It’s time to review the most significant industry developments as the year 2022 draws to a close. Adgully is reviewing the year 2022 for M&E, Advertising, Digital, Marketing, PR & Communications, along with leading names in the industry as part of its annual Rewind series.
The retail sector saw a big revival this year, with consumers returning in drives, especially during the festive period, after two years of subdued sentiments due to the pandemic. The e-commerce sector also consolidated its gains seen during the pandemic period.
Recapping the year for the retail sector are Tata CLiQ Luxury, Westside Trent Ltd, Fabindia Ltd, and Amway India.
Brands have realised the importance of going online: Mohua Das Gupta, Head – Marketing, Tata CLiQ Luxury
Key trends and developments
E-commerce has been constantly evolving to cater to the needs of the consumer. With the help of technology, online platforms have been innovating to ensure they offer a seamless and personalised shopping experience.
Some of the significant trends witnessed in e-commerce in 2022 are as follows:
Focus on conscious consumption – Given how consumers today are cognizant of their consumption, there is a greater focus on sustainability by brands and e-commerce platforms to ensure that through their various initiatives they are giving back to the planet. At Tata CLiQ Luxury, we are committed to responsible business practices. In an endeavour to support our green goals, we have introduced the ‘circular packaging program”, which allows customers to return their empty packaging boxes after their purchase is received, thus enabling us to recover, refurbish, and reuse them.
The rise of D2C e-commerce – Brands have realised the importance of going online, given the reach and accessibility it offers. Consumers across the country have embraced online shopping and are actively seeking out products from brands across various categories that are not just limited to fashion and lifestyle. As a result, several D2C brands have forayed into the online space and are leveraging it to reach out to consumers across the country.
Live and social commerce – Shopping is a social experience and given the increasing amount of time that people spend online and on social media, platforms have leveraged the concept of social and live commerce. Live commerce is appealing given the kind of engagement it offers to consumers. It also helps brands attract newer and younger audiences. Similarly, social commerce has enabled brands to not only recruit new consumers but also drive product discovery.
Omnichannel strategy – As e-commerce strives towards offering the best possible shopping experience, the introduction of an omnichannel retail strategy that allows for a frictionless experience across platforms is a trend that has witnessed massive adoption.
While these trends will continue to influence e-commerce, the metaverse, artificial intelligence, augmented reality, Web 3.0, and voice search commands will also grow and shape the sector further in 2023.
Tata CLiQ Luxury’s performance in 2022
Tata CLiQ Luxury is India’s premier luxury lifestyle platform. As the leader in the omni-channel luxury sector in India, we’ve enabled and encouraged the shift in buying luxury online.
Our efforts are aimed at establishing the platform as a lifestyle destination for luxury shoppers. Hence, from gourmet to fitness, fashion to accessories, audio to coffee table books, a luxury consumer can shop for all this and more from a range of brands on the platform.
In 2022, we expanded our existing categories with the launch of new brands and also introduced new categories like home fitness. Aspinal of London, Baldinini, BCBG, Chiara Ferragni, Eugenia Kim, Kendall + Kylie (footwear), Liu Jo, Pollini, Loci, Mulberry, Phillipe Model Paris, Themoire, and Twinset are among the international brands we’ve launched on the platform. We’ve also introduced multi-brand luxury fashion houses like Le Mill and The Collective.
This year’s festive season has been really exciting for us, with an increase in the average order value for categories such as Indian designer wear, home, handbags, beauty kits, and products that are ideal for gifting. In addition to metro and Tier 1 cities, our strategy focused on customer acquisition in Tier 2 and Tier 3 markets, where we have seen an increase in demand. The non-metro markets contribute to almost 40% of the platform’s revenue.
The iconic Black Friday sale we held saw the platform’s sales increase by 70% over the previous year. Accessories, apparel, footwear, and watches were the most widely purchased categories during this sale event.
Apart from launching new brands and categories, our focus as a brand is on delivering an unparalleled customer experience across various touchpoints via content and commerce-led efforts. We’ve launched and built on brand IPs such as The Luxe Life and The Watch Society to help reinforce the brand’s positioning among our customers while also increasing awareness and reaching out to new audiences.
Overall, we have seen exceptional growth this year and have grown our portfolio even further with the addition of several new brands and categories. From luxury packaging and delivery services to personalised privilege programmes, we are constantly working towards offering an elevated online luxury shopping experience.
