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May 19, 2025
Aakriti Bansal, Medianama
May 19, 2025
Zepto has launched Zepto Atom, a paid analytics product for consumer brands. The tool offers live dashboards with minute-level updates, PIN-code level performance maps, and Zepto GPT, an in-house Natural Language Processing (NLP) assistant trained on internal data.
While Blinkit and Swiggy Instamart have not announced comparable offerings, Zepto is pitching Atom as a first-of-its-kind play in quick commerce data access.
The launch comes as Zepto gears up for a public offering. The company is in talks to sell $250 million in secondary shares to Indian investors to boost local ownership ahead of its IPO. With a $5 billion valuation and a presence in just 15 cities, Zepto is seeking new ways to expand both revenue and market influence.
A strategic product in the lead-up to IPO
Zepto’s push to monetise platform tools comes at a time when it is attempting to raise its domestic shareholder base to 50%, reportedly as part of regulatory preparation for a future IPO. CLSA, in its 2024 App-racadabra report, estimates Zepto holds 28% of India’s quick commerce market despite a limited presence, trailing Blinkit at 39%.
With Zepto Atom, the company appears to turn its data infrastructure into a service layer for brands. This raises questions about how user behaviour transforms into brand-facing insight.
Zepto’s Multi-Lever Margin Play
Zepto’s cost structure is divided into warehouse transport, dark store operations, last-mile delivery, and corporate overheads. According to CLSA’s App-racadabra report, the company has achieved measurable efficiency gains across each of these categories. For instance, long-haul warehouse transport costs fell from Rs 1.7 per order in March 2022 to Rs 0.8 in February 2024. Handling costs inside dark stores declined from Rs 11 per order in June 2023 to under Rs 10 by January 2024. Last-mile delivery expenses dropped 20% between December 2023 and February 2024, from Rs 50 to Rs 40 per order.
HDFC Securities highlights three key levers for e-commerce profitability: raising average order values via premium or bundled products, improving take rates through ads and private labels, and reducing last-mile costs through better routing. Zepto has pursued these through initiatives like Zepto Café, Relish (in-house food and meat brands), the Zepto Pass loyalty program, and now Zepto Atom—signaling a multi-pronged approach to expand margins beyond logistics.
Whether brands will act on the data that Atom delivers, remains an open question.
Granular offtake data is rarely made available to brands, whether it is by offline retailers or by online platforms; so far brands have been largely flying blind, especially when it comes to marketplaces. In that sense, Zepto’s Atom can be a huge enabler and gamechanger,” Devangshu Dutta, Founder, Third Eyesight, told MediaNama.
Not All Brands May Be Ready
Zepto Atom lets brands monitor impressions, conversions, share of voice, and customer retention in near real-time.
“While having access to real-time geographical and time-stamped sales data is potentially an absolute goldmine for any brand, how useful it is will depend much more on how ready or capable the brand is to use the analysis and make adjustments to its strategy,” said Dutta.
Brands can use Zepto GPT, the NLP assistant embedded in Atom, to query platform data conversationally—for instance, to identify under-indexed Stock Keeping Units (SKUs) in a specific PIN code or analyse what’s driving category sales. However, it remains unclear how brands interpret or act on these insights in practice.
The company has not disclosed Atom’s pricing model. It also hasn’t confirmed whether access will be open to all brands or restricted to high-volume partners. These details will likely determine adoption.
How Atom Fits into the Margin Strategy
Zepto Atom’s real-time sales metrics, SKU-level performance data, and customer retention patterns align closely with the margin levers identified by HDFC Securities. By providing granular insights, Atom enables brands to fine-tune pricing, reposition products, and run targeted campaigns, potentially increasing order values, improving take rates, and optimizing delivery routes. Such adjustments could boost volumes and conversions, benefiting Zepto through higher commissions and ad revenues.
“For Zepto it is certainly a differentiator and could be a driver for additional revenue not just in terms of the subscription fees that they would charge but the incremental impact it could make on the brand partners’ sales and, by extension, on Zepto’s own overall fees/revenues,” said Dutta.
Still, widespread adoption may depend on how well Zepto supports brand onboarding and data literacy. “It may make sense for Zepto to even assist brand-side personnel in understanding how best to use the new tools and also help them create tangible operational changes on their side using the insights.”
