THE FINANCIAL EXPRESS TUESDAY | MARCH 14, 2017 FIRST STOP FOR MARKETING, ADVERTISING AND MEDIA @febrandwagon FE BrandWagon Declan Moore of National Geographic Partners reveals the company’s plans for India Cello India’s latest TVC for its Exam Expert range scores well on the creative aspect PAGE 3 A H M E D A B A D Shop CJ India’s Upamanyu Bhattacharya on businesses and the age of digitisation PAGE 2 PAGE 3 B E N G A L U R U C H A N D I G A R H C H E N N A I H Y D E R A B A D K O C H I K O L K A T A L U C K N O W M U M B A I N E W D E L H I P U N E IN THE NEWS Amitabh Bachchan joins OnePlus as ‘OnePlus Star’ OnePlus, a global mobile technology company, has appointed Amitabh Bachchan as its first-ever OnePlus Star. Pete Lau, CEO and founder of OnePlus, said, “As the brand grows to the next level, we aim to continue to bond with our community in a more meaningful and engaging way.” The actor will take the brand’s Never Settle thought forward. Discovery appoints India Advisory Board Discovery Networks Asia Pacific has appointed a special India Advisory Board. This first of its kind board for the company outside the US, will provide counsel and insight to the India leadership team on strategic matters. The members on the board include Dr S Narayan, Naina Lal Kidwai and Ali Hussein. Netflix announces three partnerships in India DTH providers Airtel and Videocon d2h, and telecom player Vodafone have signed partnership deals with Netflix. The video streaming company will partner with Vodafone for payment integration. Launched in India in 2016, Netflix is aiming to boost its subscriber base here. Godrej Appliances unveils new brand philosophy Godrej Appliances has unveiled the brand philosophy of Soch ke banaya hai to fuel its new communication strategy. The brand, which has allocated ad spends of R15 crore for the summer season, plans to capture a market share of 20% in the 5-star and inverter AC segment by the year 2018. The Game of Wallets The jackpot that mobile wallets hit post November 8 is, by no means, time for them to be lulled into complacency. An external event triggering steep growth can only last for so long and the ground work for a changed digital payment dynamic has only just begun Shinmin.Bali@expressindia.com A historic moment for India, the evening of November 8, 2016 had the Prime Minister declaring the then prevalent R500 and R1,000 notes as invalid currency Not surprisingly the . , aftermath of demonetisation was confusion and panic for the general populace. Even as the nation tried to make sense of it all, there was a select bunch of businesses that saw opportunity hidden in this mayhem. Yes, mobile wallet players seem to have been the biggest gainers of the demonetisation event. The ridiculous sounding growth figures, user base numbers, transaction rates over a span of four months since, is testament of how atypical demonetisation as an event is. Players such as Paytm, MobiKwik and FreeCharge wasted no time in amplifying their communication to the audience, offering themselves up as the solution to the cashless woes. Especially Paytm, which was out with full page ads in leadingnewspapersthenextday . ReserveBankof Indiaprovidesthatthe volume of PPI (Prepaid Payment Instruments) transactions went from 126.9 million in October 2016 to 169.03 million in November 2016. The volume soared to 269.01 million for December 2016. PPI here is inclusive of mobile wallets, PPI cards and paper vouchers. Mobile wallets transactions in particular were at 99.57 million in volume in October 2016, which rose to 138.09 million in November 2016 and finally reached 213.11 million in December 2016. This data pertains to Mumbai, New Delhi and Chennai. But is this windfall sustainable? Now that the waters have receded somewhat, how are players Good times ahead? I NDIAhasalwaysbeenacash-based economy,withe-payments contributingmarginallytoretail transactionsinthecountry .The differentformsof e-payments(cards, wiretransfersandrealtimepayment services)havebeengrowinginthe rangeof 20-30%y-o-yoverthelastfive years.Whilebankshavebeenprimary driversof digitisationinpayments, non-bankplayersandmobilewallets startedgainingsignificanceoverthe lasttwotothreeyearsamongst customersandmerchants. Mobilewalletplayerssimplifiedthe userexperienceforbothcustomers andmerchantsandscaledupinan asset-lightway .Incentivesfor customers,promotionalpricingfor merchantsandAadhaar-basedKYC haveenabledarapidscale-up. Cashcrunchasaresultof demonetisationfurtheraccelerated thegrowthof electronicpaymentsand gearing up to keep up the momentum? Blessing in disguise Wallets had their jobs cut out in the early days of demonetisation. They had to reach audiences beyond what they had acquiredtillthenandmakeacasefortheir offerings while trying to be top of mind as well. One of the grouses of the public was about not having cash for everyday use; DHEERAJ ANEJA IN instrumentssuchascardsandwallets. Withcashcomingbackincirculation, digitaltransactionsthathadgrownas muchasthreetofivetimesduring demonetisationarebeginningtocome downbutareatelevatedlevels comparedtopre-demonetisationand areexpectedtogrowfurther. InstitutionalinitiativessuchasBHIM, BharatQR,UPI,BPPS,Aadhaar-based merchantpaymentsanda rationalisationof transactionpricing isexpectedtoacceleratetheadoption of digitalpayments. M-walletcompaniesthathave alreadytransitionedtobecoming paymentsbankswillbeableto participateintheupcomingopenpaymentssystemsbuiltonUPI, AadhaarandBharatQR,thereby this included everything from milk purchases to paying utility bills to grocery shopping. This is where wallets provided themselvesaspaymentfacilitators. FreeCharge in partnership with Snapdeal launched Wallet on Delivery within 48 hours of demonetisation. Customers could simply pay on their wallet at the point of delivery Another feature . through a tie-up with Snapdeal was improvingtheircustomer propositions.Inthenearterm,mwalletswillgainadoptionamong consumerandmerchants.However,in thelongterm,withgreateradoptionof interoperableplatformslikeBHIM, BBPS,UPIandBharatQR,wallet playerswillbechallengedandonlyone ortwoplayersmayremain.Globally , paymentsasastandalonebusiness operatesatalowmarginandisa businessof scale.Giventhepressureon transactionpricing,market competitivenessandfragmentation, theeventualbusinessmodelmaynotbe builtontheprofitpoolsassociatedwith paymentsbutbyenablingadjacent revenueopportunitiessuchaslending anddistributionof financialandnonfinancialproducts. Thepaymentsspace,ingeneral,will continuetogrowonthebackof significantinstitutionalinnovation, regulatoryinnovationandoverall consumeradoption.Thehypercompetitiveindustry,coupledwith thinmarginsandhighoverheadcosts mayleadtoconsolidation. Theauthorisdirector—payments practice,EYIndia Change via FreeCharge, where the wallet could be used not only for payments, but also to receive change after paying through currency notes. Freecharge was apparently signing up a merchant every 30secondswith60%of thenewmerchants seeing the first payment happen within thefirsthourof signingup. ■ Continued on Page 2 Pops’ HyperCollective: Symbolic of changing times HyperCollective, KV Sridhar’s entrepreneurial venture, builds a collaborative machinery to cater to the changing needs of the market HyperCollective’s partnersincrime Meghna.Sharma@expressindia.com I T’S a jungle out there! And that isn’t just a Randy Newman song — the statement equally applies to the startup haven that India has currently become. And a crowded one at that. The M&E industry is no stranger to the start-up culture, with many prominent admen exiting large networks to start their own firms — the latest in the list being KV Sridhar, who had moved on as chief creative officer at SapientNitro a HyperCollective’s KV Sridhar with members and founders of partnering firms few months back. Sridhar, fondly called Pops by industry folk, has commenced operations at his self-funded venture — HyperCollective, which essentially is a collaboration of specialist companies and agencies. Its core area of expertise will be content, data, design and technology After all, too many players mush. rooming all over the place can sometimes lead to unhealthy competition. Taking a cue from this, Sridhar has started HyperCollective, an umbrella ᔢ 17Seven ᔢ Candid Marketing ᔢ Experience Commerce ᔢ Fanatics ᔢ Made by Fire ᔢ Meraki VR Studio ᔢ Moonraft Innovation Labs ᔢ NetBramha Studios ᔢ Ormax ᔢ Ping Network ᔢ Phoenix TalentX Branding ᔢ Simple Creative Inc ᔢ Sharpener ᔢ Supari Studios ᔢ triggerbridge ᔢ Tookitaki ᔢ Umbrella Design ᔢ Windchimes Communications ᔢ Wolfzhowl Strategic Instigations outfit which will see a collaboration of 21 companies, with each specialising in fields such as data analytics, technology , new-age marketing solutions, content, virtual reality etc. , On announcing the launch of the col- laborative communication technology company Pops highlights that there is a , need to plug the gap between creative and technology . A challenge faced by agencies and brands across the spectrum, currently . “It is all about collaboration versus competition today We cannot live in silos if . we want to achieve our dreams,” says Pops. “Look at Netflix or Hotstar; the platforms are collaborative in nature. One can notice collaboration is a common theme across categories now. Collaboration is the future.” The 21 partner agencies who are independent experts in their respective fields, believe that the collaboration is a win-win for all as it lets them stay committed to the cause of wanting to make a genuine difference to clients. In return, clients will see a difference that they never felt through past transactional agency relationships. ■ Continued on Page 2
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.