trends

January 4 2021

Top 8 Retail trends to dominate 2021.

Retail trends 2021- Your guide to navigating 2021.

As we say adieu to one of the toughest years for the retail sector i.e. 2020; one question is on everyone’s mind i.e. What are the retail trends in 2021? How 2021 will be for the retail business?

The answer is simple, if you as a retail business owner are forward-thinking, ready to adapt to new ways of doing business then you shall thrive.

But, in case you belong to the old school of thought wherein you keep repeating what brought you success in the past then you may start counting your days…

Yes, I am being very blunt in stating the same.

Always remember Darwin’s theory of survival.

The law is relevant even after 100s of years.

“It is not the biggest or strongest that survive any kind of apocalypse but only the one who is the most adaptable to change.”

The objective of my article is to highlight key insights and trends which can guide retail business owners and help them in giving some guiding reference so that they are better equipped & can drive retail transformations in their businesses.

What must retailers do to remain popular?

1) Retail trends 2021- Experiential retail

Gone are the days when the customers expect only product and service. Today millennials and mobile-savvy customers need “experience” along with the product & service.

We are in an “experience” economy.

Brands like Nike & Ikea are experimenting with smaller shop concepts but fused with more engagement activities using technology and Artificial intelligence to drive social engagement in their stores.

Watch Nike’s digital retail transformation

In the fragrance sector, niche brands are implementing engagement tools using technology within their displays.

Watch the display stand of a perfume brand “Min New York” at Bloomingdales Dubai mall.

To learn more about the gamification of retail, click here.

2) Retail Trends 2021– “One Retail”

One of the trends in 2021, the line between digitally native retailers and brick-and-mortar stalwarts will become blurred.

There is no eCommerce or e-tail or physical brick & mortar retail but it’s going to be the “ONE RETAIL”.

Brick & Mortar retail will adapt itself to different customer touch-points.

They shall expand their sales funnel instead of depending upon the mall’s feet-ins, they shall start their customers journey from the “search” intent itself online.

Driving brand awareness online & on social media and using it as a part of their “customer acquisition” strategies.

Engaging customers with their relevant content and forming their own communities digitally.

Content marketing will be the new Oil in the experiential economy.

3) Retail trends 2021 – Use of tech products & Augmented Reality

As per a Harvard business review study,

73% of shoppers switch from channel to channel when shopping.
AR can be used to “preview” items before committing to a purchase.
60% and 55% of furniture and clothing retailers, respectively, already use AR

As already mentioned, consumers no longer distinguish between online and offline shopping.

They may start shopping in one and checkout in either.

A Harvard Business Review report disclosed that 73% of shoppers used multiple channels to discover and buy products.

Needless to say, it is mandatory for retail brands to be present on all the channels that their customers are using.

Watch the video of an AR tool by an Indian e-tailer, Lenskart.com.

This video highlights the biggest change in consumer’s buying behavior i.e. today customers try the products and check for its social proof and based on the response (likes and comments), he/she buys the product.

Technology is going to be your best friend in 2021.

4) Retail trends – Sustainability will be the driving force.

The biggest lesson 2020, has taught us is that we need to take care of our planet, our resources, and our health by adapting our urban lifestyles towards a more sustainable future.

A study from Unilever highlights the changing stance of consumers in this aspect.

21% of consumers now report that they would prefer brands with an active environmental responsibility campaign.

Retailers who are fast enough to adapt to this trend either by replacing their packaging with sustainable materials or reusing recycled bags or even producing fashion clothes and shoes from the waste materials will be in a better position to face the challenges.

Learn more about sustainable fashion, click here.

5) Retail trends 2021 – Social commerce.

In 2020, nearly 41% of customers said they were currently shopping online for things they would normally buy in-store.

Today, retailing demands a seamless User experience and User interface (UX/UI).

We saw the emergence of platforms like TikTok collaborating with Shopify, enabling Shopify eCommerce platform retailers to sell on TikTok with buy buttons.

Facebook and Instagram also launched their “shop now” tabs.

It will boost sales for retailers to sell directly on Facebook and Instagram without going through the hassles of driving traffic onto their eCommerce websites.

I had previously written a detailed article on this topic, click here to learn more.

6) Retail trends – Digital native brands to open more physical stores.

Brands like Lenskart, Glossier, Warby parker all started as digitally native brands have ventured into physical retail. As a result, excelling in their overall sales also.

These brands have developed their digital communities and now servicing them through physical stores which are more on experience and engagement.

Take the opening of the first brick-and-mortar Amazon Fresh Grocery Store in September, for example.

The Amazon Fresh grocery store is a new grocery store designed from the ground up to offer a seamless grocery shopping experience, whether customers are shopping in-store or online.

How you can apply basic marketing principles in the digital world, to learn click here.

7) Retail trends – faster Last Mile Logistics.

It seems like customer expectations for shipping times are only getting faster.

First came 2-day via the rise of Amazon Prime, then next-day, then same-day.

And now, Walmart expanding its two-hour express delivery options.

PwC reports that 88% of consumers are willing to pay for same-day or faster delivery.

From Amazon’s Prime Air — which uses drone technology to deliver shopper’s orders in 30 minutes or less — to the rise of delivery robot startups, delivery is only getting faster.

As a result, Last mile logistics will see all the excitement and investments in 2021.

This sector is about to grow exponentially.

For example, Talabat, uber eats, swiggy are all expanding their delivery systems not only to cater to food delivery or restaurant sectors but are now even delivering groceries, perfumes, and cosmetics- all within 30 mins to 1-hour duration.

To learn more about last-mile logistics, click here.

8) What products will be trending in 2021?

Apparently, Voice search and gadgets like Alexa, Echo, Google Assistant, Google Home, will be at the forefront when it comes to products.

Retailers need to adapt to this emerging trend by optimizing their eCommerce sites and SEO to adapt to voice searches that will be happening on these gadgets like echo etc.

I hope this article will help my retail fraternity with insights on the trends that will be prevalent in 2021.

In case you need any clarifications, then you can reach out to me at riteshmohan@yahoo.com

About the author:

Ritesh Mohan is a passionate retail professional with over 20 years in the Retail sector, handling some of the biggest brands in the beauty, fashion, and fragrances retail & FMCG sector. He has been instrumental in the growth of some of the regional brands as well in the Middle East region. Ritesh specializes in Retail management, Product development, and Brand Management, Retail Operations, Sales Management, and Franchising & Business Management. He strongly believes in empowering business owners with his wisdom & experience of around two decades in the industry.

Ritesh can also be followed on Instagram as @mohanritesh & on Youtube as @riteshmohan

Buy a “ Simplifying retail” book for powering your retail careers & retail stores.