Search behaviour and profiling concerns remain unresolved
Earlier this month, Zepto used search behaviour to curate mood-specific product categories such as “Crampy” and “Hangry,” in response to searches related to premenstrual syndrome (PMS)—a recurring condition affecting many women before menstruation. Critics told MediaNama that this kind of emotional profiling could occur without user awareness or consent.
Zepto’s privacy policy states that it collects lifestyle, health, and behavioural data for personalisation and internal analysis. However, the company does not explain whether it stores inferred data, shares it with brands, or applies it to pricing and promotions.
Whether Atom makes any of this data visible to brands remains unclear.
Why This Matters
Zepto Atom signals a shift in how quick commerce platforms are looking to generate value—not just from delivery, but from the data their ecosystems produce. With tools like real-time dashboards and search-linked behavioural insights, Zepto is turning user interactions into assets for brand partnerships.
The move raises larger questions about where platform growth is coming from. Is the business of quick commerce becoming the business of behavioural data? As brands gain new visibility through Atom, the balance between consumer experience and commercial analytics becomes harder to separate.
MediaNama has reached out to Zepto with these questions:
What specific types of consumer behaviour and purchase data are made available to brands through Atom?
Does Zepto Atom include inferred metrics such as user intent, repeat behaviour, or emotional tagging in its brand-facing dashboard?
Are brands shown real-time access to individual-level trends, or only aggregated cohort-level insights?
Are users informed that their platform activity may be used to generate commercial insights for brands?
Can users opt out of this data being shared with third parties via Atom?As of publication, Zepto has not responded. We will update the story when we receive a response.
(Published in Medianama)
admin
May 7, 2025
Shalinee Mishra, Exchange4Media
May 7, 2025
Bollywood’s biggest stars, Katrina Kaif and Deepika Padukone, have reputed beauty businesses to their names — Kay Beauty and 82°East, respectively.
Kay Beauty, launched in late 2019 in partnership with Nykaa, has crossed the ₹200 crore revenue mark in 2024. In contrast, 82°E, launched by Deepika in November 2022, has managed around ₹25 crore, according to industry estimates.
Both actors have massive social media pull, strong brand equity, and sizable fan followings. They are matched in popularity, but the same cannot be said about their respective brands. One clearly has an edge over the other. In this case, it is Kay Beauty.
What went wrong with 82°E?
A core difference between the two brands is pricing.
Kay Beauty’s average product is priced affordably at around ₹299, making it accessible to a large portion of Indian beauty consumers. It hits the sweet spot of mass affordability and aspirational branding.
Katrina seems to have built the line keeping in mind India’s price-sensitive but beauty-conscious audience, especially women who look for functional, everyday products without shelling out a fortune.
On the other hand, 82°E positions itself as a luxury skincare brand, with products starting at ₹2,500 and going up to nearly ₹4,000. While targeting the premium market is a valid strategy, it demands either a very clear value proposition or a unique, standout offering that sets it apart from both domestic and global competitors.
According to multiple marketing and retail experts, 82°E currently lacks such a defining “hero” product. In contrast, top-tier global brands like Estée Lauder (Advanced Night Repair) and L’Occitane (Immortelle Divine Cream) have built their entire portfolio identity around one or two iconic products.
Devangshu Dutta, CEO of retail consultancy Third Eyesight, cautions against overestimating the power of celebrity equity alone. “Celebrity involvement, even with an equity stake, doesn’t automatically ensure brand success,” he says. “What matters is how well the product and brand resonate with the end consumer. Many factors—category selection, pricing, accessibility, and retail strategy—determine scalability.”
He adds, “A high-priced D2C brand with limited-use products will always scale slower than a more affordably priced, high-rotation brand with widespread retail availability.”
Missing the emotional connect
Another crucial area where 82°E falters is brand recall without Deepika. Experts argue that if Deepika’s face were to be removed from the branding, very little would remain to emotionally anchor consumers.
While celebrity-founded brands enjoy the initial boost of recognition, long-term consumer connection demands storytelling, product efficacy, and relevance.
For a product priced between ₹2700–₹3900, the experience and results need to justify the cost. But user feedback suggests the perceived benefits don’t dramatically exceed what one might get from a ₹999 serum in the market.
