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Innovation, design & experience tech needed to meet consumer expectations in new normal: Report

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Mumbai: It is widely accepted that Covid-19 has accelerated digitisation across every industry in every market. 2020 saw marketers double down on innovating their products and services specifically to pivot in response to Covid-19. 83 per cent of marketers agree that there can no longer be any disconnect between what a brand promises and what it delivers for its customers, communities, and employees, according to a new annual study by global creative experience agency Isobar, assessing the evolution of customer experience design.

The report ‘Isobar CX Survey 2021: The Rise of Connected Experience’ with insights from over 800 global CMO’s indicates clear agreement between CMOs globally of a permanently transformed approach to marketing post-covid. 86 per cent of marketers agree that every touchpoint can and should tell the brand story, from comms to commerce. Innovation, integration of the brand promise, and delightful interactions enhanced by technology were named as the top three key ingredients needed in the creation of brand experiences. 82 per cent of marketers revealed they are investing or have already invested in creativity and digital technologies to create brand differentiation. Research was conducted in August 2021 via online questionnaires completed by 800 CMOs and marketing directors in eight markets, including India, for this purpose.

Alternative sensorial brand experiences are on the rise with 86 per cent of marketers saying creating brand design systems for a multi-sensory world is increasingly important, and 36 per cent asking specifically for new craft skills designed for a multi-sensory world from their agency partner. In a first for the industry, Isobar has validated some of these assumptions with CMOs stating that creativity is critical to differentiation in this digital world, with the boundaries of content, commerce, and culture blurring irrevocably.

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The results reveal a ‘new normal’ for marketers, with the overwhelming majority in agreement that innovation, design, and experience technologies are needed to meet consumer expectations post-covid. The results overwhelmingly show an increase in creating new sensorial experiences, delivered through experience technologies and demanding a new set of craft skills that are imperative to creating differentiation.

Touch-free technologies, gestural technologies, voice interfaces, and virtual brand properties including avatars, idols, products experiences, and configurators are all being increasingly adopted. This is an extension of the findings of the report from 2020 that saw significant marketer adoption of ‘experience technologies’ such as voice, AR, and IoT alongside a significant increase in the value CMOs placed on ideas and innovation in shaping CX strategy. 

“What stands out is that experience has become an even bigger focus for how consumers are making choices around the brands they invite into their lives. The connected future has arrived—innovation and new experience technologies are now critical in creating differentiation and growth. But it’s a connected experience – creativity that crosses touchpoints, senses, and communities, and that is driving this future. This survey is a call to arms for everyone in the industry to step up or be lost in a sea of sameness,” said dentsu head of innovation and design and Isobar managing partner Sven Huberts.

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Authored by Isobar’s global teams of creative and innovation experts, the report aims to offer insight into how the marketing industry is responding to the changing needs of brands today and to provide inspiration and tools to help the creation of delightful and differentiated experiences of tomorrow.

“The term ‘Experience’ has changed forever. In a post-pandemic world, for a brand to lead from a customer-centric position, experiences can no longer afford to be one-dimensional. The findings of the survey published in ‘The Rise Of Connected Experience’ report, will give readers a more comprehensive view of a customer’s journey and deep insights into what is driving customer experience,” added dentsu Creative India CEO Amit Wadhwa.

The report describes the fundamental changes to the way brands are increasingly being built and uses global case studies from Isobar’s client partners including KFC, Philips, Beats, and Volkswagen to illustrate how marketers are shifting strategy. Some of the key changes are that there can no longer be any disconnect between what a brand promises and what customer experiences, and virtual experiences will become as real, human, and valuable as offline experiences. It also summarised that the boundaries between content and commerce, shopping, and storytelling will be blurred beyond recognition. The report also predicts that as digital experiences are called on to build distinctive brand encounters, a new skill set will be needed at the intersection of craft and innovation.

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“The pandemic upended a marketer’s playbook, challenging leaders to position themselves at the forefront of the longer-term shifts in consumer behaviour that result from disruption. However, even at this time of flux, it’s possible to regain a strong foothold and find familiarity by keeping a real-time pulse on evolving customer preferences. Customers are more trusting of what technology can do and they are seeking new experiences that line up with their renewed way of life. I believe the Isobar CX Survey is the ideal destination to source for insights on driving growth in a post-Covid world,” Isobar India group CEO Heeru Dingra commented. 

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Brands

Kwality Wall’s reports standalone losses following strategic HUL demerger

Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales

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MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.

For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.

Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.

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Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.

Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.

Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.

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Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.

Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.

The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.

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