building, especially when the Brand is communicating to middle-class masses who neither understand nor appreciate such bold communication. It is a lot different when showcased at Fashion Weeks in London or Lisbon, Paris of New York. For now, the focus should be on creating Ads that have a pull-effect; one that attracts the eye of potential shoppers and drives them to the stores. If not anything, the Retailer’s names and contact numbers could have been a font bigger in the said Ad. If only someone is wanting more footfalls, that is.

Alcohol and Consumers

According to a recent report by World Health Organization, alcohol use results in the death of 2.5 million people annually. Nearly 4% of all deaths are related to alcohol. Most alcohol-related deaths are caused by injuries, cancer, cardiovascular diseases and liver cirrhosis. Globally, 6.2% of all male deaths are related to alcohol, compared to 1.1% of female deaths. Worldwide, 3.2 lakh young people aged 15-29 years die annually from alcohol-related causes, resulting in 9% of all deaths in that age group. Alcohol raises the risk of as many as 60 different diseases, according to a recent study in the medical journal `Lancet'. Nearly 62.5 million people in India drink alcohol with per capita consumption being around four litres per adult per year. For every six men, one woman drinks alcohol in India. Over 40% of road crashes occur in India during the night, with one-third of them being due to drunk driving. It observes that India saw a robust increase in recorded adult per capita consumption of alcohol. When it came to only drinkers, the average per capita consumption of pure alcohol of a 15-year-old and above in India between 2003-05 was 22.25 litres (23.93 litres among men and 10.35 litres among women). Nearly 62.5 million people in India drink alcohol with per capita consumption being around four litres per adult per year. For every six men, one woman drinks alcohol in India. Over 40% of road crashes occur in India during the night, with one-third of them being due to drunk driving.

Actor Imran Khan had recently announced to file a Public Interest Litigation (PIL) at the Bombay High Court challenging the State Government’s proposal to ban “alcohol consumption” under the age of 25 years according to a recent news article in Times of India. The co-petitioner is his brother-in-law Vedant Malik, 22, who wants to "espouse the cause on behalf of youth below the age of 25 years", says the PIL. The respondents are the Maharashtra government, the secretary of the department of social justice and state excise commissioner. The PIL states that the government "seeks to impinge on the right of equality and personal liberty" of the youth, who are otherwise vested with the right to vote, marry, serve in the military, drive vehicles and enter into legal contracts. The PIL informs that legal drinking ages worldwide are usually 18 to 21. Incidentally, Maharashtra's and Delhi's drinking age limit of 25 is among the highest in the world, except for Maharashtra's Wardha district, where it is 30. The PIL states that the petitioners were surprised to find that the 25 drinking age limit was actually in force since September 26, 2005, but was not being implemented. "The petitioners were therefore under the bonafide belief that the age limit to apply for a liquor permit was 21 years and not 25 years,'' the PIL says. The petitioners then read news articles saying that the Maharashtra cabinet on June 1, 2011 introduced a de-addiction policy that said the legal drinking age for hard liquor was 25 and mild beer 21. They decided to challenge the higher drinking age and asked the department of social justice and empowerment and excise commissioner for the policy. They learnt that the policy was "only at a nascent stage of discussion and yet to be implemented.

I would say this is indeed a noble move had it been done by any other person than the said actor who played the role of an urban youth in his recent movie “Delhi Belly”, which was produced by his uncle and ace actor Aamir Khan. In the film, the actor and crew have professed and performed some of the most vulgar acts (some really meant only within closed doors) which even couples in their 30s (without their children) couldn’t fathom watching at the cinema! The fraternity and junta laughed off the whole episode, claimed and hailed the actor-uncle duo to have taken Indian cinema to global echelons! Neither the saffron brigade nor any mullah condemned or took them to the roads or to the court; no women’s panel took notice of such derogatory remarks in the film. A song featuring “chaste Delhi / national abuse” was reformulated in the soundtrack which went on to become a Chartbuster. Indeed, there was some criticism, but Aamir Khan himself appeared on Tv to justify this and said it was just a song, just a movie! And Hyundai Motor Corp. whose brand ambassador happens to be Shah Rukh Khan (apparently the two Khans are considered arch rivals and do not see eye-to-eye ) announced that it would sue the movie-makers due to a dialogue spelled in the film, where a modified “Hyundai Santro” is abused with the choicest derogatory words which goes “this looks like the outcome if a donkey had f****d a rickshaw!” The film grossed over INR 20 Crores during the opening weekend and was declared a super-hit at the Box-Office, an important attribute to commercial success!

Look who’s talking about social causes! And in a recent interview in Times of India, the actor says he is supporting the freedom of choice! Well, we live in a democratic set-up and each one of us is free to propose our likings and wishes. But a youth icon such as Imran Khan standing up for a frivolous cause such as this is rather disappointing.

As consumers, we all have the right to choose what we want to buy and consume. In fact retailers like Spencer’s, Hypercity, SPAR, More, Total, star Bazaar and many more have separate sections within their stores that are dedicated to alcohol. At Airports, Duty Free Liquor and Tobacco is one of the fastest selling items. I remember way back in 2001, Spencer's stores in Chennai city would sell alcoholic beverages within a distant corner of the store, or rather abutting the main supermarket. Liquor was not part of monthly shopping baskets earlier, which has changed dramatically over the years. The typical 365 litre refrigerators have given way to larger capacity ones, thanks to the increasing consumption patterns of consumers. Today, there is a specific place allotted for wine, beer, soda and other beverages within the cooling equipment. Consumers have evolved and know what to drink and when to drink. most boutique Restaurants that have opened recently have liquor permits and serve alcohol (no one really checks the age). Even Pizza Hut started serving wine at some of its outlets which was later withdrawn due to poor response. While every one talks about “legal drinking age”, it is not implemented in its spirit.

The issue arises when unwanted propaganda such as this is promulgated. When the Government issued such a notice (in Maharashtra), not a single liquor company or a Retailer came forward with such a PIL. For obvious reasons. No one wants to be known supporting alcoholism. But the way the actor has done this doesn’t merit anyone other than him with some additional publicity which I am sure he could do without. Even if he had filed it as a “consumer”, his agency could have remained silent about it. (I am not even bringing his religion into the picture as this blog is not meant for discussing such purposes).

Consumers today are well aware of their rights with permissible laws (and outside). They are learned, educated and know what is really good for them and their families. Whether the PIL is granted or rejected or not, alcoholism is a peril that will continue to daunt the society unless managed well (by each one of us) with personal and social responsibility.

Cheers to Consumers.