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September 14 2020

Retail Renaissance – Accelerating Retail’s New Normal

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What is the Retail Renaissance?

Post Covid19, as most of the sectors are gearing up for recovery mode, my article highlights the new era of a retail renaissance.

Retail is one of the sectors most affected by COVID-19 in both positive and negative ways.

There are sectors that are thriving in the current scenarios such as grocery shops, hypermarkets, pharmacies, food delivery aggregators, and e-commerce marketplaces.

It is a very busy time for these sectors.

As every coin has two sides, the flip side of covid19 on retail sectors such as fashion, beauty, and non- food sectors which are facing challenging times. And most of them are closing as well or filing for bankruptcies.

These turbulent times are giving birth to a new era in Retail.

I call it Retail evolution or Retail renaissance.

My article highlights the changes that one can expect in the future of retail as we all gear for economic recovery.

Retail renaissance – Covid19, no longer a health pandemic, its economic disruptor.

It has impacted the changes in the consumer’s behavior. Today consumers have got themselves accustomed to the convenience of shopping from their couches.

The emergence of the shift to online and digital shopping

Pre covid19 era, most of the retailers used to think that digital /eCommerce initiatives will take time to pick up since eCommerce trade was only 8% of the overall brick & mortar pie.

Fast forward to today, post covid19 era… digitization is no longer an option. It’s is a fact of life now.

Read 10 eCommerce growth hacks, click here.

Rise of the value for money brands.

The aftermath of any economic downturn is an increasing trend towards value for money brands across retail sectors.

This is already happening in essential categories, for example, when the pandemic occurred this March month, I recall spending dhs 140/- on a jar of 5litres of sanitizing gel.

As time progresses, more and more players in the market introduced their range of sanitizers, the price corrected itself and today, the same jar is now available for less than dhs 40/-.

That’s the perfect example of Product life cycle & market dynamics.

How will the Retail Renaissance look?

Ideas are the new currency for new era economies.

Amidst shop closures and bankruptcies, a new kind of retail is evolving.

The entry of Digital Native brands into physical retail formats.

While digital-native brands like Bonobos, Glossier, Casper, and Warby Parker started online, many are launching and expanding their physical presence.

alibaba

According to a study by a Real estate Company, digitally native brands are predicted to open 850 brick-and-mortar stores in the next 5 years, with New York being the most popular destination. (Study conducted in the US)

An example from our Indian ecosystem, Urban ladder, which started as a purely eCommerce site, today is creating experience centers in a couple of malls in India wherein they want their customers to engage, feel their furniture prior to purchasing.

Brick & mortar (B&C) brands are creating online channels to complement there physical ordering.

Example – Click & collect by Carrefour in Dubai.

Customers can purchase their groceries online and come to a mall’s parking facility having dedicated space counters for picking up your online orders.

Amazon GO concept is in line with this philosophy.

Watch the video here.

Experiential retail – the core of phygital (physical and digital) world.

Retailers are leveraging AR technology to bridge the gap between the digital and the physical.

Experiences have become the social currency of a new generation of consumers who have commemorated every meaningful life experience online.

Mega-brands like Target, Lowes, and Amazon have launched AR features that allow shoppers to picture furniture in their homes.

AR app of Ikea Place.

Read more on experiential retail in the beauty sector, click here.

Data-driven shopping enhancements

Amazon scout is an example wherein it uses machine learning to recommend specific products to shoppers based on their likes and dislikes & their shopping patterns on the digital space.

Currently still being tested, Scout provides recommendations in the categories of home furnishings, decor, and women’s shoes, with more categories coming soon.

Mergers & Acquisitions – forms the new normal in the Retail Renaissance.

The retail renaissance shall see more mergers and acquisitions, either like-for-like acquisitions, that is, the purchase of a direct competitor, who plays in the same categories.

The recent acquisition of Future group by Reliance Retail falls into this type of acquisition.

Or category or channel expansion, that is, buying into a new category or channel with the goal of improving growth exposure and/or broadening the product offering to the consumer.

Retail Renaissance offers a dual-edged sword to new era consumers.

They have to face new financial realities.

While their targeted millennials’ incomes have increased when compared to previous generations but their net wealth continues to trail.

So today retailers will have to serve consumers, who are well informed, more discerning but pressed with low incomes & higher debts.

It is going to be more challenging to entice such consumers and keep them engaged with brand stories and emotional & experiential connects.

If a retail concept that can address these concerns with their value for money proposition shall thrive in the coming years.

Retail Renaissance- New era retailers will empower their front-liners more.

Have you ever wondered why a neighborhood grocer is able to run his small shop more profitably than the major hypermarkets?

Many of you will say since the small shop owner operates on lower overheads that’s why he or she is far more profitable.

The above may hold true partially.

The main reason for the success is that he knows his customers face to face.

He understands his customers, their shopping behavior, and accordingly, he plans for his merchandise mix.

The Reason for success: Knowing your customers.

Big retailers miss this aspect as they get entangled into the processes & SOPs and hire research firms to find what their customer need.

There is a loss of key insight in the process.

New era retailers, will empower their front-liners more, push more power, autonomy, and decision-making back to the front lines.

They will create more information capture channels from the front lines to make an agile strategy for their brands.

Make your brand –purpose-driven & technology your BFF. (best friend forever).

I am not a huge fan of technology as I strongly believe in simplifying retail.

However, technology can be your BFF if retailers are clear on their brand’s promise.

For example – Walmart is investing in robotics in order to reduce its operating expenses.

It is in line with its brand’s promise,

“Everyday low Prices”

By lowering operational costs, they can offer better prices to their customers.

Conclusions:

Never seen or heard brands will make a foray into the retail sector and that’s the crux of

RETAIL RENAISSANCE

Feel free to reach out to me in case you are a business owner willing to reinvent your concept.

References: header pic Photo by Ksenia Chernaya from Pexels, Mckinsey report on next normal, Arabian Business, and other business publications.

About the author:

Ritesh can also be followed on Instagram as @mohanritesh & on Youtube as @riteshmohan

August 16 2020

Are Beauty Retailers creating experiences in their concepts? Experiential Retail

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How experiential retail is changing the customer experience?

Millennials are no longer driven by product benefits and brands. they need experiences.

Covid19 has accelerated this change in customer’s preferences even more & has put Beauty retailing into various challenges.

Few of them are:

Non-usage of testers as precautionary measures by cosmetics brands
Low sales turnout especially if you are a physical brick & mortar retailer.
Growth of digital avenues but online sales are not enough to sustain the overheads of entire retail concepts.
Despite rent reliefs from the malls, the low sales traction is not enough to meet P&L objectives.
Retailers are pushed for short term liquidation strategy. (sales & discounting)
Pricing or COGS (cost of goods sold) is unstable to sustain Brick & mortar concepts.

An overall decline in the category but there are few categories which have shown growth in term of Eyeliners, compacts (daily usage for work from home women) and skincare.

Today’s beauty industry is different from 10 years ago.

Earlier, retailers used to focus on color pallets based on the target customer’s skin tone, used to order quantities from the manufacturers based on the number of stores (footprints of the brand).

Retailers used to push the products with some “How to use” videos and train their front liners and the product used to fly off from the shelves with little advertising.

Today, Instead of traditional advertising, beauty and cosmetics brands are largely digitally-focused, using social channels (and influencers) to reach and engage users.

Learn how technology is driving growth in beauty retail, click here.

How to drive scalability in the current scenario? Can experiential retail redefine traditional retailing?

Experiential retail is the answer.

Millennials are no longer enticed just by good product, but they prefer to accumulate experiences from either using your products or by experiencing the product benefits and the positive affirmations which they can share on their social handles i.e. creating shareable moments.

Are you creating shareable moments in your beauty stores?

With 100 percent confidence, I can say that none of the beauty retailers are doing so. (Barring a few).

Today, Beauty retail has evolved from Departmental (multi-brand stores) to mono-brand (standalone stores) to specialized experiential stores to specialized eCommerce stores.

Experiential retail is also another big source of investment, with campaigns allowing beauty brands and retailers to tap into the changing behaviors and interests of consumers.

Are you ready to embrace a new trend- Experiential Retail?

“Customer loyalty is a myth.”

If you as a beauty retailer is having a strategy based on increasing your customer loyalty then you are going to burn much of your cash resources.

With an increasing number of direct-to-consumer brands entering the beauty market, the fight for the consumer’s attention is now fiercer than ever.

Alongside this, today’s customer is overwhelmed with options, and that their loyalty is easily lost.

Reach out to your customers wherever they are on any of the platforms.

The customer can be online, on market place websites as well as on social media (Facebook, Instagram, Twitter).

You as a retail brand need to be more visible than ever before.

TOP OF MIND approach is more and more relevant today.

Case study: Boots

Objective– Reposition Boots as a big player in the beauty retail space

Strategy:

Boots partnered with Glamour Magazine on the ‘Glamour Beauty Festival’ – a live event giving visitors the chance to discover some of the new brands set to launch in Boots’ stores.

With interactive services such as skincare consultations and foundation matching, the event allowed both Boots and partnering brands to capture the interest of consumers at the same time the products became available to buy.

Watch video of last year’s Glamour beauty festival and how brands used it effectively to their advantages.

One of the international brand Charlotte tilbury’s (partnered with local regional retail powerhouse) did an activation in one of the leading malls in the UAE which saw a plethora of media, beauty fashionistas & influencers turning for the experiential event.

See the pics here.

Retail is not dying, Bad Retail is certainly dying.

Post covid19, as more of the stores open up for trading, there is a huge pressure on the frontliners to push for the sales, merchandising to ensure that the display and mini tester units are available, use & throw kind of testers, store operations to ensure that they maintain safety standards while welcoming their customers.

Basically, all the departments of the store are under pressure.

Learn how you can reach millions of people with just one phone ‘missed call’, click here

Stress is good: create experiential retail

Today’s customers want “shareable moments”.

Brands like Lululemon, are intended to build a community around the brand through activities like workout classes, group meditations, and scheduled events and invite their customers to engage with the brand using activities instore.

Buy Online & Pick up instore more relevant than ever.

Beauty retailers who have their own e-commerce sites must try to drive traffic from their sites to their stores.

Encouraging returns through stores or even making your stores as fulfillment hubs.

Watch my webinar which I presented to over 75 retail professionals on how they can thrive during covid19.

Using in-house influencers – your biggest influencers or ambassadors are your front liners.

Case study – Lin Qingxuan

During the covid19 outbreak, this Chinese beauty retailer was forced to close down 40% of its stores in Wuhan (where the virus started).

The company immediately pivoted using its sales team to interact with the customers on WeChat and encouraged their team members to become influencers for the brand.

By posting educational makeup videos on product usage, unpacking their gift sets, etc.

Result:

Despite lockdown, the brand was able to garner a 200% growth in its sales.

Do you as a beauty retailer innovate to sell?

Majority of the Middle Eastern retailers are having a mindset of Traders and not of a Retailer.

Historically, the Middle East region was evolved from a trading hub to a Retail hub. That’s the history of retail evolution in the region.

Innovation to most of the retailers means product development, packaging, or product usage only.

“Innovation can be deployed even in selling.”

Learn how Men’s grooming market is adding a new dimension, click here.

If any of my retail fraternity members, want to share their experiences with me or need my input towards their recovery plans, then they can reach me on riteshmohan@yahoo.com.

About the author:

Ritesh Mohan is a passionate retail professional with over 20 years in the Retail sector, handling some of the biggest brands in beauty, fashion, and fragrances retail & FMCG sector. He has been instrumental in the growth of some of the regional brands as well in the Middle East region. Ritesh specializes in Retail management, Product development, and Brand Management, Retail Operations, Sales Management and Franchising & Business Management. He strongly believes in empowering business owners with his wisdom & experience of around two decades in the industry.

Ritesh can also be followed on Instagram as @mohanritesh & on Youtube as @riteshmohan

March 1 2020

Is conventional advertising dead? Cheers to Branded content.

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Branded content is the new age communication tool for marketers and advertisers.

Print era vs Branded content

It was an era wherein the ideas were stronger than visibility, as there were few avenues for the brands to showcase their products or services.

“Words” were the only way to influence customers hence the era was of Print ads. In the 1980’s with the advent of televisions entering the household, visual communication using telefilms effectively, as it cut across the geographies and cultures.

Fast forward to 2020, an era of YouTube, OTT etc….Here comes advertising in its new avatar…. Branded content advertising.

Today everyone is pressed with time… One gets exposed to 100GB of ads during the day. Gone are the days wherein one simple print ad could create million-dollar sales revenues for the brands.

I still remember a classic Print ad in Indian advertising of the Prestige cooker… Here it is ….

Do you recall the famous Amul ads, In India market, Amul occupies 81% of the entire butter market, truly encapsulated by its tagline “Taste of India”.

Learn more about the most memorable ads of Indian brands, click here.

What is a Branded Content definition?

