MAM

Local brands would hold their own

NEW DELHI: With increasing number of international brands entering the Indian market, one aspect of worry is the survival of local brands in a market where competitive prices and quality products hold top priority.

 

 

However with this, local brands will definitely up their ante to survive, learn from the competitors and prosper, which is a good thing, pointed out Espirit Asia regional director Peter Hammond at the KSA Retail Summit here yesterday (Thursday).

Hammond said that India has the largest single country retail opportunity in the next decade as the local market has rapidly developed western tastes.

"India is the second largest country to achieve global growth at 8.2 per cent in 2003. The median age of people here is 24 years, wherein 400 million people are between the age of 20-49 years and the country is expected to double its GDP in the next 10 years. Apart from that, credit cards holders are expected to triple by 2008. However, the challenge is that the retail sector is highly disorganized in India and the import duties are restrictive. Also the middle market price points are 50 per cent lower than that of Europe," he said.

Drawing parallels between the Indian and Chinese markets, he said that 10 years ago China's retail sector too was unorganized with few shopping malls and high import restrictions. The middle class was also minimal wherein only 1 million people out of 1 billion were able to afford Espirit.

 

 

According to Hammond, the two countries are similar in the following areas:

1. Population

2. Actively embracing globalization

3. 100+ cities

4. Extensive local brand presence

5. Change in government direction towards economic growth

6. Extraordinary plans for retail infrastructure development

7. Restrictive local tax system

8. Conflict and stable economies for the last 50 years

The differences between the two countries can be outlined as

China

India

Communist embracing capitalism controls for brands    Democratic and capitalistic so restrictions to growth is minimal

Began from a 'culturally natural' position    Large and diverse segment of middle class population but low average income

Very few Chinese traveled abroad prior to the 1990s    Many Indians live abroad and have also come back to the country

 

China India

Communist embracing capitalism controls for brands Democratic and capitalistic so restrictions to growth is minimal

Began from a 'culturally natural' position Large and diverse segment of middle class population but low average income

Very few Chinese traveled abroad prior to the 1990s Many Indians live abroad and have also come back to the country

Looking at the above table, it is obvious that India has more potential than China to grow if the opportunity is tapped properly.

"At Esprit, our strategy is to look at the consumer of tomorrow and not the consumer of today and therefore focus on our brands and not on sales. If we have a good brand, sales will follow," Hammond said.

Cautioning companies who are looking to enter an international market, he said that companies should never localize their brands to suit the market that they were looking to enter.

"Don't compromise your international success recipe and don't build footfalls by compromising the price factor," he warned.

 

 

In a geographically large markets like India and China, where one part of the country may be really cold and the other may be warm, companies should keep in mind the seasonality and accordingly place their brands.

"Don't compromise on your international portfolio for short term sales. Also, don't decide for your customer, let the customer decide for himself," he said.

Hammond said that Espirit's advertising and promotional campaign was the same in all the markets that it had a presence in. "Our mission statement is that we are an international youthful lifestyle brand offering smart luxury, bringing newness and style to life," he said.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/pretty.jpg?itok=k3d6mOBR
Fogg maker takes on fairness creams with Pretty24

Taking a stab at fairness creams’ perennial message of fair skin being the benchmark beauty and success, Fogg deodorant maker Vini Cosmetics (Vini) is touting the idea that every shade of skin is equally beautiful. The company has been plugging the primetime of mainline television channels for the...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/brain.jpg?itok=kT6QQo-H
55% marketers make better decisions with machine learning: iProspect report

MUMBAI: Digital agency iProspect has released its third annual Future Focus whitepaper geared to examine how machines and technology are impacting marketing and advertising in the year ahead. The paper takes a look at how brands can make the most of machines in 2018, from facilitating seamless...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/PAISABAZAAR.jpg?itok=F6V0tnEn
Paisabazaar aims Rs 1500 cr mutual fund AUM by 2018

MUMBAI: Paisabazaar has announced that assets under management (AUMs) garnered through its mutual funds products crossed Rs 1000 crore mark last month. The organisation says it is confident of reaching Rs 1500 crore of AUM by March 2018. The fin-tech company launched mutual funds on its platform...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/Blackberrys-AW_0.jpg?itok=0mzgSZY0
Blackberrys gives digital mandate to FoxyMoron

MUMBAI: Menswear fashion brand Blackberrys has assigned its digital mandate to FoxyMoron after a multi-agency pitch. The account will be managed from the agency's north office. As per the mandate, FoxyMoron will be managing the digital creative, media, search engine optimisation as well as website...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/Anushka-sharma.jpg?itok=x423bbje
Kajaria Ceramics launches campaign with Anushka Sharma

MUMBAI: Kajaria Ceramics through its subsidiary Kajaria Bathware has launched a 360-degree marketing campaign with Anushka Sharma who was recently announced as the brand ambassador. By investing in this marketing campaign and an extensive distribution network Kerovit, the bath solutions brand by...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/grnnnply.jpg?itok=r7doZ2jY
Greenply questions your plywood choice

MUMBAI: Greenply has launched its new campaign to make consumers aware that there are consequences of compromising on the quality of plywood used in their furniture.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/yannic.jpg?itok=pWYoYT0q
NBA partners Jabong to operate official online store

The National Basketball Association (NBA) and Jabong, India’s fashion and lifestyle e-commerce platform – today announced a multiyear partnership extension that will provide fans access to authentic NBA merchandise in more than 730 cities across India.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/Maaza_Gold_0.jpg?itok=xz_AR_Ph
Coca-Cola launches Maaza Gold

MUMBAI: Coca-Cola India has announced the launch of 'Maaza Gold', a premium mango drink made from the choicest of mangoes.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/Cipla.jpg?itok=2lTgIAb-
Cipla launches TVC for ActivKids Immuno Boosters

MUMBAI: Mothers’ concern for their children’s health goes to the extent of restricting them from indulging at times. Capturing one of these many concerns, Cipla has released a new TVC for its kids' immunity supplement ActivKids Immuno Boosters.

MAM Marketing MAM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories