MEGA TRENDS IN

INDIAN MARKET &

EMERGING
CHALLENGES
Fear of Missing Out
(FOMO)
 The Fear Of Missing Out (FOMO) and its
exploitation

“Fear of Missing Out” (FoMO) has

captured the attention of millennials
and marketeers alike - it refers to a
person’s apprehension about lacking a
“rewarding” experience that others
appear to be indulging in

Based on the theory of Avoidance

Motivation encompasses the human
nature of avoiding negative stimuli in
the physical, social or psychological
context
 Leveraging FOMO for marketing- Impact on
Products
Flash Sales
• Flash sales create urgency because of limited
stock and/or limited time frame.
• This creates a sense of scarcity of the product
and boosts the conversions.
• Used by retailers both online and offline.
Ex: End of season sales, Black Friday sales,
festival offers, etc.
Strong Social Media
Presence
• Highly engaged audience on any social media
platform influences people from similar interest
groups to start following you
• The people with interests like that of your
audience experience FOMO and resort to this
• A strong social media presence helps you
increase the size of your audience.
User Generated Content
• Content marketing practice - leverage your
users to create content for your brand. In
exchange, of social recognition/ rewards.
• Effective when you have a lot of people
engaging in a campaign
Events
• Limiting the number of seats available,
providing exclusive seats
• The limited time available to buy tickets.
• Events are not only limited to music shows or
conferences. Now businesses are marketing
webinars and podcasts just like an event to gain
an instant audience
Loyalty Rewards
• Loyalty program ensure retention of customers.
• Giving timely rewards to existing customers and occasional surprises, create
a FOMO affect among people who are not customers.
• The FOMO on freebies brings in more and more people under your loyalty
scheme.
1.
Integration &
Convergence
Integration of Products and Services
Portfolio of Products
& Services
The firms are continuously
focusing on providing a
portfolio of products and
services rather than a single
quality product
Retention of
Customers
This strategy is proving to be
extremely beneficial in terms of
retention of customers. e.g.
Netflix
Entering every aspect
of a Customer’s life
With a range of products and
04 01 services, firms have devised a
strategy to enter into all aspects
of a customer’s life e.g.
Amazon
Integration with IoT
Even the non-tech firms like
03 02 Automobile, Safety solutions
etc. have entered into making
smart products through
integration with IoT
A Case on Integration of Products - Apple Inc.

• Integrating iPods and iTunes proved to be revolutionary for the music streaming
industry
iPod + iTunes • Huge profit margin and Apple continued to hold more than 70% of the US MP3
market

“Every once in a while a revolutionary product comes along that changes every thing”

• Three products integrated into one: A widescreen iPod with touch; A revolutionary
mobile phone; Breakthrough internet communication device
iPhone • Time magazine called it the ‘invention of the year’ and described it as a bid to
reinvent the phone

• One key driver behind the iPhone sensation was the launch of the Apple App Store
in 2008
App store • App store was the first outlet that made it easy to distribute, access and download
application directly into the mobile phone
Trends in
Advertising Industry
 Trends in advertising Industry in India

PERSONALIZATION OF ADS EFFECTIVENESS OF VIDEO

ADVERTISING

 Engaging content for customized experience  Promotes brand recall

 Call to action and messaging based on  Seamless function on all devices
environmental triggers  Leverage the Virality factor 9
LOCATION BASED ADVERTISING CAPTURING AND GUIDING MICRO
MOMENTS

I want to know

I want to go

I want to do
 Perfect time for maximum
effectiveness I want to buy
USING
Retaining and engaging REALITY
AUGMENTED customers MAKING ADVERTISING INTERACTIVE

 Emotional connection
 Money saving advertising – right target and customization
 Boosting sales
 Improving hyperlocal advertising 10
De-Globalisation
More countries are selecting inward
looking policies for corporate growth

Pressure from Local players and

consumers

Issues of national security which is

being defined more broadly Ex. China
& Social Media

More and more Right wing nationalistic

parties getting elected in major
economies like US, France, India
 Rise of State Capitalism in Emerging
Markets
More than Half the country’s GDP is contributed by State owned
enterprises. 65 of 73 Fortune 500 Chinese companies are State
owned

Over half of Moscow Exchange’s Value is Govt Enterprises & 50%

rely on them for Jobs

Better situations. Private competition in Utilities and railway

systems

Also engaging in this ? Facebook, Google ? Lack of trust also

pushing local governments to inhibit Globalisation

MNCs will have to constantly compete with local companies with economic and
political backing of the home governments to control the market
 Affects all types of products from Lifestyle
and FMCG to Durables

Patanjali in FMCG Kajaria Tiles Budweiser changing

harping on Indianness focussing on its name “America” to
of the products Nationalism to combat appeal to consumers
MNCs
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Rise of individual
choices and
increase in buyer
side
fragmentation
causing fracturing
of mass markets
 •Marketplaces typically aggregate suppliers at scale to provide competitive
prices and broad selection to buyers. Amazon, Airbnb, and Uber connect
millions of sellers, hosts, and drivers to tens of millions of buyers,
travellers, and riders.

