Hope, realism and the allure of ayurveda

The game-changing events of 2017 that could shape the world of brands in the new year

Like every year 2017 brought its share of highs and lows. But some events stood out, marked by the spotlight as it were. These events will shadow us through 2018, influencing consumption behaviour, advertising and marketing in a myriad ways. Here is a quick look at what we need to watch out for and what we could look forward to:

The good or the bad tax

One of the most important events of 2017 was the implementation of GST (Goods & Services Tax). While it held out the promise of simplifying taxes, its execution sparked a huge debate. Small and medium sized entrepreneurs found it a hurdle, while large MNCs found that it affected the volume game. Among the most impacted was the confectionery and biscuit market. Even the eating-out and restaurants space has had to undergo GST-led corrections. While the new tax is here to stay I hope that businesses in 2018 will embrace this change and learn to work around it.

The Patanjali paradigm

This one company, one brand has managed to overhaul the FMCG category. The key change has been converting nonbrand users into brand users. Patanjali has managed to bring a number of users of unbranded products in the category into the larger consumer net. The result is rapid market expansion. The pie is now bigger and consists of more consumers, who are now brand-conscious. This is good news for every category and not just FMCG because it opens up a host of new opportunities. The Patanjali effect will spill over into a wider range of products and segments, it will also bring greater awareness among consumers who will demand better quality and be more open to experimenting and trying other brands. Other ayurvedic brands like, Ayush, Himalaya will step up their efforts to win consumers over to their corner in 2018.

The magic of ayurveda

The most important thing to watch out in 2018 is the sprouting of start-ups in the field of ayurveda. We already have several brands on the bandwagon. Start-ups (juices, beauty products, food and other areas) will attempt to create the perfect blend of ancient ayurvedic principles and contemporary lifestyles through their products.

The business of advertising

Both traditional as well as digital media are growing at a steady pace and this is expected to continue. However there is another side to the advertising story that we will see a lot of in 2018.

Margins are shrinking in traditional advertising and the business is losing sheen. The talent pool is decreasing as more and more people are migrating to film making or turning entrepreneurs. People are also choosing to work with the Facebooks and Googles of the world. Even within advertising the talent is shifting from huge agencies to independent companies, as the latter are more aggressive and more flexible than the big hands in the business.

The digital dilemma

While digital is surely the next big thing, agencies will face more pressure from two quadrants. One being, their lack of understanding of the brand and other being an identity issue; digital shops are neither technology driven nor do they possess the advertising acumen and this leads to a skewed view. Here there is an urgent need for consolidation and transformation.

Content will play a key role in the entire digital transformation of the brand but, many of the new shops are still unable to understand what the brand stands for. Content creation is needs to resonate with the brand POV. It does not mean long TV ads in the name of digital. It isn’t about making cheaper TV ads. Neither is it about creating highly cryptic content that hardly has any brand relevance.

Achieving the right connection is essential and it will come about only if agencies can understand the classic triangle of brand personality, audience expectations and creativity. Brands too need to mature and shed their rigid, hardselling side and encourage creativity. Especially the e-commerce players that are so focused on discounts. If they continue down this path they will end up like the airlines’ category where it is all a pricing game. For this brand affinity is the key.

I shall close this article with a memorable event of 2017 that will keep us rejuvenated through 2018. Piyush Pandey and Prasoon Pandey this December won the most coveted, lifetime Lion of St. Mark award at the Cannes. First Asians to have received this honour, they have made us all proud.