Katrina’s Kay Beauty, in contrast, positioned itself as a homegrown solution for Indian skin types, with products that worked well for deeper skin tones and humidity-prone weather.
The brand tapped into inclusivity and practicality—two emotional hooks that resonate deeply with Indian consumers. Additionally, it responded to functional needs by launching waterproof and sweat-resistant products, which especially make sense during monsoons.
On Instagram, Katrina actively promotes her products, collaborates with influencers, and shares content that resonates with her target audience. In contrast, Deepika’s brand presence on social media lacks the same level of relatability and consistent engagement, suggesting a need for a more tailored and active digital strategy.
Link: https://www.instagram.com/reel/DI_wjSRoZTM/? utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==
https://www.instagram.com/reel/DIWHG1DSR5f/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==
Retail footprint and distribution strategy
Skincare, particularly in the premium category, remains an experiential purchase. Consumers often want to try and test products before committing, especially at a higher price point. 82°E launched as a D2C-only brand, relying heavily on its website and social media advertising for discovery and sales with no store opening.
The strategy meant substantial upfront investment in paid media and influencer partnerships to generate traction, but lacked the physical visibility or tactile experience needed to convert high-end skincare buyers.
In contrast, Kay Beauty quickly became visible across Nykaa’s extensive online and offline retail network, giving shoppers a chance to explore products across price tiers in-store and online. The Nykaa tie-up served not only as a strong distribution engine but also as a brand endorsement in itself, given the platform’s dominant position in Indian beauty retail.
As Kushal Sanghvi, a media and marketing strategist, puts it, “Kay Beauty got its pricing, packaging, promotion, and place—basically the key P’s of marketing—spot on. Deepika’s brand, though elegant, is caught in a niche premium wellness space with limited scale.”
Kay Beauty was developed with a clear understanding of what works in India: colour cosmetics tailored for Indian skin tones and seasonal weather. The brand focused on frequently-used products like lipsticks, kajal, and foundation sticks that had both a functional and emotional appeal, allowing it to drive repeat purchases.
In contrast, 82°E focused on skincare rooted in self-care and holistic wellness, a space that is already crowded with local and international competitors, and where product effectiveness needs to be proven over time. Moreover, Indian consumers still tend to see skincare as utilitarian, rather than indulgent, which makes higher pricing even more of a challenge.
Short-Term Results vs. Long-Term Vision
It’s important to contextualise these figures within brand age. Luxury brands, globally, have often taken decades to establish loyalty. From Estée Lauder to Chanel, brand equity is built slowly through repeated use, reliable results, and consistent positioning.
But time alone won’t change the equation unless the core approach is recalibrated. If Deepika’s brand intends to build a long-lasting business, it will need to think beyond elite appeal and D2C strategy. Offline presence, a wider retail network, and possibly a reimagining of its product portfolio to include lower price points or trial-sized options could open the door to a broader consumer base.
India’s beauty and wellness market is growing at over 15% year-on-year, and opportunities abound at both the premium and affordable ends of the spectrum. But clarity of positioning and accessibility remain critical to long-term success.
(Published in Exchange4Media)
admin
March 7, 2025
Shailja Tiwari, Financial Express
March 7, 2025
This is what happens when you hit the gym after a long pause. On your first rebound day, the same weights seem heavier, the same set of squats tires you quicker. You might feel frustrated – nothing seems the way you left it.
The same scenario faces brands looking to make a comeback. Those “muscles” – read brand loyalty -have lost strength due to long absence. The brand’s “stamina”- customer loyalty – have declined with neglect. All of which essentially means you need a relook at the entire “regimen” – the product, price, place and promotion – that seemed to work the last time around.
Men’s fashion brand Reid & Taylor is facing the same dilemma.
Launched in India in 1998, the brand vanished from the market in 2018 after S Kumars – which held the rights to manufacture and market the Scottish brand in India went bankrupt. Reid & Taylor is making a gradual comeback now, under the aegis of its new owner Finquest Group, complete with a campaign featuring new brand ambassador Vicky Kaushal and tagline, “Man on a Mission”.
Finquest Group has invested over ₹750 crore in revitalising the brand. Reid & Taylor is available in more than 1,200 multi-brand and exclusive brand outlets across the country, as per a company announcement.