Building sustainable digital relationships with the community organically will be the next big trend: Umashan Naidoo, Head of Customer & Beauty, Westside Trent Ltd
Key trends and developments
Post lockdown, a key trend for most retailers has been agility. The retail sector currently needs to implement a clear and comprehensive business agility strategy more than any other industry. This can be achieved by opening more stores in new markets or using the digital landscape with differentiating content to engage new audiences for a wide reach. Businesses must give customers the freedom of choice from ordering to invoicing on any platform, whether it is a tablet, kiosk, mobile phone, or internet shopping, as the customer experience is a major differentiator.
Digital Transformation is equally important to survive the new normal. After the pandemic, the enormous shift toward online purchasing has exposed existing flaws in the current retail system such as how to quickly scale up and keep customers interested, how to serve socially disengaged customers, to name a few. Technology is widely available and reasonably priced, but what retailers decide to do with it is what counts.
Using content to articulate the brand’s lifestyle and building sustainable digital relationships with the community organically will be the next big trend as pushing discounts and offers doesn’t build a brand.
Rising emphasis on Tier 2-3 markets has been one of the most visible current retail developments: Ajay Kapoor, President Retail, Fabindia Ltd
Key trends and developments
The rising emphasis on Tier 2-3 markets has been one of the most visible current retail developments. This includes rationalising store rentals through talks with property owners and utilising a variety of delivery methods for the convenience of the client. Businesses are also leveraging the advantages of their e-commerce platform and providing customers with a variety of possibilities. Most retailers now have omni-channel distribution channels through their online and offline presence. Hybrid shopping converges the best of online and offline to create seamless customer journeys for greater agility across channels. With an emphasis on in-person experiences, retailers can leverage AR/ VR technology to create immersive shopping experiences, enriching the brand-consumer relationship.
The year 2023 will be crucial for brands to strengthen the above-mentioned consumer-centric retail strategies in order to prosper in the digitally-driven retail environment as customers adjust to these technological developments.
Fabindia’s performance in 2022
To continuously engage with its customers spread across demographics, Fabindia increased focus on Tier 2-3 markets. The brand has opened new outlets promptly in these cities – from Ambala and Tiruppur to Aizawl. When Fabindia compared foot traffic in metro areas with that in Tier 2 or tier 3 marketplaces, the brand witnessed that the former increased by 65% to 68%, while the latter increased by 95+%.
This festive season, we have also debuted the “NUIndian” collection, which features trendy silhouettes, slim fit kurtas with asymmetric necklines for men, and vibrant skirts & kurtas for women. In addition to clothing, we introduced an immersive personal care range called ‘Fabessentials’. Skincare, haircare, body and bath products, aromatherapy, and gift packages are all part of this clean beauty line.
We have also witnessed a substantial surge in internet traffic to our website, Fabindia.com, since the pandemic, and we have worked hard to create a consistent experience across channels. Recently, Fabindia also unveiled its sustainability programme, SHUNYA, with an emphasis on waste recycling and reuse as well as other measures in accordance with environmental responsibility.
The gig economy continues to be on the rise: Ajay Khanna, CMO, Amway India
Key trends and developments
This year, one of the biggest trends that we have witnessed is the consumers taking charge of their health with a focus on preventive healthcare. The no-compromise attitude of health-conscious, digitally savvy consumers has intrigued brands to innovate and offer wellness products and solutions supported by seamless and superior digital experience. Other trends that dominated through this year are:
Plant Based Nutrition: As per Kerry Study, 63% of Indian consumers are willing to buy plant-based food items regularly, which is a strong indicator of the market potential for plant-based nutrition products. Amway India’s Nutrilite range of products in the VMS and herbal category, backed by its strong ingredient story as well as the seed-to-supplement approach, echoes the sentiments of the health-conscious consumers.
Products with Herbal and Ayurveda ingredients: There is a sharp inclination for products with herbal and ayurvedic ingredients. As per a report, organic and natural branding would encourage more than 50% of consumers to opt for Vitamin Minerals Supplements (VMS) that have herbal & ayurvedic ingredients considering their familiarity and natural health benefits, which further widens the scope for the brands in the nutrition segment.
Personalisation: The heightened awareness of health has led to the growing acceptance of nutrition products, further resulting in the need for personalized nutrition solutions that are tailored to meet individuals’ specific health goals.
Healthy Beauty: There is a growing preference amongst the health-conscious consumers of today towards products that are enhanced with nutrients in the beauty segment. More than 80% of Indian consumers prefer beauty products with a combination of chemical-free, vegan, and plant-based claims, therefore opening a huge potential market for quality healthy beauty products in India. The Artistry Skin Nutrition anti-aging range is enriched with plant-based botanicals from Nutrilite farms and is a paraben-free, vegan skincare line powered by cutting-edge skin science and better manufacturing processes to ensure they are pure, safe, and effective.