As per Wikipedia, Branded content (also known as branded entertainment) is the practice of marketing via the creation of content that is funded or outright produced by an advertiser.

In contrast to content marketing (in which content is presented first and foremost as a marketing ploy for a brand) and product placement (where advertisers pay to have references to their brands incorporated into outside creative works, such as films and television series), branded content is designed to build awareness for a brand by associating it with content that shares its values.

The content does not necessarily need to be a promotion for the brand, although it may still include product placement.

The main point to be kept in mind here is “Values”. In branded content, we talk about brand values rather than their features or functionalities.

Learn how advertising influences consumer’s behavior, click here.

Is Branded content the same as content marketing?

The answer is Yes.

Content marketing is a form of marketing focused on creating, publishing, and distributing content for a targeted audience online.^[1] It is often used by businesses in order to:

Attract attention and generate leads
Expand their customer base
Generate or increase online sales
Increase brand awareness or credibility
Engage an online community of users

In this situation, brands need to look for new ways to connect with their audience, impact them in creative ways and convey the values they represent. Branded content is a great solution to all these needs. Branded content is an effective response to an increasingly saturated market.

What has given birth to a new genre of advertising?

Branded content is a new way to appeal to customers EMOTIONALLY. And YouTube is fueling this growth.

YouTube user statistics:

The platform has over 1.9bn logged-in monthly users.
6 out of 10 people prefer online video platforms to live TV.
In an average month, 8 out of 10 18-49 year-olds watch YouTube, while 90% of America 18-24-year-olds use it
You can navigate YouTube in a total of 80 different languages (covering 95% of the Internet population)
Branded content has a high probability of going viral and gathers millions of views which is a limitation on conventional mediums like TVCs (Television commercials).

Watch a branded content by Ahmed foods (a brand from Pakistan)

Today, more brands prefer branded content since its storytelling format appeals to consumer’s emotions which results in generating positive brand affinity and also awareness.

Moreover, the cost feasibility of gathering a million views on YouTube makes it more viable for the brands to get ROI on their ad spends.

Learn about the business model of McDonald’s, click here.

Branded content vs typical advertising

While typical marketing campaigns are all about choosing a USP and then finding a way to convey that selling point to your customer; Branded content takes a new approach.

Rather than focusing on the product’s story, the content focuses on the consumer, their needs, and how the product can solve their problems.

This strategy allows companies to connect with their audience on a deeper level.

Branded content is more of a customer-focused type of content marketing.

It provides value to the customer, like traditional content marketing, but the focus is on making an emotional connection, not selling something.

Branded content also pulls attention to the unique values and ideals of the company, to create an affinity with readers and viewers.

Branded content example: Pillsbury’s

Few tips for the content marketers or copywriters:

Branded content needs to generate conversation around the brand. More than looking for a direct sale or conversion, these contents try to impact the audience and spark conversation around the brand.

Therefore, the key metrics to measure the success of branded content of this type tend to focus on the number of mentions.

Create content that your customers want to consume.

Branded content example – Watch the video by coke studio which got 32 million views.

Coke uses this property of coke studio in its key markets to promote music which can cut across geographical borders and cultures.

Appeals to emotions. The use of emotions to convince goes back to the times of Aristotle, and today is still an effective resource. Branded content does not seek to use rational arguments about why a brand is better than the competition, but instead seeks to connect with the audience on a more intimate level.
Use storytelling methods.

Watch below film by Google in India to honor unsung heroes;

Challenges ahead for Brands.

To break the clutter of advertising messages on YouTube and to ensure their content strikes conversation amongst the customers.
Lack of Idea generation amongst the creative fraternity to influence customers through emotions. Few brands have mastered the art like Fevicol, Amul, and McDonalds, etc.

To end my article, I would like to ask my advertising and marketing fraternity as to what they feel would be the future of advertising communication in the coming years.

You can express your views by commenting below.

If any of my retail fraternity members want to work out a branded content strategy for your brand or retail stores then feel free to write to me on riteshmohan@yahoo.com. I would be more than glad to support my readers with my cutting edge strategic insights and inputs.

About the author:

Ritesh Mohan is a passionate retail professional with over 20 years in the Retail sector, handling some of the biggest brands in beauty, fashion and fragrances retail & FMCG sector. He has been instrumental in the growth of some of the regional brands as well in the Middle East region. Ritesh specializes in Retail management, Product development, and Brand Management, Retail Operations, Sales Management and Franchising & Business Management. He believes in empowering business owners with his wisdom & experience of around two decades in the industry.

February 17 2020

Excess Inventory Problems? The answer is Recommerce

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Inventory Issues- Recommerce is the way forward.

Recommerce — “resale commerce” — is the process of selling used products or excess inventory to companies or consumers.

A couple of weeks back, I was not aware of this term nor its business model until one of my LinkedIn connection Patricia vekich Waldron wrote a post on Recommerce that caught my attention and made me curious to learn more about the concept and understand how brands are utilizing this model of Recommerce to their advantages.

I strongly believe in acquiring new knowledge, learning and sharing with my friends through my blog articles. So this article would help retailpreneurs with the new business model.

What is Recommerce?

As per Wikipedia, Recommerce or reverse commerce, refers to the process of selling previously owned, new or used products, mainly electronic devices or media such as books, through physical or online distribution channels to companies or consumers willing to repair, if necessary, and reuse, recycle or resell them afterward.

Important statistics

Resale or Recommerce is already worth $24B and it’s expected to grow to $51B in just five years.

33% of Millennials and Gen Z expect to shop resale in 2019—and that figure is increasing 40% year over year.

Recommerce model – Not new for Indian Kitchens or culinary practices.

Recommerce model is being practiced for centuries in Indian kitchens… How?

Do you recall your mom or wife using leftover curries or vegetable dishes from previous night dinner and turning them into delicious parathas, new mixed vegetable stuffed idlis or even dosa’s stuffing.

Or even using them in a dish called Khichdi (vegetables mixed with lentils and rice).

Recommerce or recycling model has been used for centuries and it’s now it has been taken to the next level by digital & tech-savvy companies. We have been buying refurbished cars, mobiles, laptops TVs, etc for years now.

The same model is now taken to the apparel industry wherein sustainability is a big issue.

Learn more about sustainability in fashion, click here.

Basic steps for Recommerce model:

The process includes–

Collect the obsolete and undesired products from the users and companies, and returned goods from e-commerce portals. (Products may or may not contain any defects)
Sort them
Repair them
Repack them
Make sure that these products work properly
Sell them on Reverse Marketplaces or to the companies directly.

Driving consumption through re-use

For instance, instead of buying a new mobile every few years and just tossing the old one in a drawer, people are increasingly buying and selling these second-hand phones.