In January, Reid & Taylor also announced its partnership with the Unicommerce to knit together the brand’s website, warehouses, physical stores, and other online platforms in one integrated network. The tech integration followed the launch of Reid & Taylor’s brand website and its growing presence across various online marketplaces, a clear signal the company is gearing up to address the needs of today’s customer and give its competitors a run for their money.
Kapil Makhija, CEO and MD, Unicommerce, explains how this will enable Reid & Taylor to modernise its operations: “In addition to a consistent customer experience, this integration enables efficient inventory management through a centralised platform that allows ship-from-store service, where the brand can switch orders between warehouses and stores, offering a broader assortment for sale and faster order fulfilment. It also helps Reid and Taylor connect with the more online savvy audience.”
The Indian menswear market, encompassing formal, casual and traditional apparel, had crossed ₹2 trillion in 2023 and is expected to reach ₹4.3 trillion by 2027, as per a Statista report. Experts say that the menswear category has grown exponentially since Reid & Taylor’s first outing. It has a host of local and international brands such as Raymond, Mufti, Allen Solly, Louis Phillipe and Manyavar offering stiff competition.
In other words, Reid & Taylor has its task cut out.
Makeover strategy
The greatest challenge for the relaunched brand is to establish relevance and share-of-mind with a new set of consumers, observes Devangshu Dutta, CEO of Third Eyesight. “In its initial avatar in India, it rode on the brand’s past goodwill, but since its fall a few years ago, the market has changed significantly. Ready-to-wear apparel, growth of modern retail, online commerce and a set of consumers who have no past history or association with the brand are all significant factors at play, remarks Dutta.
At its best in the early-2000s, the brand was positioned mostly within the wedding segment, a category that is also rapidly changing. The styles that dominate wedding apparel are changing among younger cohorts, points out Ajimon Francis, MD India for Brand Finance. Formal three-piece suits and safari suits are no longer style statements.
Consumers are opting either for designer wear like a Tarun Tahiliani or for mid-segment offerings where brands like Raymond operate. “Formal suits are becoming an ‘uncle’ or ‘dadaji’ segment, and the wedding lines showcased by most brands are geared towards traditional wear. Formalwear for weddings now includes sherwanis and kurtas, where brands like Manyavar and FabIndia rule,” he points out.
Reflecting on the brand’s exit earlier from the Indian market, Francis says that its owners’ (S Kumars) inability to adapt the brand to changing consumer behaviour led to its downfall. The Finquest Group will need to clearly redefine its new positioning since Reid & Taylor now offers a mix of styles across casual and formal menswear.
Legacy brings credibility but it can also be baggage, remarks Rutu Mody Kamdar, founder of Jigsaw Brand Consultants. The challenge for Reid & Taylor lies in shaking off the heritage brand’ tag and making itself relevant to younger buyers who value modern style over nostalgia. “It needs to own the ‘quiet luxury’ space, timeless tailoring with a contemporary edge. That includes modern cuts, cultural collaborations, omnichannel presence, and aspirational storytelling,” suggests Kamdar.
E-commerce strategy will be key too. The brand will need to blend strong visuals with smart pricing and seamless strategy. Kamdar adds that Reid & Taylor needs to look at e-commerce as not just a sales channel but also a brand building platform.
(Published in Financial Express – Brandwagon)
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March 5, 2025
Nisha Qureshi, Afaqs
5 March 2025
Bournvita, a chocolate-flavoured malt drink produced by Cadbury under Mondelez, is a household name in India. Marketed as a health drink that supports children’s growth and development, it holds a 15-16% share in the Indian health food drink sector, second only to Horlicks, which dominates with nearly 50%.
Its advertising has traditionally centred on themes of health, confidence, and mental strength, with campaigns such as Tayyari Jeet Ki resonating strongly with consumers.
The Food Pharmer controversy
Despite its strong market presence, Bournvita has faced criticism over its high sugar content and other ingredients, sparking public debate and legal scrutiny. The controversy escalated last year when health influencer Revant Himatsingka, known as Food Pharmer, called out Bournvita for its excessive sugar levels.
Himatsingka’s video criticised Bournvita for its high sugar content and potentially harmful additives, such as caramel colouring agents. His claims triggered widespread consumer backlash and prompted Mondelez India to issue a legal notice, dismissing his allegations as “unscientific” and “distorted”.
