FUTURE OF ADVERTISING IN THE GEM & JEWELLERY INDUSTRY


 

 

“Shining Stars.”

The regional shine nationally: A peculiar phenomenon of Indian jewellery brands.

We are a nation of many cultures, a nation globally unique owing to its diversity. Over the years as I travelled the length and the breadth of this country, I realized a new world meets you every few miles. From food, to architecture, to language, to apparels you will find a new hue, a unique lifestyle. This diversity has had an interesting impact on the realms of brands. It has created two level playing fields national and regional, which operate on equal strengths.

There are some categories where the regional v/s national brands dynamics thicken and often the regional brand trumps in merits. Real estate, furniture, Retail, foods and textiles are some of them. Regional brands have been in existence way before the national brand concept came into being. The era before television, was the era where there wasn’t a national media binding the diverse nation into one. After the advent of television even though a national presence became possible it wasn’t easy. Establishing your brand regionally with more region specific mediums was simpler, while making a mark nationally was an expensive challenge, a feat that the likes of Unilever, Tata, Procter & Gamble and ITC could achieve, that too was a possibility owing to their national distribution capabilities. Television surely was instrumental in helping many regional brands go national for instance Zandu, Amul, Rasna, Chick, Margo and many more. But the regional v/s national phenomenon still is a strong element in the brandscape of India.

Even today there are many categories where there exists no national brand existing or emerging and even if there is a white-space to occupy it is a herculean task. Amongst all jewellery as a category tops the list, the high value, high margin retail brands yet haven’t come up to the national level like Tanishq. Tanishq too has braved a multiple challenges to get where it is today.

Currently there exists only two national brands in the jewellery space, Tanishq and Reliance, of which the latter is struggling to establish itself and will take time. But in the same space dwell regional brands that have managed to garner national attention and are paving their way to become a strong national brand. The likes of Kalyan Jewellers, Malabar Jewellers, Joy Allukas, PC Jewellers, Lalitha Jewellers. For instance the Mumbai rooted Tribhuvandas Bhimji Zaveri, has created strong presence in Delhi these brands are now competing with Tanishq nationally. Tribhovandas Bhimji Zaveri Ltd. (TBZ) is a noted Indian jeweller and jewellery retail chain based in India. Established in 1864 (153 years ago) The company today, has 37 showrooms in 23 cities across eleven states, including Mumbai, Surat, Kochi, Bhopal, Hyderabad, Kolkata, and Rajkot.

The brand has evolved with time and adapts communication that makes them be perceived as a national player. Rishton ko savarte aaye hai hum….their campaign talks about the connecting the older generation to the new, designs a combination of the two, a message that solves the problem of design vulnerability.

But no blanket national brands are emerging, intrigued by this dynamics I dived into comprehending the reasons that result in a brandscape so regionally heavy and the insights are interesting:

Reasons why Regional Brands shine nationally:

  1. Trust:Jewellery is a high-involvement category, the precious yellow metals core currency is trust. The mistrust in the quality of gold one is buying makes them choose the comfort zone of buying from the jewellers their family has known for generations. Generations of a family in India often buy gold from one jeweller. The concept of a family jeweller is a strong reality in India.
  2. Design: Regional players win heavily on traditional, authentic design that reflects the cultural nuances. Also the traditional designs are known and revered for their intricate craftsmanship. Mothers’ are more than happy to invest in traditional designs as they are the need of life-altering occasions like marriage. The vulnerability however steps in when the next generation, the daughters voice their choice of a contemporary designs. The designs that work for the new generation is a blend of traditional and modern, this is where the national brand scores over the regional player. Here is where Tanishq gets a brownie point over regional brand, as they have best of both worlds. However regional brands are quickly catching up and capitalizing on this trend, for instance TBZ has started a new light of design which appeals to the new generation. Hence this can become a great impetus for national brands to shine.
  3. Rates: National brands have their limitations when it comes to providing spot discounts over catalogue prices, as it becomes a matter of authority, ledgers and economies. But a regional player being an owner driven setup has the flexibility of incentivising big ticket purchases by spot discounts.
  4. Resale:Yet another decision making element where regional players earn a brownie point. Going to the same jeweller they have bought from gives them a chance to get higher resale value for their gold, and for the regional player it is about maintaining relations, the same isn’t true for national brands.
  5. Relationships:We are a country that operates on the warmth and goodwill of relations. This become one major area where regional players score highly over national players. The regional player know their customers by faces, name and vice-versa. For instance the comfort you share with your local kiranawala is valued more than the anonymous experience at the supermarket with professionals. The familiarity factor plays an important role, as customers truly indulge in the home like services and special treatment and word-of-mouth becomes an important fuel in building a regional brand.
  1. Consider making a matrix based on all these factors and when you map jewellery brands on it you will find that the regional players score higher on each of the parameters. They have the pedigree of craftsmanship. And it is these factors that can help them be a national brand, for instance Kalyan jewellers, Malabal jewellers and Joy Alukkas are hiring national level celebrities like Amithabh Bachchan, Aishwarya Rai, Kajol to create an impact across the country. 20 years back no one knew Kalyan Jewellers even in Andhra, but 10 years back when they engaged Nagaarjuna as their ambassador they became a huge brand in Andhra. They follow suit nationally by having the Bachchan’s on board.