Counterpoint Research reports, “the global market for refurbished smartphones grew 13% y/y in 2017, reaching close to 140 million units. This was in contrast with the global new smartphone market that grew a scant 3% last year…

Apple has also started selling its refurbished used cellphones at lower prices to expand its user base in developing or underdeveloped economies.

Watch the video here

Recommerce in Fashion- Giving luxury products a new lease of life

Returning unwanted items and receiving points or discount vouchers for your next purchase is nothing new.

H&M has already organized such an initiative with its Garment Collection Program. After the success of the campaign in 2013, the brand introduced the possibility of returning clothes permanently. In return, H&M offered a discount card for 15% off the next in-store purchase.

Farfetch created a platform that allows you to donate old designer bags. In exchange, the company offers credit to fund the next purchase on their website.

Nordstrom has announced its latest creative projects initiative, See You Tomorrow, a new recommerce experience launched on January 31, 2020.

Powered by technology and logistics startup company Yerdle, “See You Tomorrow” offers customers both an online resale site and an in-store shopping experience in the New York flagship store.

The resale shop will feature a thoughtfully edited, authenticated assortment of pre-loved apparel and accessories from highly coveted brands.

Watch video here

Merchandise will include women’s apparel, women’s shoes, handbags, men’s apparel, accessories, shoes, children’s clothing and a limited selection of jewelry and watches.

Learn about Rent a Runway business model, click here.

Shopping second-hand is certainly not a new concept.

Consumers are also increasingly keen to reduce their own consumption and to help combat the negative impact on the environment.

This has led many retailers to enter the ‘Recommerce’ market (sometimes referred to as ‘resale’ or ‘reverse commerce’), which refers to the buying and selling of pre-owned goods.

There have been examples from the Middle Eastern retailer who are emphasizing sustainability in their campaigns and new collections hence Recommerce is here to stay for long.

Watch the video here

Case study: Yerdle

Yerdle, founded in 2012, is a white-label business that operates resale for brands.

It handles the logistics, including pricing, for resale platforms that live on brands’ e-commerce sites. (Someone shopping for a secondhand sweater from her favorite brand will have the experience of buying directly from that brand, rather than Yerdle.)

Yerdle business model is based on philosophy,

“Brands adds more authenticity to resale and are trusted by consumers [while resale] gives the luxury brands another revenue stream.”

Experts in reverse logistics.

Inventory management can pose particular problems since brands often aren’t redirecting new pieces from warehouses.

Yerdle operates on a revenue-share model with rates dependent on how much of the backend process it handles.

The data advantage

Unlike many online consignors, Yerdle isn’t a retailer.

This works to its advantage when securing partnerships as brands don’t have to worry that cooperating with or encouraging resellers can cut into their sales.

Data and consumer’s details remain with the brands, so Yerdle is only facilitating and helping brands to get rid of your excess or returned inventories to new price-conscious customers.

In case, if any of the middle eastern retailers want to learn more about Recommerce, then you can reach out to me on riteshmohan@yahoo.com

About the author:

Ritesh Mohan is a passionate retail professional with over 20 years in the Retail sector, handling some of the biggest brands in beauty, fashion and fragrances retail & FMCG sector. He has been instrumental in the growth of some of the regional brands as well in the Middle East region. Ritesh specializes in Retail management, Product development, and Brand Management, Retail Operations, Sales Management and Franchising Management. He strongly believes in empowering business owners with his wisdom & experience of around two decades in the industry. Hence he is going impart his knowledge in the form of a book. His book is currently underprint.

October 2 2019

Forever 21, America’s hottest fashion brand- Losing its Hotness.

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Forever 21 once carried a tag of America’s hottest fashion brand. Off lately, we heard in the news that the chain has filed for bankruptcy in the United States of America.

Having worked with this brand and knowing it inside out & being an ardent fan of this brand, I even had the pleasure of interacting with the founders and senior leadership of the Forever 21 brand.

Let me confess that knowing the brand’s DNA, it is based on strong fundamentals, its beliefs, its purpose is all in the right place.

Forever 21 USPs (unique selling propositions) is based on 4 core pillars

Large collections of fashion styles
Limited quantities per style
Tomorrow’s fashion trend, today.
Fashion for which you don’t have to break your bank.

This concept gave birth to a term we call as “Fast Fashion”.

What is the Fast Fashion concept?

Fast fashion can be defined as cheap, trendy clothing that samples ideas from the catwalk or celebrity culture and turns them into garments in high street stores at breakneck speed.

It is a case model for the super-efficient supply chain, in turning trendy fabric into the most sought after designs and producing it in minimum lead times and shipping it on to the shelves as fast as possible with minimum lead times.

So what went wrong with Forever 21?

Fashion retailer Forever 21 has filed for Chapter 11 bankruptcy protection in the US. The company said it plans to “exit most international locations in Asia and Europe” but would continue to operate in Mexico and Latin America.

It expects to close up to 350 stores worldwide, a spokesperson said, including as many as 178 US stores.

Let me clarify here that filing for bankruptcy protection is not the same as going bust, it is a provision provided by law to corporates to relook and restructure their debts. It is like going on a strict- diet to become leaner & healthier.

Rapid expansion i.e. opening new stores in new territories led to capital erosion, a slump in sales, and competition from eCommerce and a rise in demand for cheap fashion all led to the downfall of Forever 21.

Forever 21 core promises

Forever 21, provided every teenage girl a chance to look like a fashionista without creating a hole in their pockets. Yellow-colored Forever 21 bag was the most visible shopping bag in the malls across regions.

Mind you there was no Instagram or influencers when forever21 started out.

It wasn’t a unique idea — teenage girls have always wanted to dress like their idols. But the dizzying speed at which Forever 21 could make those trends available and affordable, however, was.

The company’s specialty became known as fast fashion, and the chain grew aggressively to become a staple in American shopping malls, opening hundreds of stores and redefining what it meant to be a traditional mall anchor.

Scalability comes with problems

As they say, when you scale your business, you have to face different problems. Problems like quality issues, keeping up with the trends, and a price promise is a herculean task to balance.

Forever 21 had roughly 450 locations by 2009, and its “cheap chic” assortment was especially popular in the aftermath of the severe recession in 2008-09. Hundreds of shoppers would line up for the grand openings of its new stores.

Check out the video wherein I had launched its first store in New Delhi, India. ( In the last frame you might get to see a glimpse of me…)

They kept opening more outlets, and by 2015, the Changs (founders) had a combined net worth of $5.9 billion — but that fortune has since shrunk to $1.6 billion because of Forever 21’s problems and declining valuations among similar retailer (source Forbes )

As it grew, Forever 21 expanded into menswear, children’s clothing, maternity, and plus-size apparel and cosmetics, among other items. But that made the chain looked too much like the conventional department stores.

