TUESDAY, MAY 15, 2018 W W W. F I N A N C I A L E X P R E S S . C O M BLOGGER’S PARK P2 BRANDS WHO SHATTER THE NORM CONNECT BETTER WITH MILLENNIALS, SAYS THE SOCIAL STREET’S MANDEEP MALHOTRA T W I T T E R : @ F E B R A N D WA G O N FA C E B O O K : F E B R A N D WA G O N REVIEW CORNER P3 FACE OFF P3 V Mart’s new ad with its tongue-in-cheek storyline and celebrity starcast connects well Amit Sinha on how Paytm Mall is working on the offline-online divide and creating seamless experiences for retailers ‘WE WANT TO CREATE ENDLESS AISLES’ IN THE NEWS Traditional methods versus technology Walmart invests in Flipkart Walmart will pay approximately $16 billion for an initial stake of 77% in Flipkart,subject to regulatory approvals.While Flipkart’s co-founder Sachin Bansal has sold his 5.5% stake to Walmart and exited the company,Binny Bansal will stay. Swati Mohan joins Netflix India Having worked previously at National Geographic and Fox Networks Group as country manager, she joins the video streaming platform as director,marketing. Wavemaker gets Rabe Iyer aboard Set to join as MENA CEO from June 10, Iyerwill relocate to Dubai.Prior to this, he was MD, Motivator.GroupM India is yet to announce his successor at Motivator. Kantar Analytics Practice launched WPP has combined the analytics teams from Kantar and GroupM in India to form this combined practice.Sunder Muthuraman will take over as CEO,APAC and global chief client officer,Kantar. Riding the corporate route SHINMIN.BALI @expressindia.com I TIS ONLYrecentlythat mobilityas a sector has become a hot topic in the market. In earlier times, the reliance on privately-owned vehicles used to be high and public transport was the only fall-back option. A taxi service was called in only for‘rich’ moments, trips to and from the airport or when one had to travel at odd hours. This remained the case until ridehailing tech companies like Ola and Uber entered the scene a few years back with the proposition of highlyattractive prices,ease of use and convenience. Many local players such asTabCab or City CoolCab, for example, were caught napping for the large part. Consumers quickly adapted to the attractive offerings and highly competitive prices of tech cab fleets.However,the B2B operation of local players was hard to disrupt, with their long-term relationships with clients and a systematic movement of people versus the unpredictable booking spectrum that can be seen on the B2C side. But the threat from the Ubers of the world is real. So how are traditional cab service providers gearing up for survival in the midst of intense techled competition? To counter pop culture aggregators like Ola and Uber, local cab rental companies are going beyond great price deals to keep customers, particularly corporate, from straying Treating them right Meru Cabs, for one, has ramped up its focus on B2B operations,which currently contribute 30% of revenue for the company (estimated to cross 50% over the next12-18months).Butifcombinedwith the revenue contributed by Employee Transportation Services from its group Havas Media bags Netmeds.com The account will be handled out of the agency’s Bengaluru office led by Saurabh Jain,VP — South, Havas Media India. Vikas Purohit elevated as CEO, Tata CliQ He takes over from Ashutosh Pandey, who is set to join Mahindra Group.Prior to this, Purohit was COO at Tata CliQ. Sunil Kumaran to lead Thwink Big Big FM has appointed Sunil Kumaran as country head of Thwink Big, the content studio and talent incubator.Prior to this,he was with DAN’s The Story Lab. SPN's upcoming Marathi GEC gets Ajay Bhalwankar Priorto joining the upcoming channel as business head,hewas creative directorat Sony Entertainment Television.He had joined SPN in 2014. Bang in the Middle bags ResMed The agencywill handle the brand’s digital communication. ANIRBAN.ROYCHOUDHURY @expressindia.com T HE REGIONAL BROADCAST space is as dynamic today as its Hindi counterparts, with viewers now having a wide range of vernacular offerings to choose from. India loves its local dialect; about 59% of Indians communicate in regional languages while 40% prefer Hindi — which speaks for the potentialoflocallanguageprogramming on TV. National broadcasters are also broadening theirhorizons beyond Hindi channels byproviding qualitycontent in the regional space. Viewers can see Mahesh Manjrekar hosting the Marathi version of the reality show Bigg Boss, while Kamal Haasan gears up forthe second edition of itsTamilversion.Orconsidercricket icon SachinTendulkar,whowas recentlyseen in the grand finale of the Sourav Ganguly-hosted Bengali show, Dadagiri Unlimited. company Vlink Fleet Solutions, the B2B revenue ramps up to about 40-45%. Another car rental company Carzonrent’sbusinessisrootedintheB2Bspace, with it contributing 85% of the revenue. Within this, airport is a significant business accounting for 20-23%. Realising the importance of the role that technologywill playin making mobilityservices accessible and easier to use, Carzonrent acquired RidingO (a cloud-based ridesharing platform) about threeyears ago. The company has since then increased the tech team strength at RidingO to 35 engineers. “Our annual expenditure is about $3-3.5 million on building technology,” provides Rajiv Vij, MD and CEO,Carzonrent. “The industryhas beengrow- ing at 14-15% annually (B2B). At Carzonrent, we have had a CAGR of 24% over the years.” Carzonrent is currently investing 2.5% of its revenue in training its chauffeurs — the driver-partner aspect where tech companies have usually faced a lot of issues. WhatUberandOladidintheB2Csegmentintermsoftheirpricingstrategy,in a race to grab the bigger chunk of the market, is not the strategy that can be adopted in a sustainable fashion in the B2B space. Price alone does not guarantee clients to consider one player over another,as factors of qualityand reliability gain priority. Nilesh Sangoi, CEO, Meru Cabs points out that clients are willing to look beyondprice.