The Hindu Business Line : The Future's in retail media

Exploring the `future of media', Kishore Biyani's Future Group has decided to create a category for the media industry. Its new company, Future Media, is expected to become the latest media option for advertisers who wish to communicate with consumers shopping in the store.

Partho Dasgupta, Chief Executive Officer- Future Media, says, "There are differences in the evolution of the retail medium in different markets. There are companies that start from street signage and then come into the malls; in our case we are going from the malls to the outdoor business."

Considering that the space already belongs to the retailer, it is a question of extending the same to advertisers. Future Group has such space at its 150-odd stores across 33 cities in the country.

"The space is already ours so we don't want to start this business by acquiring rights like the others in the outdoor business," says Dasgupta.

Retailers are luring advertisers to tap into the opportunities the retail space offers. "You are communicating to the consumer when and where it matters — at the time of making a purchase decision," says Dasgupta.

The retailer wants to develop retail space as the latest outdoor media option and is building a team of people for this purpose.

While there have been reports of Future tying up with an existing media player (the WPP agencies), the retailer also wants to rope in people experienced in the media business.

"The media business runs on people and we are getting people who have the knowledge of media," says Dasgupta (a former Times Now employee), who is now hunting for talent in media houses and television channels.

At the same time, Pantaloons realises that it needs a strategic partner to take it forward in the media business. "We have had huge interest generated and there are strategic partners who want to do business with us in this area," says Dasgupta.

Apart from somebody who has the expertise in the media business, the retailer is also scouting for a technology partner to give it the necessary support in its operations. Says Ravi Kiran, CEO of Starcom, "Apart from finding a technology partner, Pantaloons being the largest retailer should also look for a partner who has knowledge of the effectiveness of this medium."

Retail media is an active platform unlike outdoor media. Finding the right partner is going to be crucial for the largest retailer in the country.

Considering its competitors such as Spencer's, Shoppers' Stop and Fabmall have already found strategic partners, it is time the Future Group found one. (Spencer's and Fabmall have tied up with Tag Media Network - a joint venture company forged with the Maa Group.)

According to Bunty Peerbhoy, Chairman of the Maa Group: "The secret of success in this business is the ability to understand the shopper.

It is absolutely essential to have shoppers' inputs and to understand the retail environment."

The Maa group can give Tag Media the necessary inputs through its associate division of RAMMS, which has been giving retail solutions at the point of purchase for the last 15 years.

Tag Media being a Maa Group company will take inputs from RAMMS for creating its in-store TV network. Shoppers' Stop has also found a technology partner in Flash Media, the creators of digital signage. Besides, a form of auditing into this medium has also come into play to measure its viability.

Pantaloon is exploring the possibilities of innovation through this medium, apart from using digital signage, audio and large-format television sets to reach out to its shoppers.

"We could be using the Blue Tooth technology and tie up with telecom operators to reach out to our consumers while they are shopping," says Dasgupta. There is also a possibility of tying up with a radio station to create exclusive content for its stores.

The advertising rates charged would depend on the location, content and number of visitors expected at a particular format. Brands already in the store could be given discount deals.

The advertisers would also comprise non-store brands in areas such as telecom and financial services. Further extensions in the business are expected when Pantaloon (Future Group's retail brand) bids for outdoor media space on behalf of clients — from amusement parks and to mall owners. "The outdoor business is fairly classical and is a reasonably simple business for any retailer to venture into," observes Kiran of Starcom.

Says Atul Hegde, COO, Vyas Giannetti Creative, "Media is a logical extension for retailers. In the case of Pantaloon, its sheer scale and presence would in itself help in the creation of a new media option. Besides, outdoors is an ignored and unorganised sector and a large retailer will add growth to this segment."

Considering there are success stories of retailers turning media owners (for instance Tesco Media) in other markets, the Future Group could also find it a lucrative business opportunity.

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