This is where things started dwindling down for the brand.

They lost the focus and forgot the core philosophy from where they started. You cannot induce fast fashion across categories like kids, plus sizes, athleisure wear, etc. Forever 21 stretched themselves across categories.

Learning –

Focus is the most essential aspect an entrepreneur has to practice always.

Learn as to how Instagram is disrupting fast fashion, read here.

Failed to Adapt to changing consumers demand

A brand popular with millennials may not be popular with Gen Z, and it should evolve to stay ahead of the trends.

Generation Z’s apparently is looking elsewhere for clothing inspiration.

You cannot be everything to everyone, you just need to focus on targeting with a particular niche segment of consumers, who believes in your product and would ensure that you stay afloat in turbulent times.

Forever 21 core customer base was teenage girls, once they grew older, they started craving for Quality over Quantity. They would not mind paying a little extra to seek a good quality garment.

Forever 21 failed to keep up or raising its quality standards instead chose to remain a fast-fashion retailer offering cheap fashion.

Competition too tough to crack

Competition from online fashion brands like fashion nova, nasty gals gave forever 21 tough competition and is one of the main reasons for the brand’s failure. Fashion Nova, a Los Angeles-based, online-only fast-fashion retailer known for its body-hugging silhouettes, “is the new Forever 21.”

Fashion Nova relies heavily on influencer marketing — teaming up with celebrities, bloggers and others who have large online followings. It knows its shoppers: young women who want to emulate the aesthetic of the likes of the Kardashian family.

As fast fashion starts to get even cheaper with the arrival of the wildly cheap Primark in the US, other consumers are veering away from shopping cheaply, and, rather, toward shopping smartly.

Learn more about fashion forecasting, click here.

Poor Online Offering

The design felt out of place when compared to competitors like H&M and Zara—something that modern-day consumers are no longer willing to countenance.

Family dominance

Forever 21, always remained and operated as a close family business. They had not opened up their corporate governance by exploring different options for financial inclusions into the business.

The Way forward for Forever 21

Downtimes provide the best time for self-reflection, understanding what went wrong and then coming back re-energized with full power.

“In order to take a big leap, one must take 10 steps backward”.

Knowing the founders of Forever 21 and their entrepreneurial spirits, the brand would soon emerge in its new avatar and will once again dominate the fashion scene.

About the author:

Ritesh Mohan is a passionate retail professional with over 20 years in the Retail sector, handling some of the biggest brands in beauty, fashion and fragrances retail & FMCG sector. Ritesh has been instrumental in the growth of some of the regional brands as well in the Middle East region. He specializes in Retail management, Product development, and Brand Management, Retail Operations, Sales Management, and Franchising & Business Management. He strongly believes in empowering business owners with his wisdom & experience of around two decades in the industry.

April 7 2019

How is Instagram creating disruptions in Fashion industry?

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The topic does it arouse some curiosity, if yes, then allow me to make a bold statement that Instagram is disrupting the fashion industry and creating a newer business model within the fashion sector.

How is Instagram disrupting Fashion industry?

Instagram over the years has become the most used social platform for the millennials. As per Statista, It has over 77.6 million active users of the platform.

Firstly, let try to understand what Instagram is used for more often?

Millennials are all driven by imagery and are fueled by the drive to appear better than our counterparts or friends. This social need to look glam, ahead of our peers have fueled growth for Instagram.

People click themselves in their best outfits and post on a social platform; in return generate likes and followers.

We have seen lots of Instagram bloggers becoming Instagram influencers and producing fashion-oriented content and rising to fame in a short span of time.

Brands mull out exorbitant fees to these influencers in order to get their fashion collection spread out to their followers.

How this trend or appetite for fashion and Instagram harming the sector?

Consumers today have started misusing the Return policy of most of the fashion brands.

They buy fashion items from stores/online for the fancy event, tucking in the tags, getting themselves clicked and returning back to the store the next day.

In our Middle Eastern region, having worked in the fast fashion industry, we used to follow something we called as “gift loan” policy i.e. loaning the merchandise to Press, fashion bloggers for their shoots and in return get “outfit courtesy” sponsorship or mention in their photo credits.

But in the western world, smart shoppers are misusing this concept.

According to a survey by Barclaycard, nearly one in 10 UK shoppers admit to buying clothing only to take a photo on social media. After posting the picture online, they return it back to the store.

Instagram created a new sector within the fashion industry

This trend has given birth to brands that tailor specifically to the Instagram shopper, like the uber-popular Fashion – Nova, and Nastygal.

Collections cater to social media savvy customers i.e. meant to be worn once maybe twice, photographed and then discarded.

Another favorite brand of Instagram age is “Rent the Runway” brand.

They have quickly understood the trend wherein consumers are misusing the return policy and hence they structured their business model towards renting the designer clothes for a fee.

Case study: Fashion nova.com

There is an old saying “One man’s loss is another men’s gain”

Successful businesses always pivot themselves to changing the environment and consumer’s demands.

Take a Guess which brand gets more searches on google, is it Chanel, Dior, fashion nova, Gucci, YSL

If your answer says Chanel then you are wrong, as per Google 2018 statistics, the most searched brand was fashion nova. Today fashion nova has 15million active Instagram users who endorse the brand day-in and day-out.

Want to learn the business model of fast fashion brands, click here.

The formula is simple—and profitable.

Get 3,000-5,000 influencers endorsement.

Create a hyper-engaged community on social media.

Sell disposable clothing for a wide range of body sizes & pricing it pocket-friendly.

The result, you have a successful business model at your disposal.

Foundation of Fashion Nova business:

Communicating the fact that their merchandise is being worn by fashionistas, influencers who primarily trying to communicate that though they can afford a luxurious watch, bag, shoes, but they wear a fashion-nova dress which is HOT & TRENDY and does not burn a hole in your pocket.

The very sense of HOT & TRENDY & Economical is the core of their messaging.

Watch Cardi B endorsing fashion nova.

If any of my readers want any help or assistance in their entrepreneurial venture or want to understand the business of fashion and beauty, then feel free to email me on riteshmohan@yahoo.com.

About the author:

Ritesh Mohan is a passionate retail professional with over 20 years in the Retail sector, handling some of the biggest brands in beauty, fashion and fragrances retail & FMCG sector. Ritesh has been instrumental in the growth of some of the regional brands as well in the Middle East region. He specializes in Retail management, Product development and Brand management, Retail Operations, Sales Management and Franchising & Business Management. He strongly believes in empowering business owners with his wisdom & experience of around two decades in the industry.

