Syska records 125% growth in festive sales on e-commerce platforms: Rajesh Uttamchandani
Rajesh Uttamchandani, Director, Syska Group, talks about the company's e-commerce sales record this festive season, marketing spends, target audience, and rapidly growing FMEG industry
Illuminating thousands of homes this Diwali, lighting solution brand Syska had recorded festive sales growth for the year. Driven by online sales Syska has recorded sales growth touching an all-time high of 300% this year.
In a chat with exchange4media, Rajesh Uttamchandani, Director, Syska Group talks about the company's sales performance this festive season. He also speaks about Syska's marketing spends, target audience, and rapidly growing FMEG industry.
"We have seen impressive growth this festive season, with Syska’s sales on e-commerce platforms touching 125% across all of our product categories," reveals Uttamchandani.
He said, this festive season, one of the most successful categories has been personal care & LED lighting. The introduction of smart lighting solutions has been a game-changer, with sales growth touching a high of 300% this year.
Interestingly, the FMEG industry is growing in Tier II and Tier III markets as well. When asked about Syska's growth in Tier II & Tier III towns, Uttamchandani said, "There have been a significant number of customers from Tier II and Tier III markets who are actively using online platforms to purchase products for their festive needs. With Christmas being a little more than a month away, we believe this would provide a fillip to our overall sales volume, as more and more consumers take the digital route for their daily requirements."
According to Uttamchandani, one of the main factors for this uptick in sales has been the company's efforts in trying to ensure stock availability across fulfilment centres in the country.
When asked about the overall growth of FMEG industry, he said, the growth potential of this segment is huge.
"This year we have seen decent growth in the Indian FMEG market, as consumers are becoming more aware of environmental sustainability. This has also resulted in greater consumer adoption of LED lighting and other energy-efficient products & solutions. Additionally, we expect the electrical industry to perform even better in FY’20 owing to growing demand. As the FMEG industry grows at a healthy pace of more than CAGR of 13%," Uttamchandani explains.
Given the fact that the Indian economy is facing a downfall, Uttamchandani said, "We will continue to chase and achieve the Y-o-Y growth of minimum 25-30%."
While there has been a hype about a recession in the country, Uttamchandani reveals, "Syska is not seeing a recession affecting its business in any way. Syska has been growing consistently year-on-year along with the rest of the FMEG industry."
"Additionally, Finance Minister Nirmala Sitharaman has recently undertaken a slew of measures to boost the economy such as setting up a task force to ensure that infrastructure projects can be funded quickly. This will help in increasing capital expenditure that will aid in the promotion of energy-efficient solutions such as LED lighting. It will provide a much-needed fillip to manufacturing companies and contribute towards the overall growth of the economy," Uttamchandani explains further.
Speaking about Syska's marketing budget, Uttamchandani said, "Syska operates with 3-4% marketing budgets, which is optimally used to achieve the functional objectives across different segments like LED, personal care appliances, wires and cables, mobile accessories etc wherein Syska as a brand is present catering to pan-India consumers. Our target audience includes millennials and GenZ audience who look for innovative products that make a positive difference in their lives. Right now, Syska has more than 2 lakh consumers countrywide."
Across the years, the brand has consciously communicated the core thought of “saving” using different expressions through different marketing mediums. The brand uses a strategic mix of TV, OOH, Digital etc to create the desired equity and convey the proposition for both offline and online customers.
Through Irrfan Khan, we aim to reinforce the message of Syska being the pioneers of LED lighting segment in the country, said Uttamchandani.
What makes Khan the best choice for Syska LED? Khan has been Syska’s brand ambassador and voice of the company since its inception. His honest-to-goodness persona and matter-of-fact demeanour are qualities that resonate with Syska’s own belief of offering genuine high-quality products that are reliable and affordable, Uttamchandani explained.
Talking about Syska's successful collaboration with The Kapil Sharma Show, Uttamchandani said, "It is a light-hearted show which has become a household name with a fan following across age groups, from baby boomers to Gen Z. Similarly, Syska is also a household brand with a diverse and innovative product portfolio that caters to multiple age groups."
Based on the huge response received towards the company's brand-integration strategy, Uttamchandani explains, "We extended the thought on other popular programs like “Chalahawayeudya” on Zee Marathi and “KalakkaPovathuYaaru” on Vijay TV, thereby enhancing the customer engagement not only in HSM markets but also other regional geographies. Audience members and winners were gratified by the brand that illuminates homes with Syska LED lights."
Uttamchandani shared Syska's plans for 2020 saying, "We are rapidly expanding and introducing new and innovative products under all of our business segments to include LED lighting, personal care appliances, mobile accessories, smart home appliances, and wires & cables. We will continue to do the same."
"In all of these product segments, we have always been known for our path-breaking innovation. We will continue to introduce innovative products and solutions that will benefit the ever-evolving needs of our customers. We will be launching new products in the switches, MCB and RCB categories in the next financial year," Uttamchandani concludes.
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