There was a time, a few years ago, when the retail sector was hit by the challenges posed by the life-changing Covid pandemic that swept the globe and had a huge impact on the economy. After 2023, the opportunities for retail and e-commerce have grown exponentially as the world has gone almost entirely digital and the shopper experience has changed as a result.
While 2023 brings renewed consumer confidence, challenges remain as countries grapple with fears of recession and volatile economic conditions. So, in a market that presents both opportunities and challenges, what kind of advertising can we expect from this industry?
Social media marketing is going to be a great place to be
According to a report by market research firm Technavio, the retail digital marketing market is expected to grow at a compound annual growth rate of 26.39% from 2022 to 2027, and the market size is expected to be $902.88 billion. APAC is estimated to contribute 41% of the global market growth during the forecast period.
“The rapid growth of social media is a major factor driving the growth of the global market share of digital retail marketing. Social media platforms allow websites to advertise to individuals or organizations on a larger scale than other advertising mediums. Advertisers can build brand awareness. users by posting posts and updates on brand pages that are shared with their network. Regular updates improve brand visibility and help acquire new customers, as well as increase awareness among existing customers The Covid-19 pandemic has significantly affected social media usage.
Vinay Chatlani, CEO of Soch Apparels in India, believes digital transformation is essential for retailers to stay focused. The outlook for Indian retail advertising in 2023 is expected to be greatly impacted by the ongoing digital transformation and increasing technology. Businesses must become digital first. Digital advertising such as online advertising, social media, email mail and influencer marketing partnerships. are likely to remain popular options as e-commerce continues to grow at a rapid pace. Personalization and targeting will also be key to reaching specific demographics and interests.”
However, Shriya Sachdev, Chief Marketing Officer, Puma India, believes that marketers will return to a balance between digital and offline advertising. “After seeing a skewed distribution of ad spend between digital and offline over the past three years, 2023 will see a return to an even distribution between the two channels. The ease of shopping online has transformed retail stores from simple outlets to something more meaningful. engagement with consumers,” says Sachdev.
He added: "This is also the first year we will see sports fans returning to stadiums after a three-year hiatus, breaking new ground in marketing."
Mensa Brands Chief of Staff Manvi Aggarwal talks about increasing spending on content platforms. “With a strong focus on profitability and capital efficiency, Indian brands are looking for higher ROI on their ad spend. The focus on retail media networks, be it e-commerce operators or retail physical retail outlets, will continue to grow to attract more willing. consumers in 2023. We're also seeing increased spending on content platforms and communities (such as MensXP and iDiva) that lend credibility to brands and can serve the dual purpose of brand building and brand execution.
Consumer research is key
Business strategist and angel investor Lloyd Mathias believes that brands will start working to acquire more customers. “In a recessionary world, I think the focus will be on demand-driven marketing, meaning marketing that will drive demand or get consumers to buy products on e-commerce platforms and other retail platforms. So I think a lot of it will focus. , not so much brands, but specific reasons to buy, be it big Diwali sales, festive sales, special events, etc. I think many of these will be a great engine to bring more customers to the platform.
According to Nilesh Gupta, Senior Director of Growth at Meesho, “Advertising will continue to be driven by business goals. As macro challenges continue for at least the first half, I expect brands to continue to highlight core value support for the driving GDP. Back to Maximize rather than overexperiment. Even in our media mixes, we will continue to see a clear ROI target.
Sourav Ray, CSO, Cheil India believes that connecting with consumers will be the right approach to marketing in the type of economy we live in. “Smart retailers will also reinvigorate their loyal base to reduce the cost of buying and selling. Retailers are already using innovative ways to connect directly with their loyal customers. Be it organizing shopping focused on popular tier 2 city categories or sharing personal connections. Consumer retailers can use multiple touches to connect with consumers. The bottom line is that continuous communication with customers is important."
Vinay Chatlani looks at VR and other exciting new ways marketing tech is engaging customers. “To effectively target consumers, retailers must use available consumer data to develop holistic advertising strategies that match products to the right audience. In the post-pandemic period, as more people return to brick-and-mortar stores, in-store advertising and experiences will return as well. Marketing will be big for retailers in India this year. Retailers are likely to focus on creating interactive in-store experiences and using technologies such as augmented reality and virtual reality to create engaging advertising campaigns. will continue to create compelling content through digital catalogs to increase their media presence and reach more consumers every day.” .
Manvi Aggarwal is right. “In a post-pandemic world, more and more consumers are looking for strong brands that are driven by purpose, whether that's a real sustainability effort or a focus on creating jobs for disadvantaged communities. We also see. increased focus on brands developing and manufacturing their own products. Consumers in India are looking for brands they can trust, which is why it's important to invest in content and creators that resonate with TG and create a consistent strategy across all distribution channels. "