MAM
Loyalty marketing growing in India
MUMBAI: India‘s continued economic growth has fueled an emerging opportunity for brands and retailers to engage consumers, according to the new 2011 Colloquy Cross-Cultural Loyalty Study.
This research was carried out in collaboration with multichannel marketing services firm Epsilon International and LoyaltyOne, a provider of loyalty marketing services that recently entered the Indian consumer market.
Among the key findings for India is the importance of word-of-mouth (WoM) as compared to other countries surveyed. WOM conversations are rated at 7-8 on a 10 point scale, where 10 signifies that WOM conversations are “extremely important”, approximately, 15 – 25 per cent higher than developed countries. This is of great significance for brands looking to create early adopters and loyal ambassadors.
India also offers a significant socially accessible and connected consumer audience with a hundred million internet users more than half of whom (55 per cent) read product reviews online and only make a purchase based on the feedback, according to the Asian Digital Marketing Association (ADMA) report 2011.
LoyaltyOne India CMO Rathin Lahiri said, “The results of the study validate that there‘s never been a better time for brands in India to engage in meaningful relationships with their customers. First generation loyalty programs create a means to get to know customers better. With that knowledge brands can successfully adapt and build the type of lasting relationships that drive sustained growth.”
Other study highlights:
- Consumers in India have an engaged, energised, and enthusiastic attitude about their economic prospects, consumerism, brands and companies, and loyalty rewards programs. Over one-third (34 per cent) of Indians feel strongly that their economic prospects will improve over the next decade.
- While a sizeable 42 per cent of Indians belong to at least one reward programme, it is significantly lower than their American counterparts, 74 per cent of whom are enrolled in such programs.
- 20 to 33 per cent of Indian consumers are “extremely loyal” to their favorite brands across six major categories — clothing retailers, grocery retailers, financial services providers, dining, auto fuel and travel providers
- 56 per cent of Indians believe that most businesses can be trusted. This is significantly higher than all other countries surveyed.
- A high number of Indians (56 per cent) also seem to have inherent trust towards international brands over domestic brands.
- Email and text messages rank number one and two respectively as the preferred means of receiving marketing messages among India‘s middle class consumers, beating television and print advertising.
Epsilon VP sales, Asia Pacific Adrian Hoon said, “The opportunity for marketers in India is clear. The challenge, however, is to convert the Indian consumer‘s growing love affair for the brand into a longer term, sustainable and profitable relationship. As the role of word of mouth grows in an increasingly social environment, the gap between satisfaction and dissatisfaction has never been more pronounced. Brands that invest in understanding customers‘ engagement dynamics and engaging their hearts and minds will win big, in terms of perceived service and loyalty.”
LoyaltyOne president Bryan Pearson will provide additional research-based insights into the best ways for marketers to communicate with increasingly sophisticated Indian consumers when he serves as a featured presenter at the World Brand Congress in Mumbai on 25 November. Pearson‘s presentation is titled, ‘From the Mouth of India‘s Consumers: New Research into Attitudes about Loyalty‘.
Brands
Hocco crosses Rs 530cr revenue in two years
Sauce.vc-led Rs 100cr raise values ice cream brand at Rs 2,500cr pre-money as quick commerce hits 20 per cent of sales.
MUMBAI: Hocco has just scooped a seriously sweet milestone crossing the Rs 530 crore revenue mark in just two full years of operations. The fast-growing Indian ice cream and indulgence brand announced it has raised Rs 100 crore in fresh capital led by Sauce.vc. The round values the company at Rs 2,500 crore pre-money and underscores investor confidence in its rapid scale and distinctive India-first approach.
Founder Ankit Chona said the brand’s success stems from solving real Indian challenges extreme summer heat, fragmented cold chains and culturally rooted tastes. “In India, product development doesn’t end in the lab. It only ends when it survives the street,” he noted. This philosophy has produced viral hits such as Aamchi mango ice cream, BIX cake-sponge sandwiches, the Oh cone and culturally relevant collaborations like Haldiram’s Barfi and festive Modak specials.
Hocco currently operates manufacturing facilities in Ahmedabad and Panipat with a production capacity of approximately 3 lakh litres per day, running near full capacity in peak season. The fresh capital will help expand this to around 4.5 lakh litres per day.
Quick commerce has emerged as a major growth engine, now contributing ~20 per cent of overall business and growing nearly 2x year-on-year. The channel has boosted product discovery, increased consumption frequency and helped extend ice cream beyond its traditional seasonal limits.
Sauce.vc founder Manu Chandra said, “At Sauce, we believe that when you chance upon an outlier business, you double down with stronger conviction. We see Hocco as just that.”
With a strong innovation pipeline, deeper distribution and continued focus on cultural relevance, Hocco is entering its third year aiming to capture even more mind space and market share. In a category long dominated by legacy players, this young brand is proving that the coolest way to win is to build for India’s realities, one scoop, one street and one satisfied craving at a time.
