Electrical brands supercharge digital marketing this festive season
The category spends anywhere between 25% and 30% on marketing in Q3
Despite logistical challenges and Covid-19 impact, top consumer electronics brands are positive about a robust festive season 2021. The makers of electrical products and lighting solutions, in fact, are set to increase their marketing budgets for the quarter to catch the attention of buyers who are willing to invest in upgrading their own spaces or are looking forward to gifting something different this season. exchange4media interacts with some of the leading brands in the space to see how they are expecting the festive season to shape up for them.
Time for Maximum Consumer Activity
Usually, the category witnesses anywhere between 30-50% of their overall sales in the festive quarters, as per industry experts. And this year too, the brands are quite positive about reaching those numbers, irrespective of pandemic-induced challenges. However, the category experts believe that it's hardly a case of revenge buying since sales spike slightly during the festive season. Several other categories in the space -- like lifestyle and appliances -- will be expecting this season.
Godrej Security Solutions Vice President Mehernosh Pithawalla notes: “With Covid-related restrictions having eased, consumers have gradually begun spending once again, thereby boosting demand. The ongoing festive season provides us with a great opportunity to propagate the concept of gifting the promise of health and security to consumers, across the country. The overall sentiment towards the festive season looks quite positive among consumers across metro cities as well as tier 2 and tier 3 towns.”
Jain, whose brand has recently entered the fans category too quips, “We expect high sales this season as we have a wide range of products in all the categories we are present in. After the low-key celebrations last year, we are likely to see a spike in demand. However, the electrical sector may not experience the revenge buying phenomenon since it has been easily accessible to the consumers even through the lockdown.”
Syska Group Executive Director Gurumukh Uttamchandani is also quite positive about the sales to pick up in the coming weeks, “Despite the fact that the Covid-19 outbreak initially created a huge roadblock for the consumer durables industry, we have high hopes that this year's festive season will help demand pick up once again.
"The stay-at-home orders altered people's perceptions of how they should live in their houses, necessitating them to rearrange their physical space and accommodate new functional requirements for working and learning from home.
"This shift has thus resulted in an increased demand for smart home products such as smart plugs, smart LED lights, etc. as well as mobile accessories such as power banks, earphones, Bluetooth speakers, headsets, and much more. Interestingly, mobile accessories are increasingly being purchased for the purpose of gifting and this phenomenon is here to stay.”
He adds, “Talking about the revenge buying phenomenon, consumers will surely indulge in revenge buying and this aspect of purchasing will be more prevalent in tier 2 and tier 3 towns owing to the easy availability of products through online and offline channels. A decade ago, a retail store would offer products only related to a particular business but in today’s time, if you go to a grocery store or a medical store, you might find a trimmer or a mobile accessory such as earphones. As consumer needs are evolving, retailers have revised their SKU strategy and marketers are placing their products across channels so as to offer ease of availability.”
Marketing spends spike
The brands, though cautious of the times, have increased their marketing spends this year as well to grab the attention of the consumers. The brands are not only sharpening their presence on online and offline platforms but also announcing several new offers and products.
Uttamchandani says, “We fundamentally operate with 3-4% as our marketing budgets, which are optimally used to achieve the functional objectives across different segments such as LED, personal care appliances, mobile accessories, and more. With the festive season, we will continue to closely monitor the purchase pattern on each medium and engage with our consumers, by consistently providing innovative products and solutions across all the industry segments we cater to. In order to promote higher sales, we also plan to present combo deals and unique discounts through our D2C channel.”
He further adds that sales and offers, which have been a quite common phenomenon during the pandemic especially on e-commerce platforms, will be continued by the brand in the festive season too. “Syska recently concluded the ‘God of Sales’ offer, with an aim to create a larger connection with our customers. We plan to continue to provide various discounts and offers throughout the festive season. As gifting is an indispensable factor of the festive season, we plan to provide combo offers with value offerings and products within an affordability mindset in order to stimulate larger sales.”
Pithawalla is moving slightly more carefully this festive season and is placing his bets on the digital platforms to deliver desired results this festive season. “Keeping the uncertainties in mind, we at Godrej Security Solutions have strategically focused our festive spends and touchpoints towards digital promotions as on-ground interactions and free movement is still restrictive in some regions. We are thus allocating 60% of spends on digital platforms and the rest 40% for on-ground activations. With digital media being the key focus this festive season, we plan to go all out by reaching out to our target audiences through all possible social media and OTT platforms such as Instagram, Facebook, YouTube, Hotstar, YouTube Banners, MX player etc. Further, our on-ground branding will be implemented at various retail outlets, through hoardings as well as placing advertisements in print, TV and radio.”
Goldmeal Electricals is going to launch new products in the LEDs, fans and switches segment in the forthcoming months and has a high-decibel marketing presence, led by digital, planned for itself. Director Kishan Jain shares, “Festival seasons do see an uptick in sales and we allocate slightly higher spends that are in the range of 25%-30% of our marketing budget during these few months of the festive season. Our overall strategy has been to use video content to communicate our message during the festive season. Our focus is on the digital space.”
Overall, the category is placing its bet on digital media for marketing and is expecting a robust festive season with spiked sales.
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