However, the legal action only intensified public scrutiny. In response to mounting pressure, Bournvita reduced its added sugar content by 14.4%, from 37.4 grams to 32.2 grams per 100 grams of powder.
Can influencers salvage Bournvita’s reputation?
More than a year after the controversy, Bournvita has launched a large-scale influencer campaign to highlight its lower sugar content and nutritional benefits. The campaign features influencers visiting Bournvita factories to vouch for its authenticity and health benefits.
While the concept of factory tours is not new—brands such as Parle and Havmor use it as an extensive strategy to build consumer trust even in the absence of any controversy.
The concept has since been adapted by several brands. ID Fresh, known for its packaged idli and dosa batter, faced allegations of contamination with animal bones.
In response, it launched TransparenSee, a trust-building initiative that allowed consumers to take virtual tours of its production facility via live streaming, offering an unfiltered view of its operations.
However, marketing experts argue that Bournvita’s approach may not be enough to restore its credibility, as it relies heavily on influencer testimonials rather than direct consumer engagement. Crisis communication, they caution, must be handled with transparency and genuine action.
Bournvita’s strategy bears similarities to Shein’s controversial influencer-led factory tour campaign, which backfired. In June 2023, the fast-fashion retailer invited US influencers on a paid trip to its ‘Innovation Factory’ in Guangzhou, China, to counter allegations of labour exploitation.
Instead of improving Shein’s reputation, the trip sparked further backlash, with critics dismissing it as a PR stunt designed to manipulate public perception.
Mondelez defends the campaign
Speaking about the campaign, a Bournvita spokesperson says, “At Mondelez, our unwavering commitment to quality, transparency, and consumer trust defines everything we do. This campaign is a testament to our ongoing efforts to engage meaningfully with consumers.”
He further emphasises that Mondelez aims to go beyond influencer marketing by engaging directly with key stakeholders such as mothers and nutritionists, offering deeper insights into the product’s quality and nutritional benefits.
The need for authenticity over promotion
Krishnarao Buddha, a former senior category head of marketing at Parle Products, remains sceptical of Bournvita’s approach, arguing that credibility issues cannot be resolved through influencer endorsements alone.
“Instead of relying on paid influencers, brands should adopt a transparent and action-driven approach. In today’s digital age, where public scrutiny is at an all-time high, authenticity is the key to earning and retaining consumer trust,” he explains.
Devangshu Dutta, CEO, Third Eyesight, echoes similar concerns, stressing that once trust is broken, it takes time to rebuild.
“A single influencer campaign cannot erase past controversies. Brands need to engage in consistent and transparent communication about real improvements. Bournvita highlights its nutritional benefits, but consumers need more than promotional content—they need tangible proof of change, such as independent testing and direct consumer engagement,” he asserts.
Sandeep Goyal, chairperson and MD of Rediffusion, critiques Bournvita’s approach as an “MBA (Marketer’s Belly Ache) strategy” that prioritises corporate messaging over authenticity. “In today’s digital landscape, consumers are highly aware of paid promotions, making traditional marketing tactics less effective. Instead of attempting to control the narrative through influencers, brands should focus on rebuilding credibility through transparency and honest communication,” he advises.
Lessons from Cadbury’s past crisis management
This is not the first time Mondelez has had to navigate a brand crisis. In October 2003, just before Diwali, Cadbury Dairy Milk faced a major scandal when customers in Mumbai discovered worms in chocolates. The Maharashtra FDA seized stocks from its Pune plant, leading to widespread concern and a 30% drop in sales.
To regain trust, Cadbury launched Project Vishwas, an initiative to educate 190,000 retailers and reassure consumers. It invested Rs 15 crore in improved packaging without raising prices and enlisted Amitabh Bachchan as a brand ambassador. The campaign successfully restored consumer confidence.
Will Bournvita’s efforts be enough?
While Bournvita has taken steps to address consumer concerns, relying on influencer marketing alone may not be sufficient to rebuild its credibility. As past examples show, true reputation recovery requires more than just strategic campaigns—it demands tangible action, consistent transparency, and genuine consumer engagement.
