E-commerce still finding its way

I have the option of co-sponsoring a motor-sporting event. Does it make sense?

Rajat Goel, New Delhi

Rajat, I wish you had indicated the business vertical you work in. Generically speaking, I do believe motor-sporting events are good occasions to brand. It is, however, important to maintain the integrity of the product with the integrity of the event. A motor-sporting event is an excellent location to brand everything from engine oil to motorcars and motorcycles. And maybe even sunscreen lotion. But not a potato chip for the moment.

The auto sector in India, which already has 662 variants on domestic roads, can use these events to good advantage. The nodal event of them all will, of course, be the Noida F1 circuit event. Enjoy the passion!

What is the most common reason for brand repositioning? 

Shonali Kapoor, New Delhi

Shonali, a brand goes in for re-positioning for several reasons. It could be because the competitive framework of the market has changed dramatically and the brand needs to stay relevant and original under the new circumstances. Yet another reason could be the action of corporate mergers and acquisitions. It could even be because the brand owners want to rejig the image of the brand altogether.

The most common reason, however, is that of wanting to get more aggressive, relevant and contemporary in a new, competitive market situation. The reality is that consumers change. Marketers and brands change slower than their consumers. To keep pace with fast-changing consumers, brands would also need to go in for re-positioning exercises.

Where is e-commerce headed in a country like India? A dead-end?

Bhaskar K. Rao, Mumbai

Bhaskar, that question seems to pack a lot of pain. I am not negative about this, though.

I agree that e-commerce is an old buzzword in India today. It had tremendous resonance in the B2B business space before the dotcom bust. Today, however, it is a much more mature arena that depends not on eyeballs and clicks, but on solid business transactions that are getting more and more monetised. E-commerce platforms today depend largely on actual physical transactions than on advertising and eyeballs and virtual click revenues.

To that extent, e-commerce in India today, in both the B2B and B2C avatars, is more mature and robust in its business models.

Growth trends are dependent on category. Some categories such as online ticketing are big on growth and percolation. The IRCTC is a classic example.  However, last-mile delivery issues still persist in some categories. Anything that you are able to fulfil completely on the Internet, from choosing to buying and delivery, works best. E-tickets are classic examples. Where a courier delivery is involved is where there is a struggle. And when the cinema theatre adds a Rs 20 ‘convenience charge' on e-tickets, it bites a bit more than it must.

Players in the category are still learning. Learning to grope and cope.

Do married star-couples work better in brand endorsement or do the unmarried ones?

S.S. Saravanan, Trichy

Saro (I am sure friends call you that, and am risking the appellation), when you pair a completely new couple who have nothing whatsoever to do with one another (be it in terms of marriage, open relationship or for that matter, even clandestine relationship), the chemistry in a piece of advertising is that much more. Consumers love the chemistry between models in lifestyle advertising, and not the lack of it. Sadly, a marriage or a relationship sublimates chemistry to a lowest common denominator level in matters of sheer advertising.

When new models work together in an ad – for instance, Genelia D'Souza and Virat Kohli for Fastrack – it works that much better. If I was to take an example from the same stable of Titan, I do believe Amitabh and Jaya work that much less.

What's the gifting market potential in India?

Sidharth Keshav, Patna

Sidharth, the gifting market in India is a large one. Any estimates are really under-estimates. Recent numbers put the market size at some Rs 4,000 crore.

Gifting adopts many avatars in India. There is festival gifting that perks up during Diwali, Dussehra and Raksha Bandhan and 26 other prominent gift-oriented festivals celebrated in the country. Then there is the wedding gifting season. Birthdays are also occasions for gifting. Add to it corporate gifting and bureaucratic gifting, and you have a Pandora's box of gifting occasions in India.

Gifts themselves are of myriad kinds. They cover the gamut from fruits, dry fruits, sweets and clothes to jewellery, auto, and more.

Every brand in every category can aim for a piece of this big pie.

In sum, what is a good brand practice?

Jolly Sinha, Mumbai

Jolly, a good brand is one that treats its customers as friends. A brand can never exploit its customer. It is, therefore, important to build brands and brand practice with care and integrity. Just don't work too hard to push the brand message. If your message is good, it will find its way on its own. Build a good message first. Give it a nudge in the beginning for sure, but let it be after that.

The merit of good branding is in the brand thought and promise, rather than the process that makes it popular.

Harish Bijoor is a business strategy specialist and CEO, Harish Bijoor Consults Inc.

E-mail: askharishbijoor@gmail.com

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