•Conventional wisdom is that marketplaces benefit from high fragmentation

in demand and supply to drive perfect competition in both sides of the
marketplace. Our data indicates that aggregating a large number of buyers
is far more important than a large number of suppliers.

•There weren’t enough buyers online in 1999 to build a large B2B marketplace
business, but this is no longer true in 2018.

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•A large, fragmented market of buyers is required to build a
significant marketplace business

•Each dot on the scatter plot below represents a single

marketplace and shows the relationship between that
marketplace’s revenue and the number of buyers (right chart)
or number of suppliers (left chart). There is a much stronger
relationship between the number of buyers and revenue than
between the number of suppliers and revenue..

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 •Platform shifts have enabled new marketplace opportunities.

•In 1999, these companies may have had large addressable markets, but not enough of the
decision makers at those business were on the internet and ready to make a purchase.
eBay only had 1 million buyers in 1999 and each of these B2B marketplaces would have a
much smaller online addressable market..

•In the last 16 years, this has changed. Since 2002, the number of global internet users has
increased by almost 10 times, from about 400 million to almost 4 billion (half the world’s
population). US internet adoption is 89% and 77% of adults have a smartphone.

•These trends have driven a massive increase in B2B eCommerce spend. In

2018, Forrester predicts almost $1 trillion will be spent by US businesses on supplier
websites (double the size of the consumer eCommerce market).

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 •Much of this spend is by larger companies, but one of the most
interesting opportunities for marketplaces will be in more fragmented
SMB markets. Since 2002 there are 50% more small businesses in the
US and more individuals are now running their own part-time
businesses.

•There are several B2B markets with more than 1 million buyers just in the US. There
are 2 million farms, 2 million active real estate licensees, 1 million restaurants, 1 million
doctors, 650,000 construction companies, and 3 million Uber drivers.

•Despite these developments, less than 3% of marketplaces founded from 2013-2017

were connecting businesses with other businesses.

•The demand from businesses is clearly there: Amazon launched it’s B2B-
focused marketplace in 2015 to tackle this market and by January 2018 had
already passed $1 billion in revenue with 400,000 business buyers and 45,000
sellers. Auto1Group connects the 1.5m car dealers worldwide and generated
over $1.5 billion in GMV in 2016. Witmart and Upwork connect hundreds of
thousands of contractors to hundreds of thousands of businesses that need
contract, trademark, design, development, or hundreds of other tasks.

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Shared Economy
Definition and its criticism
The sharing economy is an economic model often defined as a peer-
to-peer (P2P) based activity of acquiring, providing or sharing
access to goods and services that are facilitated by a community
based on-line platform.
◂ Criticism of the sharing economy often involves regulatory uncertainty. Businesses
offering rental services are often regulated by federal, state or local authorities;
unlicensed individuals offering rental services may not be following these regulations
or paying the associated costs, giving them an "unfair" advantage that enables them
to charge lower prices.
◂ There is also a fear that the greater amount of information shared on an online
platform can create racial and/or gender bias among users. Airbnb had to face racial
discrimination complaints from African-American and Latino would-be renters. As
more data is presented and the sharing economy evolves, companies within this
economy will need to combat bias in both their users and algorithms.
 Shared Economy

Hospitality Transport Entertainment

Renting rooms over Renting cabs/cars Subscription based
booking hotels over buying availability of multiple
vehicles options over buying
movie/music CDs

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 Shared Economy

Hospitality

Transport Entertainment 23
Shared Economy
Geo Socialization

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Year: 2020.
Location: The busiest street in town.

Imagine yourself walking down the street one

afternoon and your mobile phone gives you
the following alerts:

 Your buddy is at a bar nearby

 Your favorite restaurant down the street is
offering a special on your favorite food
 A shop around the corner is offering a
discount sale on your preferred clothing
line
In simple terms, your profile and interests and other user-submitted
data will be matched with location-based services to connect and
coordinate with surrounding people or events (such as meet-ups,
concerts, or nightclub and restaurant reviews).

This will result in new trends of digital marketing, socializing and

networking, furthering the evolution of interaction between
individuals and organizations. Business will now thrive on new digital
marketing tools, promotions, and offers.

An information bar with contact numbers will enable such businesses

to capitalize on opportunities and potential contacts on a real-time
basis. This would imply that businesses will soon need to be
equipped with the infrastructure and resources to respond to real-
time demand to cater to a whole new spectrum of customers who
react to geographically tagged services.

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Meeting potential customers can be extended to various scenarios. A
series of alerts about different users in a business conference would
help a user network with potential clients and probably on a job
prospect as well!

Layar, the world’s first mobile augmented reality browser now

available in the market, is a step toward this vision. Layar operates
using a combination of GPS, mobile phone camera and compass to
identify a user’s location and retrieve information on geographical
coordinates that can be seen through the camera view. By simply
pointing the visual search engine in any direction, Layar gives
information on exciting places, clubs, bars, cash machines,
restaurants, shops and theaters.

Geo socialization will change the way we think, move, interact,

communicate, do business, and capitalize on opportunities in the
future.

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