February 2 2019

Are the Middle Eastern retailers ready for Retail 3.0 ?

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“Are the Middle eastern retailers ready for Retail 3.0?” This is one of the questions, I was asked in one of the networking events recently.

My reply to the questioner was “No”, the reason for me saying is that we as retailers and mall landlords are still running retail as a real estate business and not as a Retail business.

Though I see few big retail companies embracing technologies, re-inventing themselves by not only investing in real estate but in creating actual “Asset” i.e. “Human resource skilled in running retail businesses”.

I was really glad to learn that one of the biggest mall operator companies in the Middle East would be opening retail education institute to develop the retail skill set amongst retail professionals.

Read the news clipping here.

I had previously forecasted the trends and retail brands to watch out in 2019, check out the article here.

So what is retail 3.0?

I would relate this concept of Retail3.0 to Indian Holy Scripture “Bhagavad Gita” which professes the concept of “Vasudeva kutumbh” which means nothing but Globalization (the world is your market place)

In Bhagavad Gita, there is a word called “ tathastu” which means literally “ You ask & You get it” & that’s what is the main premise of Retail 3.0 i.e. how to make the lives of shoppers more convenient by using technology as the main ingredient.

Retail 3.0 is the evolution of multi-channel retail distribution. It blends technology with physical brick & mortar retail i.e. Omnichannel retailing.

It makes customers (millennials) experience the brand and store more holistically by engaging them & reducing their pain points which a conventional shopping brings with it.

For example, carrying loads of shopping bags post-shopping to your vehicle and back home.

Carrefour has started similar service of “Valet trolleys” in Dubai.

Thanks to my friends at Pulse 95 FM, I got the opportunity of sharing my views about the concept of “White Friday sale”, “Yellow day sale” & “Cyber Mondays” and why these events have become a part of every retail marketing calendar.

You can listen to the podcast here:

I always emphasize on case study format in order to understand the real-life example, I would like to quote one case here from one of my favorite brands.

Case study:

Company:

Bonobos – for men’s clothing store wherein shopper goes n tries out clothes. If shopper likes it, they buy online and garment gets delivered to their home.

Customer Benefit:

No hassles of carrying shopping bags.

Retailer’s benefit:

The Concept requires smaller stores that carry limited inventory as it eliminates the need of a stock room, resulting in the addition of more trial rooms for the customers to try merchandise.

Because of smaller spaces, they shell out lower rentals and lower inventory holding costs, resulting in bringing more operational efficiencies.

A great example of Phygital i.e. Physical brick & mortar plus digital/online e-commerce.

I would more than happy to share my retail wisdom with my retail fraternity, in case if you are a retailer, mall owner and need cutting edge & innovative solutions for your retail operations, then you know, who is your “Go To” person.

I can be reached on riteshmohan@yahoo.com

My personal quote to end the article:

“Future belongs to those who dare to think different & act and believe in creating sustainable objectives for their brand”. By Retail Ritesh.

About the author:

Ritesh Mohan is a passionate Retail professional with over 20 years in the retail sector, handling some of the biggest brands in beauty, fashion and fragrances retail & FMCG sector. He has been instrumental in the growth of some of the regional brands as well in the Middle East region. He specializes in Retail management, Product development, Brand management, Retail Operations, Sales Management, Business Management & Empowering business owners with his wisdom & experience of around two decades in the industry.

January 6 2019

What is the Business Model of food delivery apps?

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Background of Food Delivery apps

Food delivery apps or food-tech is no longer a cliché and is one of the most used services in the world today.

With the advent of technology especially mobile apps, these food delivery apps have tapped on the “convenience” factor and are one of the fastest-growing sectors in food-tech business.

Food delivery apps are mainly lead/order generation and logistics aggregator in the foodservice space.

Curiosity seeks information

I am writing this article based on my personal preferences and habits wherein ordering food online or through an app using food delivery apps like Swiggy, Zomato, talabat, Ubereats, deliveroo has become a norm for me, whether it is just a casual dining option or ordering food for family get-togethers, I have become habitual of using these food delivery apps.

Being a curious person, I wanted to study as to how these food delivery apps make money, what is their business model?

I have deeply researched this subject and found some interesting facts.

I am sharing these facts and my learnings on this topic since it is an interesting sector that has evolved in the last 5 years or so.

Thanks of course to technology and let me also highlight that it has provided jobs to several people and provided them with a steady income.

Hence this food-tech is not only creating additional jobs but contributing to the overall socio-economic foundation.

Interesting stats for food delivery apps:

As per statista.com, the market size of food delivery apps in the United Arab Emirates will be worth about 13.2 billion U.S. dollars in the UAE by the end of 2018.

26% of people order food online at least once a week while another 24% do so two or three times a week.

The surge in food delivery apps in recent years is a clear signal of their success.

This sector is working on one premise, “fulfilling your craving for food by providing your desired food at your doorstep in the most convenient and time-saving manner”.

What led to the growth of food delivery apps?

The restaurant business involves high investments in space and equipment. Operating expenses are also high, with raw material contracts and staff — for every minute these aren’t utilized, they lose value and hit margins.

The only way to make money is to ensure a growing number of orders – that’s where food tech or food delivery apps come to their rescue.

Restaurant sector forms a part of an unorganized sector wherein there are big restaurant chains (dominated by MNCs) and various small restaurant owners & cafeterias who cater to their close proximity customers by delivering ordered food through their own carrier, most of the time a delivery boy using a bicycle.

Food delivery apps have given these small restaurants an opportunity to reach wider geographies and increase their top line orders.

As per statistical data in India alone, Zomato has recently crossed the three million deliveries a month mark.

This is in just two years since launching the meal delivery service.

It has 25,000 restaurants on its platform in India, including 7,500 that are exclusively available only on Zomato.

Modes of revenue for food delivery apps:

Commission from Restaurants:

The commissions earned from restaurants form the primary source of revenue for these food delivery app companies.

The quantum of the commission depends upon a lot of factors which include the value of the order as well as the location and popularity of the restaurant.

All these food Apps charge a commission to the restaurant between 22–30% on each order placed. The discounts are extended by the restaurants individually.

Swiggy, Zomato, and Ubereats also charge an additional amount for ads within their platforms for the positioning of a restaurant in a particular category.

Featured Lists:

These food delivery apps charge restaurant fees for featuring them in their curated list of restaurants on their app/website.

Being featured on such curated lists often helps these restaurants find more business.

