exchange4media.com and Strategy Group, the Analytical Arm of TAM Media Research, jointly bring you a weekly column 'S-Group Insights' on Advertising Trends of different Product Categories. This column will be published every Tuesday and aims to aid advertisers, and media agencies understand changes in Media Consumption patterns leading to Scientific Advertising Investments. In the current column, we take a look at Clothing, Textile and Fashion as a category.
Retail Industry contributes to over 10 per cent of India's GDP. With increasing income, urbanisation and attitudinal shifts, Retail Industry, which now in 2015 is at $ 600 billion, is expected to grow to $ 1 trillion by 2020. According to KPMG Report, Organized Retail penetration as of 2015 is 92 per cent. With Retail spending of Rs 3.58 trillion in the top seven cities in India, it is recognised as a very fast-paced industry in India. India is expected to become the world’s fastest growing e-commerce market, driven by high investment in the sector and rapid increase in the number of internet users. Online retail is expected to be at par with the physical stores in the next five years. It will be interesting to see how physical retailers devise their advertisement strategies to counter their online competitors.
According to TAM AdEx data, in 2014, Retail advertisers contributed to 4.7 per cent, 0.9 per cent and 6.1 per cent of advertising across Print, TV and Radio, respectively. Retail as a category consists of product groups like Clothing, Textile, Fashion, Electronics, Durables, Departmental Stores, Home, Interiors, Furniture, Food, Optical, Automobiles, Footwear, Stationery, Gift Articles, Kids, Fitness, Sports and Industrial/B2B.
Retail, due to its very nature, is advertised majorly on Print as it more important to have a local coverage rather than a mass or a national coverage. Even big players like Future Group, Reliance Retail try to be nationally local. As a result retailers advertise heavily on Print media which is said to have best local coverage.
As seen, the number of advertisers on TV is lower as compared to that of Print and Radio but they use comparatively more channels and also the ad volume is high.
Taking a look at the ad pattern of Retail advertisers on TV, it is seen that 65 per cent of advertisements are concentrated towards the South regional market. News and Music are the most preferred genres by retailers to advertise in the South Indian markets. Hindi channels hold a meagre 7 per cent of retails ads.
Now if we consider the various product groups In Retail, Clothing/Textiles/Fashion is the most advertised product group on all the three mediums. Taking a look at the advertisers in this product group, Future Lifestyle Fashion, Future Retail Ltd., Reliance Retail Ltd., Kalaniketan ( A.P.), Shoppers Stop are the top advertisers on Print. With a share of voice of 10 per cent in 2014 on TV among clothing retailers, Joy Alukkas Group have been seen increasing their advertisements significantly for the past two years. Kalyan Group and Kalyan Silk Sarees who once used to be the top advertisers on TV, have significantly reduced their advertisements in 2014. Lifestyle Intl Pvt. Ltd. which is the highest advertiser in 2015 so far in the Clothing/Textile/Fashion Retail category has been gradually increasing its advertising on Radio over the years. Shopper Stop has increased its advertisements heavily on Radio in 2015.
The second major Product Group in Retail is the Departmental Store. Although the overall ad duration on TV by retailers has been reducing year on year, it is seen that ads by departmental store's advertisers have been increasing. With 65 per cent of Share Of Voice, Future Retail is the sole driver in this product group on TV.
In recent years, penetration of online players has increased significantly. From startups to major international online players, all of them have started catering to all possible retail services at the convenience of the consumer. As a result, we see that e-commerce has aggressively started advertising on Print post 2013 and has steady growth as compared to the retail outlets. This would make the competition between physical and online retailers intense, as print is the most preferred medium of advertising for retailers especially in the clothing category.
Over the past two years we see the advent of many new advertisers who have very strategically used various platforms to communicate to their customers. We also see many regional retailers especially in South Indian markets who advertise locally more than the national level retailers. Print being the most strategic medium for advertisement for retailers, more than 80 per cent of advertising is done on it. Organised retail sector in India is increasing rapidly (10 per cent in 2015) and so are the advertisements by it. Retail giants like Future Retail, Reliance Retail and such others have already dominated in the first two quarters of 2015. Advertisements from retail product groups like Home Interiors and Food have also increased post 2013, especially on Print. Today with the e-commerce giants swiftly eating up the traditional retail business it would be very interesting to watch how retailers bring about a change in their advertising patterns to survive and succeed in this highly competitive industry.