Benetton's come a long way from being a pioneer and provocative brand. After 30 years in India, the iconic global fashion brand is on a mission to bring back its cool quotient and chart a new growth trajectory. During a visit to India, <strong>Massimo Renon</strong>, chief executive officer of Benetton Group, got into an exclusive conversation with Storyboard18's editor <strong>Delshad Irani</strong> to explain the new vision and creative direction for Benetton and the transformation of the legendary brand. Watch to find out how Benetton is planning to become bold and cool again. 

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<strong><em>The interview first aired on CNBC-TV18.</em></strong>

Benetton CEO Massimo Renon: Indian consumers will be profiled as future consumers for Benetton

Addressing Benetton's second-largest global market, CEO Massimo Renon tells Delshad Irani about the company's plans to make brand Benetton cool again.

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Gen Z consumers are 50 percent more likely to take their friends' recommendation over an influencer or a celebrity when making a purchase decision, revealed a study from Yuvaa – the Indian Gen Z-driven youth media, impact, and research organization.

An Economic Times report states that the findings are based on a report titled 'Not All Gen Z'. The findings are based on responses from over 900 Gen Z participants, spanning over 20 cities across tier I, II, and III cities and towns of the country. Gen Z represents people born between 1997 and 2012 who show distinctive behavior in their lifestyle and shopping habits. At over two billion, Gen Z forms roughly 25 percent of the global population. It makes up for over 35 percent of India's population, according to Yuvaa.

Their estimated spending power is in excess of €235 billion, according to BCG. 

<strong>Influencers provide brand visibility</strong>

Karthik Srinivasan, a communications strategy consultant, believes that we trust the references and recommendations of the people we trust the most within our family or friends circle. However, influencers have a different role to play.

"They have come to usurp the role of mainstream media and advertising to a large extent and have become predictable sources of visibility more than influence. In other words, influencers (along with mainstream media and advertising) are sources of introducing products or services, use-cases, and giving them visibility, but they may not necessarily persuade people to make the purchase. That's where friends and family (known peers, colleagues too) would come into play," he explains.

Srinivasan tells Storyboard18 that influencers are merely shilling a product for a fee and have long stopped pretending to be actual users of a product to offer use-based/experience-based content/information.

"Even if they claim to offer personal experience-based recommendations, if viewers/followers see the disclaimer about paid content, they'd automatically discount that factor and take that recommendation with a pinch of salt," he adds.

Yuvaa's report findings also highlight a few key aspects of a Gen Z consumer who is not only willing to support brands that support social causes but also cares about sustainability. Around 63 percent of Gen Z shoppers surveyed said they prefer brands that support social causes. 

71 percent of Gen Z prioritize brands that are environment-friendly, and 77 percent consider price when buying something, even if it's not sustainable. Gen Zs are split equally between feminist and non-feminist brands, but 60 percent of women prefer them.

<a href="https://www.storyboard18.com/quantum-brief/amazon-vs-myntra-who-will-win-over-more-gen-z-shoppers-in-india-8247.htm">Read more: Amazon vs Myntra: Who will win over more Gen Z shoppers in India?</a>

<strong>E-com platforms chasing Gen Z</strong>

These trends are being closely followed and implemented in product and marketing strategies by e-commerce platforms in India. Storyboard18 reported that there has been intense competition between online retailers to woo the next generation of shoppers, with e-commerce platforms Amazon and Myntra actively investing in the Gen Z cohort.

Flipkart-backed fashion portal Myntra, for instance, announced the launch of FWD, an in-platform experience offering additional brands and styles curated for Gen-Z shoppers.

The move comes days after rival Amazon Fashion introduced the ‘Next Gen Store,’ catering to the unique needs of Gen Z shoppers, who seek to experiment with fashion and have varying preferences in terms of styles, sizes, brands, and fitting.

While Nykaa Fashion has not yet launched a dedicated platform for Gen Z shoppers, it has been onboarding brands that target this cohort. Recently, it added MIXT, which offers streetwear-inspired modern apparel options such as bodysuits, corsets, jumpsuits, jackets, cardigans, and footwear. It brought in Cider, a US-based label, expanding its global offerings to Indian consumers.

Gen Z segment has a distinct aesthetic that impacts their brand choices, which have been driving fashion trends – crop tops, ribbed dresses, chunky sneakers, and baggy jeans.

Unlike previous generations, which were heavily influenced by Bollywood and sports celebrities, Gen Z shoppers are more picky about who they follow. Social media influencers have emerged as a significant force in shaping their purchase decisions.