Daily deals:

These food delivery apps, especially Swiggy & Zomato tie-up with the restaurants by offering a deal on one of the best dishes that a particular restaurant has to offer at throwaway prices. These apps promote them on their deal pages and orders are generated and passed onto the restaurants who use the principle of upselling the side dish orders or beverages with the deal or discounted dish. It offers win-win solution to both customers and restaurant owners. Higher the ticket price, more commission for the food delivery apps.

White labeling:

Another one which not many may be aware of. In India, Swiggy has entered into white labeling restaurants.

Products are sold with Swiggy branding, and the restaurant has no existence for the client. Swiggy generates great revenue for them and takes care of most hassles. A home run for the ones who wish to only generate revenue.

Are Food delivery apps like Zomato and Swiggy making money?

Here comes the most difficult trivia, a question that most of the finance professionals in food business hate to answer.

Foodtech startups follow a premise that roti (food), kapda(clothes) aur makaan (home) could never go out of demand, but over time many of them faced an early death.

By 2016, several food startups – TinyOwl, and EatOnGo – were out of the fray; Only the ones with deeper pockets and funding have survived the bloodbath.

However, there are only a few players like Ubereats, Zomato, Talabat, Swiggy who survived the first stage.

Investors, Venture capitalists, and entrepreneurs have burnt their fingers and realized that food is a tough business.

The way forward: Recipe for success

With all the funding’s, the most crucial aspect of food delivery app would be

Last-mile deliveries

(Want to learn more about last-mile logistics? click here)

Hub & spoke model:

Both Zomato and Swiggy have also launched the cloud kitchen vertical, where the company provides the space and sets up a physical kitchen for participating restaurants that just have to get the food made and fulfill deliveries.

Whether these food tech or food delivery apps make a profit in years to come, only time will tell.

Currently, they all depend on VC funding based on valuations and top-line order generation.

Check out this interesting video which would summarize my article holistically.

I would like to end my article by a wonderful quote by Virginia Woolf

“One cannot think well, Love well, sleep well if one has not dined well”.

Quote summarizes the future of food delivery apps and their usage going forward.

About the author:

Ritesh Mohan is a passionate retail professional with over 20 years in the Retail sector, handling some of the biggest brands in beauty, fashion, and fragrances retail & FMCG sector. Ritesh has been instrumental in the growth of some of the regional brands as well in the Middle East region. He specializes in Retail management, Product development, and Brand Management, Retail Operations, Sales Management and Franchising & Business Management. He strongly believes in empowering business owners with his wisdom & experience of around two decades in the industry.

December 17 2018

How advertising influence buying behavior?

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The primary function of advertising is to influence and trigger “call to action” amongst its consumers to buy something.

Advertising is an art of persuasion.

Understanding how persuasion techniques are used in advertising is a science to reckon.

Persuasion techniques can be either rational, irrational or emotional or combination of all three.

I am inspired to write this article post my recent Diwali vacation in India, I observed a strong trend in the market i.e. “Popular Indian sweets were replaced by chocolates.”

During Diwali, I received gifts from my friends and family members and there was one common factor running through most of the gifts i.e. chocolates.

My curiosity increased as these chocolates were both Indian and international.

Chocolates like Ferrero Rocher, wrapped in golden foil resembled popular Indian sweet called Ladoo, were selling like hot cakes.

On the other hand, there was virtually no Indian mithai, amongst the Diwali gifts I received this year.

(Read my article “most memorable ads from India”, click here )

So what caused this change in consumer buying pattern and habits?

Exposure to International advertising/ products and trends:

Chocolates are no longer merely kid stuff, which used to limit their appeal terribly. Brands such as Cadbury and Snickers, Amul have re-positioned chocolates as adult snacking options, which has brought in a fresh hunger for these products.

Almost all International brands like Lindt, Godiva, are now available in Indian cities. The economic and cultural growth also contributed in changing the trends, today middle income group has more money at their disposal than what they used to have 10-15 years back.

Indian youth today loves to experiment with products and are readily embracing western trends. They may look Indian but from their heart, they are very westernized and open in their thoughts.

Fake or spurious ingredients used in excess in traditional sweets

Despite strict food regulations, small-town traders & sweet shops use spurious ingredients in the production of traditional sweets which causes various health complications on consumption.

Tapping of Emotions by advertisers

Mithai or sweets are synonymous with Happiness or special occasions.

Festivals, celebrations, traditional occasions like (childbirth, success in exams etc) are never in short supply in India.

Brands like Cadbury capitalized on this trend and change in consumption patterns and came up with a masterstroke communication strategy called “ Kuch metha ho jaaye”.

Endorsed by film actors and superstars, advertising helped the brand Cadbury to enter every Indian household, every festival, every occasion of happiness.

Tapping your hunger by providing you indulging snack on the go.

Brand Snickers recently emphasized this through its “Who are you when you’re hungry” campaign, based on the insight that hunger is relevant for everyone, regardless of age or mindset.

Communicating Health benefits of chocolates – More than symbol of love and affection

It is proven scientific fact that indulging in chocolate especially dark chocolates has some health benefits.

Check the article highlighting the benefits of chocolates

I am not promoting any chocolate brand nor its consumption but my intention is to drive a fact that how advertising when coupled with consumer’s insights (thanks to consumer research) not only create a demand for a category but also changes its consumer’s behavior and provide them with alternative product to become a part of their festivities and happy occasions.

Successful companies aim to build strong relationships with consumers so they can retain those consumers as long-term customers and maximize revenue opportunities.

I cannot end this article without showing this funny commercial of a chocolate brand which uses humor/ fun as an engagement hook.

It is the power of advertising that makes a western dominated category like chocolate to shed their western layers and become an integral part of Indian festivities and households.

I hope my experience and learning about how advertising influences behaviors would help and guide my fellow marketers who are on their way to carving a niche for their brands.

In case if any of my readers, need my help or inputs to carve out a communication strategy for their brands then I can be reached on riteshmohan@yahoo.com.

It would be my pleasure to help my marketing fraternity in growing the overall industry.

References: Book “storm the norm” by Anisha Motwani; Cadbury’s commercials on youtube, economic times.

About the author:

Ritesh Mohan is a passionate retail professional with over 19 years in the retail sector, handling some of the biggest brands in beauty, fashion and fragrances retail & FMCG sector. He has been instrumental in the growth of some of the regional brands as well in the Middle East region. He specializes in Retail management, Product development, Brand management, Retail Operations, Sales Management, Business Management & Empowering business owners with his wisdom & experience of around two decades in the industry.[/vc_column_text][/vc_column][/vc_row]