Festive spirit: Jewellery & textile brands expect 20-35% revenue growth
Most brands have increased their advertising spend by 20-50% and have launched campaigns across media to attract customers
Published - 23-October-2018
Diwali is around the corner and brands across the country are bracing for the festivities. With Onam, which marks the start of the festive season in the country, being washed away in Kerala floods, brands are now pinning their hopes on the festival of lights. Jewellery industry expects 20-30 per cent revenue growth, while textile brands across the country are expecting a revenue growth of 20-35 per cent during Dhanteras and Diwali this year compared to last year.
Inventories blocked in advance
According to industry experts, most brands increase their advertising spend by 20-50 per cent for the Diwali season. As per an industry expert, jewellery and textile brands in the country are highly confident and have high expectations from the festive season. Most of the inventories are blocked in prior and almost all major textile and jewellery brands have launched campaigns across media and are handing out huge discounts and offers to customers.
Gold price on Monday morning was Rs 30,950 per 10gms, a little less than the cost on Sunday morning. India being the second biggest consumer of gold, jewellery brand owners are expecting good demands for both gold and diamond ornaments in the Diwali season. Most brands are offering 5-20 per cent discounts on products and making charges.
Malabar Gold and Diamonds too is all set for the festive season. They are showcasing Diwali special designs to suite all tastes.
Speaking to exchange4media, MP Ahammed, Chairman, Malabar Group, said, “Diwali and Dussehra are the biggest festivals in the country and for Indians across the Gulf countries. Around 20 per cent of annual advertising budget is used in this season.”
Talking on their revenue growth expectations, Ahammed said, “We expect 20 per cent growth over last year. We are offering one gold coin for purchase of gold worth Rs10,000 and two gold coins for purchase of diamond worth Rs10,000. Moreover, we will showcase Diwali special designs to suit local taste.”
Similarly, jewellery division of Titan is completely geared up to celebrate Diwali. They have introduced a new collection named Utsava.
“Jewellery is an integral part of every celebration in the country. And this ensures that Tanishq beautifully fits in with each and every festivity. Needless to say, the Dhanteras and Diwali festivities are extremely important and therefore they attract significant investment to ensure we have appropriate products and we roll out enough engagement initiatives that will help us create top-of-the-mind recall for our consumers,” said Deepika Tewari, AVP - Marketing, Titan Jewellery Division.
Tiwari said that the festive season is a critical period for the brand and they are expecting significant growth this year as well.
Elaborating on the major marketing and advertising strategies by Tanishq during the festive season, Tiwari said, “We have introduced ‘Utsava’, an enchanting collection that showcases the rich culture and beauty of our country, encapsulating the true essence of the festival of lights. The modern Indian woman today is continually on the lookout for new designs and elements to compliment her look, but never fully forgets the beauty of heritage and tradition. To celebrate this, Tanishq has come out with the new collection which is a beautiful fusion of modern and traditional. This collection consists of statement pieces that bring about an edginess and style with delicate craftsmanship. Deepika Padukone has worked closely with the brand to create some amazing festive shots and looks with the intricate pieces from Utsava.”
Tanishq has also launched a new campaign as part of their festive consumer outreach that celebrates both the diversity and the rich culture of India.
“Conceptualised by Lowe Lintas, the film showcases the different and unique cultures of our country and highlights the fact that no matter which state they come from and the language they speak, everyone comes together to celebrate the wonderful festival of Diwali,” added Tiwari.
Online jewellery brand Melorra is expecting over 35 per cent growth this festive season.
“We particularly expect to see a big spike on Dhanteras as we have seen in the previous year,” says Meera Iyer, Head of Marketing Melorra.
“We are using a mix of digital videos, physical catalogue mailers, great festive offers sitewide & PR to promote our merchandise this festive season. We are targeting customers on digital to get the best ROI on marketing spends,” said Iyer, elaborating on their marketing and advertising strategy.
Mega sale by e-commerce sites affecting the textile industry?
According to an industry veteran, textile industry has gone more aggressive in terms of advertisement and marketing compared to previous years. This is due to the high-end competition they face from e-commerce players in the country. The first round of online festive season sales got over last week.
“Normally, a textile brand’s spending on advertising across media could be 20 to 30 per cent higher or lesser to its previous year’s spent value,” observes a spokesperson of AV7 Medias, the media manager of Chennai Silks.
According to the spokesperson, Chennai Silks expects a huge growth in terms of revenue this year. For advertising, they are focusing more on electronic and OOH media.
“Based on our experience, I can say that the festive season usually sees a spike in ad investments. Brands invest almost 30-35 per cent of their yearly budgets in this period,” said Sivakumar, MD, RmKV Silks Pvt Ltd.
RmKV is expecting a revenue growth of 20-25 per cent compared to the previous year. The brand debuted at Lakme Fashion Week Winter Fall 2018 and is showcasing the LFW saris to customers as part of its marketing and communication strategy for festive season.
“We are quite bullish this festive season. As per our estimation, we should see about 20-25 per cent growth this year as compared to the previous year since the festive season is also seeing muhurt buying,” said Sivakumar.
Speaking about RmKV’s strategies for the festive season, Sivakumar said, “RmKV is known for handwoven silk and the brand launches innovative silk saris every festive season. This year, we debuted at Lakme Fashion Week Winter Fall 2018 and showcased 25 of our different innovations in the sphere of colours, fabrics and designs.”
“We are showcasing the LFW saris as part of our marketing and communication strategy to our customers. We are also investing in digital media and on social media platforms to target the youth using a mix of organic and inorganic efforts,” added Sivakumar.
“As a brand, we have learnt the nuances of each region and have customised our products as per the customer feedback in each region,” concluded Sivakumar.
(With inputs from Dolly Mahayan)For more updates, subscribe to exchange4media's WhatsApp Channel- https://bit.ly/2QUdLCK