Solution Based Approach: The wellness economy that includes products and services is currently pegged at over Rs 2,30,000 crore, which is growing at a CAGR of 9.8% over the last 5 years. Aligning to the ongoing market trends and catering to evolving consumer requirements, we at Amway plan to take a solution-led approach driven by communities, where we will encourage and enable our Amway direct selling partners to understand individual customer nutrition needs and suggest our high-quality products to meet the needs.
Rise of Gig economy: The gig economy continues to be on the rise, especially with the evolving digital age and growing millennials. As per a study by Niti Aayog, the Indian gig workforce is expected to expand to 23.5 million by 2029-30. And with the capability of generating entrepreneurial opportunities, Direct selling (DS) industry can play a vital role in supporting the Government of India’s efforts to make our country self-reliant.
Amway India’s performance in 2022
Addressing the evolving consumer needs and keeping up the momentum, Amway India has been consistently driving innovation by strengthening its existing product portfolio, foraying into newer segments, offering products in contemporary formats, accelerating research work through collaboration, and partnering with credible personalities to establish deeper engagement with consumers.
- Continuing to solidify our leadership in the nutrition: Through constant product innovation, Amway India for the first time introduced a range of nutrition supplements in trendy, tasty, convenient, and simplified formats like flavourful gummies under its flagship brand Nutrilite. These on-the-go nutrition solutions are designed to suit modern lifestyles of health-conscious consumers, especially the busy young millennials, to meet their everyday nutrition needs.
- Healthy Beauty with ingredient driven solutions: With the shift in the consumer’s preference towards high-performance and ingredient-driven solutions in the beauty segment, Amway repositioned its premium beauty brand Artistry into visibly healthy beauty and forayed into skin nutrition with Artistry Skin Nutrition Line. Enriched with plant-based botanicals from Nutrilite farms, Artistry Skin Nutrition is paraben-free, vegan skincare line powered by cutting-edge skin science and better manufacturing processes to ensure they are pure, safe, and effective.
- Led by science and innovation: Towards positioning Amway as a science-driven company and to further enhance the scientific credibility of its Nutrition range, Amway India partnered with premier institute IIT Bombay to accelerate research in the field of Nutraceuticals, Botanicals, and Herbal supplements and thus, provide evidence-based, scientific understanding on Nutrilite products.
- Leveraging brand ambassadors: To build a strong connection with health-conscious consumers and to gain deeper penetration in the market, Amway India is associated with credible personalities like megastar Amitabh Bachchan and Olympian Saikhom Mirabai Chanu, to promote its flagship nutrition brand Nutrilite. We also partnered with credible events like Filmfare Awards and Dadasaheb Phalke International Film Festival Awards targeting the cinephiles, besides sponsoring Cricket series to engage the sports enthusiasts.
Campaigns launched by Amway India in 2022
Reinforcing our offering in the nutrition and wellness space, the year 2022 saw a series of campaigns majorly centered around our largest brand Nutrilite, the world’s No. 1 selling vitamins and dietary supplements brand. One such campaign that has been the highlight for Amway India this year is ‘Khud Ko Do Ashirwaad’, promoting the importance of holistic wellbeing. Featuring Amway India’s brand ambassador, Amitabh Bachchan, the campaign personifies the essence of the nutrition & wellness brand, Nutrilite, and reflects the brand’s commitment to promoting holistic health in consumers, especially in women and youth.
Developed with catchy themes such as #Vijayibhava and #Urjawanbhava, the ‘Khud ko do Ashirwad’ campaign is powered by the powerful poetic narration by Amitabh Bachchan and conveys a thought-provoking message of empowering oneself with good health to deal with the daily challenges while unleashing inner potential and capabilities. The profound thought ‘Bless Yourself’ is beautifully articulated in all the films as it brings alive the elements of holistic well-being by blending the top key SKUs such as Nutrilite All Plant Protein, Nutrilite Daily, Nutrilite Salmon Omega, Nutrilite Cal Mag D Plus, and Nutrilite as a category.
The campaign involved a 360-degree integrated approach with a judicious mix of conventional and new-age media to capture the mind space of health-conscious consumers with a focus on women and youth. The marketing mix majorly comprised of digital and social media to tap the digital native customers and TV to capture a larger audience.
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