Kalyan Jewellers is an Indian jewellery store chain. It was founded by T. S. Kalyanaraman, who started their first jewellery shop in 1993 in Thrissur, Kerala, India with a capital of ₹7.5 million (US$110,000) and has since grown to become the largest jewellery store chain in India.[1] With approximately 8000 employees, the chain has 100 showrooms across India.

Kalyan Jewellers have partnered with a number of celebrities to be regional brand ambassadors, including Amitabh Bachchan and Jaya Bachchan, Shah Rukh Khan, Katrina Kaif in North India, Manju Warrier in Kerala, Nagarjuna Akkineni in Andhra Pradesh and Telangana, Shiva Rajkumar in Karnataka, Prabhu Ganesan in Tamil Nadu. Aishwarya Rai Bachchan was paid ₹100 million (US$1.4 million) per year for a two-year deal with Kalyan Jewellers to be a nationwide brand ambassador, which was formerly Sushmita Sen. The advertising and marketing budget of Kalyan is around ₹900 million (US$13 million). Also Katrina Kaif for the young generation. Har Bharatiya shadi ke liye.Uses celebrity strategy mostly, and this has made it go national.

Today the possibility of a regional brand going national is higher than a new national brand succeeding, due to the new media efficiencies’. Digital targeting, simpler national advertising options make it easier for regional players to dream national. On the other hand it is difficult for national brands to establish themselves efficiently, we only have a few and they belong to the big-houses, Tata and Reliance, the names people trust. This scenario is only true for Gold, as for platinum and diamonds the scenario changes are you see customers absolutely comfortable buying them online owing to the forever mark and a different attitude towards the jewellery. Gold being a cultural element of importance has a peculiar nuance and that is for now heavily rooted in the known and loved regional brands.

Originally published  in Gem & Jewellery Industry magazine.

 

The Long and Short of it.


Stories are the earliest forms of communication known to mankind, they have stood the test of time; we share lessons, morals, beliefs and any kind of emotion through our stories. Advertising is no different and I have always believed that advertisers are story tellers. Today as advertising is adopting the modern internet space, we are experiencing the next level of storytelling by advertisers – the long format advertising, usually 1-5 minutes duration. They are fast becoming the popular new kids on advertising block. It’s encouraging to see advertisers keep a purpose and an emotion at the heart of the story and the products placed in the background, it sure reflects the maturity that the society and the advertising community is undergoing.

But as we speak today about 90% of these stories don’t serve this purpose and fall short of touching the core. I hope we don’t fall in the trap of long format for the sake of it. A long format ad is no different from a good short ad or good film making, the principles remain the same. Take for instance one of the most viewed ads on internet; the ad for a French toilet paper brand Le Trefle, the Emma ad, this was actually a 40 second TVC or Ambuja cements ad with wrestler Khali which is just more than a minute.

Now is the right time to reflect and realise the power of such a format and ensure that this is not reduced to being an extended TVC by just changing the duration from 30 seconds to 3 minutes. It’s time we realise it’s not about the duration, but the determination to highlight a purpose and bring about a change; it’s not about the number of hits, it’s about the number of hearts touched; it’s not just about ‘likes’, it’s about Love; and it’s not about product selling, but story-telling.

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46690_India_Jan_Sale_IFE_81.5×41.5.indd

British Airways “fuelled by love” online campaign by SapientNitro India

The 10% long format ads that work are conceived, written and directed to do justice to the duration and the space. The Fortune Oil’s Daddi ad, Nestle’s stammering standup comedian and cartoonist ads, Lifebuoy’s Gundappa, Google’s reunion, British Airways’ ticket to visit mum, Skymet weather’s help the farmer initiative and the likes are some that prove this point beyond doubt; and that content on the internet should be less aspirational and more authentic. There is this Wagh Bakri Tea ad that tells the story of a wife who leaves her husband, he realizes her worth and then reaches out to get her back in his life; I love the video but the last 1.5 minutes of the 4 minutes video is spent on the clichéd pack shots, underwater shots of tea leafs in boiling water which obstructs the storytelling. I so wished they stayed away from those typical TVC type shots.

khali

Ambuja Cement’s Khali campaign by Publicis India

It’s time we realise the fundamental difference of the audiences in this space and the possibility that it offers. The audiences here are active unlike the passive audiences sitting in front of the TV set, here they can engage with the purpose, with the brand. They can comment, join the purpose, create more content; hence we should invite them to engage and make them a part of the story, help them contribute. Like the way a Lifebuoy’s Chamki does, it picks a real life story of one family, gives out a larger message and asks the viewers spread the message ‘Help a child reach 5’.