(Published on Afaqs)
admin
October 28, 2024
Nisha Qureshi, Afaqs
28 Oct 2024
Reliance Industries last year made a strategic move into the soft drink sector by acquiring the iconic carbonated beverage brand ‘Campa Cola,’ which gained prominence in the 80s and 90s.
The conglomerate intends to strengthen its brand by employing its classic pricing disruption strategy. Reliance is expanding its presence nationwide by focussing on affluent regions and utilising e-commerce and quick commerce platforms.
Recent reports suggest that Campa Cola is providing retailers with more favourable trade margins than its rivals Coca Cola and Pepsi, aiming to challenge the existing duopoly in India’s soft drink market.
In the Q2FY25 earnings call, Reliance Industries reported that its consumer brands, particularly Campa Cola and Independence, are experiencing robust growth, with general trade increasing by 250% year-on-year.
“We are taking several marketing initiatives to grow consumer brands and will leverage the festive period to drive demand,” the company’s representative said during the call, adding that the company was “very optimistic about the next few quarters”.
Experts now believe that the soft-drink beverage market will witness an increase in advertising initiatives by the competitors to mitigate the disruption.
Saurabh Munjal, co-founder and CEO of Archian Foods, the makers of Lahori Zeera, asserts that Reliance’s entry into this sector will only expand the market for soft-drink beverages.
“The consumption will increase, accompanied by a corresponding rise in marketing efforts,” he adds.
Devangshu Dutta, the founder of Third Eyesight, a management consulting firm engaged with the retail and consumer products ecosystem, asserts that both Coca-Cola and Pepsi will undoubtedly endeavour to safeguard their market share.
He says the emphasis will particularly be on domestic consumption, and we can anticipate an increased investment in share-of-mind campaigns to proactively counter Campa’s expansion.
Business strategist and independent director Lloyd Mathias believes that the current circumstances are conducive to market expansion and disruption. “Other players will likewise increase their visibility through marketing strategies and retail initiatives to counter this. So what we will see in the next year is that the categories of soft drinks will grow quite dramatically,” he adds.
The classic Reliance move
Experts suggest that Reliance’s approach to Campa Cola involves competitive pricing, reflecting a strategy akin to its disruptive tactics in the telecom sector with Jio and JioCinema. For instance, a two-litre bottle of Campa Cola’s lemon flavour is priced at Rs 53 on a quick commerce platform, whereas a leading competitor offers it for Rs 74.
Besides competitive pricing, Reliance also has the significant advantage of owning a large retail and media network to scale Campa Cola.
“Reliance has earlier disrupted markets with the aggressive pricing strategy and it has the resources to follow-through on its pricing strategy for Campa as well. It can build significant volumes across its own stores prior to having to compete for shelf space in the broader distribution channels,” says Dutta.
As per Mathias, in addition to possessing deep pockets, Reliance benefits from its extensive media and entertainment wing that will be leveraged for the promotion of Campa Cola.
“I think the combined strength of Reliance in terms of distribution, media, and retail, alongside its capacity to maintain pricing integrity, are quite formidable. I think they are going to make a significant impact in the market,” says Mathias.
Impact on smaller players
Experts also suggest that the introduction of Campa Cola at its current price point will primarily affect smaller local competitors who function within the same pricing bracket, particularly in tier-2 and tier-3 markets.
Mathias asserts that Campa Cola will initially expand the soft-drink beverage market, while also emphasising that given the price point of the soft drink, the immediate impact will be felt by smaller local players who operate at similar price points. Introduction of numerous Indian innovations within the soft-drink category could significantly impact relatively smaller competitors.
Similarly, Dutta observes that the market for carbonated beverages largely hinges on the intangible qualities associated with the brands. In India, however, brand preferences are not as hard coded as they are in the United States.
“Consumers do switch between brands, and price-sensitive customers can be swayed by visible pricing differences. This gives deep-pocketed Reliance an opportunity to carve out a significant market share.”
However, according to Munjial of Lahori Zeera, there appears to be no direct impact on his brand, given that Campa Cola has thus far only introduced the well-known flavours of carbonated beverages. “As far as Lahori Zeera is concerned, there is no impact because the target consumer, the flavours are all very different.”
“This development will merely add to the market and increase the number of people consuming carbonated beverages,” he says.
(Published in Afaqs)