Indian customers squeezed their expenses; marketers also have cut down their advertising expenses. Generally, during the festive season or around that time, marketers raise their ad spends. But this time, Marketers planned more cautious approaches for ad campaigns. As per the industry estimates, there would be a 10% to 15% sales drop during this monsoon season than last year.
Among top Retailers, Lifestyle International mentioned on overall chances for growth as neutral. Vasanth Kumar, MD of Lifestyle International Pvt. Ltd. told that Festive seasons could result in a 3 per cent out of turnover as Ad spend. This year, there are no plans to raise the budget. The existing state of the economy. More, we will have to watch out if Demand picks up as per our expectations during this festive season.”
He also said, “Consumer durability has been descent. Besides, Sales dipped between 10% to 15% between July to August, this year when compared to the same season last year.”
Nilesh Gupta, the Managing Partner of Vijay Sales, said, “The Demand remained soft consistently. Even ICC Cricket World Cup didn’t boost the TV sales.”
In this scenario, the truth is that the last year there were too many shopping malls & Centers which grabbed more sales. More, the replicas of the branded items added sales to others than the established brands.
Nilesh Gupta mentioned his expectations on sales to improve with 8% to 10% during the festive season than last year.
Nilesh Gupta added saying, “Both brands, retailers have more immeasurable chances to push more ads due to the cheaper rates. This possibility implies the growth of ads, even as ad spends remain steady. Brands may get more generous space in print media along with TV and streaming platforms.”
A recent report by MediaCom indicated that there would be a slow down in festive ad spends which is expected to grow over 10% to 12% than 2018, i.e., by Rs. 20,000 crores in this festive season.
Anil Talreja, a partner at Deloitte, mentioned that the sales did not raise, and brands have been struggling this from the last few quarters.
Meantime, Croma, electronic goods retailer run by the Tata group-owned Infiniti Retail has a plan to increase its ad spends on its new store launches. Ritesh Ghoshal, chief marketing officer of Infiniti Retail, said, “The overall spends will be more as there are 37 added stores this year than the previous year. At present, 137 stores are now operational across the country. Previous year we had 100 stores.”
Besides, Kavindra Mishra, CEO and MD of Pepe Jeans India said that the company has set out a big festive season ad campaign plan. That’s with ad spends more than the ad spends of the last year.
Mansi Gupta, CEO and co-founder of Tjori, said, “This year we will be spending more than double the amount we spent last year on digital advertising. The higher spend is on a different mix of categories and channels compared to last year. Last festive season, we spent mostly on keyword ads and displayed ads on social media.”
As companies gear up for the festive season, it is the consumer who will benefit this year, thanks to raining discounts.