“ForB2Bclients,ourbiggest strength is transparent pricing, honest billing and overall efficiencyin services,” he says.“Clients see a significant saving in their transportation spends, even though our rates may be higher than other service providers.” Going beyond the price wars Players like Uber and Ola are realising that the product will need to suit client needs and a price war is nowhere near sustainable. Some challenges are where companies say they would rather have a secretarybook the cab fora seniorexecutive instead of the executive doing it herself/himself. To serve this, Ola’s Dashboard allows a guest booking where a secretary or an administrator from the employer’s office can book the ride on an executive’s behalf. Similarly, the Uber for Business platform was revamped last year to incorporate user feedback. Now, group-based access levels can be created along with customised programs,depending on the travelling employee’s needs. ■ Continued on Page 2 The action-packed hinterland With rising competition in the regional GEC space, investment across local content has gone up significantly. How are broadcasters upping their game and how is the programming shaping up? THE OVERALL SIZE of the taxi market in India is approximately $10 billion and is expected to reach$40billionby2030.The corporate or B2B space, such as employee transportation,bus services, car rental services or intercitytravel,isthelargestsegmentof this market. There are more than 2.1 million registered taxis in the top 100 cities in India, out of which 80-90% vehicles operate in the B2B space. New technology players like Uber and Ola have revolutionised thetaximarketinIndia.Bothcompanies have deployed over $2 billion in the Indian market and have created an inventory of over seven lakh cabs. They have achieved a combinedrunraterevenueof$1.5 billion, catering to three million trips perday.It is expected that the numberof tripswill increase to 10 million in next 12 years in the taxi segment alone, mainly due to rising urban population, rising disposableincomeandincreaseinper capita trip rate. However, these playersarestilltryingtoestablisha foothold in the B2B space and devising new strategies to modify their services. In India, more than 95% of mobility solutions in the B2B space for services are largely handled byregional players,which are highly fragmented and relationship-driven, leading to inefficiencies and leakages in the system. Corporations are looking for smarter solutions rather than just a dedicated vehicle with a driver. The future of mobility in the B2B space will transition to companies that can offer techenabled customised solutions for corporate customers. ■ Continued on Page 2 sation started happening across the board,and that resulted in an increase in demand for content,”explains Abhishek Rege,CEO,Endemol Shine India.The rise indemandhasresultedinariseininvestment too.Primetime,which used to start at 6:30 pm earlier and ended at around 10-10:30 pm,has now gone up to 11:30 pm in most markets. It’s all about the money The local landscape General entertainment channels contribute 54% of the totalTVviewership of which 30% comes from regional channels,as per BARC India.“National broadcasters forayed into regional markets with tried and tested formats which caughtimmediateattention,”notesRajiv Dubey,head — media,Dabur. Then there’s Viacom18’s acquisition of Prism TV, which owned and operated five regional channels and then rebranded them as Colors Kannada,Colors Marathi, Colors Bangla, Colors Odia and Colors Gujarati. The joint venture between the New York-headquartered IN PERSPECTIVE JASPAL SINGH (Clockwise) Stills from Bigg Boss, Enga Veetu Mappillai and Potol Kumar Gaanwala media giant Viacom and Mukesh Ambani’s TV18 followed the acquisition with organic launches — Colors Super (Kannada) and Colors Tamil. “Regional is averyexciting place to be in because it gives you a lot of liberty to experiment at a fraction of the cost compared to a Hindi GEC,” says Ravish Kumar,head — regional entertainment, Viacom18.Regional broadcast currently contributes about 25% to Viacom18’s total revenue. There are several factors that have contributed to this growth. “Since BARC India came in and meters went deep, a justifiable moneti- The scale too has gone up. Viacom18 is doing the remake of Shani for the Kannada market, for which it is using the same sets used by the Hindi show. Sun TV, the leader in the Tamil market, charges between `45,000-60,000 fora 10 second ad slot during primetime while other regional leaders Colors Kannada and Star Jalsha command around `22,000 and `20,000,respectively. While broadcasters are spending on producing quality content, print media still commands a larger pie of ad dollars. But the onus is on broadcasters to bring print advertisers toTV.“The moment you willmovethemetricstowardsgrossviewershipinmillionsiswhenwewillseeprint advertisers moving toTV,”says Kumar. Dubeyagrees that regional television is cost effective for a brand. Dabur is the title sponsor of the Marathi version of Bigg Boss and despite the huge overlap with Hindi in Maharashtra,he sees merit intheassociation.“InMaharashtra,ifyou leave out Mumbai and Nagpur, Marathi is the primarylanguage andviewers love to consume content created in the local language which features local stars,” Dubeysays.Endemol-producedBiggBoss is the most expensive property in the regional market. ■ Continued on Page 2
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