There are some myths prevalent in this space like long format ads costs nothing, but for anything to go viral you need to have a reach till it gains traction and there after it’s the content that will help you take off. The next myth is that length is not an issue in the internet space, but the reality is that maximum people drop off after 15-20 seconds which will count as your hits but they haven’t seen your story, so better aim for depth of engagement.

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Nestle India’s ” Fauja Singh’s #100AndRunning  online campaign by SapientNiro India

To sum up we should work on the Inspire , Interact , Amplify framework. We are still to amplify the internet space to its fullest, for starters we can enable viewers to just click on products they see in the video, donate for the cause, interact with the people they see etc Eg DBS ChilliPaneer. For instance you can even link to e-commerce by interacting either by a click or drag the room they see in an online furniture store into the shopping cart, which should then break it into all the products shown and the viewer can then add or less items and then transact. All these and much more can be done in this space but it all starts with a relevant story that is well told.

*This Article was published earlier in an online publication.

When you witness Tendulkar getting out along with Waqar Younis, Shaun Pollack, Stephen Fleming and Carl Hooper…


One of the perks of being in advertising is to be privy to some of the most intimate moments of the history; in retrospective I recollect one, as Sachin is hanging his boots in few days I owe it to myself to narrate this amazing event to the world. It was in 2002, while working on a world cup cricket campaign for LG electronics; I was shooting 36-television commercials at a breakneck speed for the world cup in South Africa. LG tied-up with ICC as the primary sponsor and was allowed by ICC to use all participating 14 team captains for publicity hence the campaign with 14 captains ( “Cricket first” was the campaign theme), we got the time for shoot allotted by ICC in Colombo Sri Lanka whist the ICC champions trophy being played in that country. We had around 6 days to shoot all 14 captains, were allowed a couple of hours a day with out upsetting the team schedules.

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We parked ourselves at the Hilton Colombo and marked several locations in the hotel for shooting different commercials to save time, one such location was the penthouse suite; One of the days when we were set to shoot the combinations with Nasser Hussain, Waqar Younis, Shaun Pollack, Stephen Fleming and Carl Hooper, while Nasser Hussain was getting ready for his shot, I was watching India playing Zimbabwe in one of the bedrooms sitting in center of the bed, soon I was joined by the legendary bowling captains, Waqar, Pollack, Flaming and Hooper.

Soon the bowlers were glued to the TV watching the Indian “God” batting, I still remember the mesmerizing site of four bowlers watching master batsman Sachin bat,  like little kids seeing an instructor play. I was pinching myself for what I was witnessing and then all hell broke loose as Sachin gets out cheaply to Heath Streak or Henry Olongo, In unison you see all four raising hands in air and say “Shit” with utmost disgust and argue amongst themselves about, how unfair the life is; while Pollack says “ we all are always asked to bowl straight and we follow that religiously and look at this bloke bowling wide outside the off stump and the master decides to ignore all his discipline and reaches the ball to give a catching practice to the second slip.” “Why does this bowler gets “Masters” wicket so easily? And why do we have to slog for days to get him?” adds Waqar.

I can never forget how lucky I was to see the greatest bowlers of all time discussing about Sachin’s batting and putting the kind of importance to his wicket in their life is simply amazing, bowlers around the world practice relentlessly for months and years to get him out is a testimony to his greatness and being a witness to such an event makes my 34 years of advertising career worth the while.

Create. Collaborate and Compete.


 

Advertising has become more complex today then ever before, there was a time when all channels of communications were controlled by advertising agencies but today advertising has gone through a significant change today we have more then two dozen specialist agencies specialized from creative planning to digital executions. Apart from loads of channels to communicate to the consumers have changed, people themselves have changed.

A recent study published in Times of India points the average age of the consumer had dropped dramatically, for instance an average car buyers age had come down from 45 to below 30. This change not only affects the target for marketing but it also changes the media planning. Hence one needs to look at the content of communication in the context of message consumption therefore it is extremely important for the communication content creators to understand the contextual targeting. The moral of this story is if the creative and media planning or digital planning agencies do not collaborate then how the hell are they going to create a relevant campaign?

