boAt to leverage e-commerce partnerships, digital marketing to boost sales
According to the DRHP, boAt spent Rs 46 crore on ad and promotions in the six-month period ended on 30 September 2021
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Imagine Marketing India, the parent company of hearable and wearables brand boAt, will continue to capitalize on India's e-commerce industry to accelerate sales and revenue. The company has intended to invest in existing strategic relationships with online marketplaces, such as Amazon and Flipkart, that sell boAt products.
"For our online sales channel, we intend to invest in our existing strong strategic relationships with online marketplaces that retail our products, such as Amazon and Flipkart, and continue to jointly promote our brands and products on their platforms, while introducing more SKUs that we retail on these online marketplaces through exclusive product launches," the IPO-bound company said.
According to the Sebi registered document, boAt has consistently increased its advertising and promotional expenses year-on-year. The company's Draft Red Herring Prospectus (DRHP) revealed that boAt spent Rs 46 crore on ad and promotions in the six-month period ended on 30 September 2021. However, this data is according to the previous DRHP. The company has filed another IPO this year through pre-filing route that allows company to withhold public disclosure of details until later stages.
The company increased its advertisement and promotional expenses to Rs 47.8 crore in fiscal year 2021 from Rs 20.2 crore in 2020, driven by an increase in new consumer acquisition and advertisement initiatives during the year.
The consumer electronic brand has aggressively splurged on digital marketing to target users since its inception.
"Over the years, we have developed initiatives that target a consumer’s retention life cycle. We believe our marketing initiatives have been consistent across several forms of media, aided by organized and rigorous calendar planning across various channels and content formats, with the brand identity at its core and this has allowed us to build an engagement driven marketing approach that is efficient and productive," the company mentioned in the DRHP.
The company said that its marketing strategies will continue engaging with prominent personalities, including cricketers, musicians, social media influencers, television personalities, and celebrities.
Mumbai-based boAt has floated a Rs 2000 crore IPO, comprising a fresh issue of equity shares worth Rs 900 crore and an offer for sale (OFS) of up to Rs 1,100 crore. Of the total net proceeds, Rs 700 crore will be allocated for repayment/prepayment and general corporate purposes.