 

 

 

In this ever-evolving complex world everything is linked to everything and not everyone can be experts in everything. Super specializations are hear to stay and the intelligence lies in learning from each other and working as a team even if the team you are supposed to work with, belongs to a competing holding company. If a creative agency can collaborate with a film production company, which also works with competing agencies can happen with out any hesitation, then why not collaborate with another competing small agency on a project in the interest of a brand?

Bigger and traditional creative agencies can learn a thing or two from modern design companies which have learned to co-create and collaborate with technology companies for starters take a look at the design winners from Cannes this year. Small and nimble agencies have realized this early enough and are raking in now. Now it’s the turn of the biggies.

We all are witnessing the results of coalition government with out any collaboration. I urge all the communications channels to come together and get to learn from each other and march ahead into the new age communication era.

After all the solo sulking days have gone, as my friend Agnello puts it “jo tera hai wo mera hai”,

 

 

 

Gandhi vs. Anna.


Anna is a simple man, so was Gandhi.

Anna started by changing himself and then his village so did Gandhi.

Anna preaches non-violence, so has Gandhi.

Anna is a stubborn man, so was Gandhi.

Anna rallied young India, so did Gandhi.

Unfortunately the comparisons stop here.

Anna is a Gandhian but not a Gandhi. I respect Anna for his honesty, simplicity, his stubbornness, intent and his peaceful methods. Leaders are always born out of adversity, when India is going through her worst leadership integrity crisis, Anna took upon himself to rally people against corrupt politics and society, a simple, quite Gandhian turned into an agent of people’s conscience.

Anna’s success came because of young India taking to streets, a movement fueled by anger and helplessness of young men and women, who silently witnessed the powerful leaders and businessmen shamelessly looting their treasury.

When corruption reached parliament, when policemen started to rape and molest little girls, when army men stoop to steal wealth, when politicians blatantly amass disproportionate wealth, When educated entrepreneurs cook-up account books, when Baba’s hide rooms full of gold and silver and when temple incomes bulge more then a state’s. You know it’s only a matter of time for a catharsis and indeed Anna became the fountainhead of this revolt.

After Jaiprakash Narayan no other leader mustered as much support as Anna. Jaiprakash Narayan succeeded in changing the government because he supported a newly formed cleaner party with leaders of intent and integrity. The agenda before the nation was clear: vote out the Nazist congress party, people understood and implemented. When people empathize with issues they need an action point and Jaiprakash Narayan provided one.

Mahatma Gandhi too understands this human truth like any other successful leaders in the history, Gandhi always gave an action point, be it making salt or burning British made cloths or asking the mighty British to “Quite India”. Any mass movement should have an actionable end. Even the recent “Occupy Wall Street” had a definitive action point to just occupy Wall Street. Simple enough for people to understand and execute.

Anna should go beyond appealing to people to come onto the streets to protest. He must give an action point, if one were to say “ Vote for Lokpal or Quit parliament” and if one were to give the agenda of pushing every local MP to vote or resign, there would have been an action plan for restless young Indians to execute.

I believe Anna will become a true heir of Gandhiji, if he becomes as shrewd thinker and as clear visionary as Mahatma is.

Power shifts in advertising.


The recent ranking of the most influential people by Brand Equity raised eyebrows and sent shockwaves thru the ranks of the industry. The veteran blackberry boys were giving way to apple tribes.

Two decades back armed with management degrees from the top institutes the double-breasted blue blazer brigade took firm control of the business from the erstwhile “angrezi hangover babu’s” of the post independent India. And the blazer brigade were the most powerful lot as they controlled the business of the businesses by working as strategic and marketing extensions of huge corporations.

What made this successful brigade to take a back seat? Why the suits were marginalized? What made creative guys to rise?

Well the answer lies partly in the changing business model and partly in the egoist reluctant to change CEO’s.  Why do I blame them?  Three decades ago when I started work in advertising as an untrained commercial artist, stumbled upon a book in a second hand bookstore titled  “12 benevolent dictators of advertising” the book dealt with how the legends of the industry were thrown out of their own shops unceremoniously.

And the moral of the story being: ownership does not give power, real power in advertising is the influence you have on the Brands business and how indispensible you become to the biggest brands of the agency. Most often the owners and the MBA managers mistake power to money control and designations therefore they spend all the time in managing money and holding control meeting. Before they even realize the power starts to shift to enterprising business heads or creative heads.

Its not surprising to see some of the legendary CEO’s being marginalized post de-bundling of creative agencies. When you had 15 channels to manage a general manager was more powerful today there is just creative and only products to be managed are Ideas.

With INS accreditation out of the window and monthly remuneration system is in, there is hardly any complex management is needed therefore more creatives are taking charge to manage ideas and agencies.

Hope one day the management schools will add this section of Idea management to their curriculum.