However, there is a catch. This group only follows influencers or celebrities who ‘walk the talk’ and are more trustworthy.

<strong>Value for sustainability, inclusivity</strong>

Bindiya Bhatt, senior director of category management at Myntra told Storyboard18 that for Gen Z, inclusivity, authenticity, and unconventionalism take centre stage as well.

"By embracing these values and catering to their specific needs, businesses can create more meaningful and impactful experiences that resonate with this important and influential demographic," she said.

Technopak Advisors' Ankur Bisen had a deeper insight, saying Gen Z shoppers are community-driven and seek better products rather than stay loyal to brands.

"...they are definitely seeking better products than brands and they are also looking at the consumption of fashion through communities. For example, there are communities towards gaming, nature, and even limited edition products. The spin-off from this trend could be the 'sneaker culture' in India and the craze to buy limited edition sneakers that are being sold online. These are some micro trends that one needs to notice," he said.

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<iframe title="Coca Cola's Arnab Roy On Thums Up New Campaign 'Har Haath Toofan' | Storyboard 18 | CNBC-TV18" src="https://www.youtube.com/embed/fXe4to9HL4Q" width="853" height="480" frameborder="0" allowfullscreen="allowfullscreen"></iframe>

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Over the past few months, Metaverse has received a lot of attention. Some brands are viewing marketing in the metaverse as an opportunity to reach a larger audience in an engaging manner. Increasingly, automakers are getting onto the metaverse bandwagon to enhance their customer experience.

Mindshare India recently conceptualised and enabled the first ever electric vehicle (EV) launch in the metaverse for Volvo Cars in a space called Volvoverse. This is a first-of-its-kind collaboration across WPP agencies.

Watch to find out how and why they did it. 

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<span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start">﻿</span>Sudhir Sitapati joined the homegrown FMCG giant Godrej Consumer Products as MD and CEO last year when the world was beginning to open up in a post-pandemic era. 

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<iframe width="885" height="498" src="https://www.youtube.com/embed/-_5ThtcH_6w" title="In Conversation With Sudhir Sitapati On Godrej Consumer Products' Biz Outlook | Storyboard 18" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

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Parikshit Sharma, 19, is an avid Spotify user whose day starts and ends with listening to music, podcast and audio streams on the platform. Sharma is not a premium user and doesn’t mind consuming ads.

“I don’t mind the ads as long as I’m getting my daily dose of music and podcasts,” claims Sharma.

Sharma is a classic consumer case for a wide variety of brands, including categories such as smartphones, confectionery, dating apps to video streaming platforms that are tapping the Gen Z and millennial consumer base (18-35 years) on audio streaming platforms serving smart customised programmatic ads. To be sure, there’s enough data on how well programmatic advertising works on videos and display though audio is slowly yet steadily pacing up as well.

A joint report by EY FICCI on India’s M&amp;E sector published in March states that the share of programmatic advertising increased from 10 percent of total digital spends in 2017 to 42 percent in 2021.The increased prevalence of programmatic guaranteed amongst publishers, as they can guarantee both price and impressions to advertisers. The digital media segment grew 29 percent to reach Rs 303 billion in 2021 and it is expected to grow further at a CAGR of 20 percent over the next three years to touch Rs 537 billion.

“Programmatic advertising is now extending its remit to sectors like audio OTT, DOOH, etc., and we can expect to see several platforms come into being to serve even traditional platforms like radio and regional television in future,” the report notes.

<strong>Headroom for growth</strong>

The usage stats clearly indicate key trends as well. The EY FICCI report states that Indians spent 4.7 hours a day on their phones in 2021, aggregating 700 billion hours of consumption (second highest in the world). Around 197 million people streamed music online in 2021 on a monthly basis. However, India was ranked 20th in terms of consumer spend which in turn means enough headroom for advertisers and agencies to convince consumers for making purchase decisions.

Lalatendu Das, CEO, Performics India, Publicis India-owned performance marketing agency, highlights that while reach of audio advertising has grown to a sizeable number (approximately 200 million in India), the advertising spend on audio as a channel remains muted. “Based on our experience, audio gets less than 10 percent share of advertising spend for most of our clients,” he notes.

Das shares that currently there are two kinds of advertisers that are actively leveraging programmatic audio advertising

- Value seekers: CMP (cost per thousand impressions) on audio advertising remains quite attractive (40-50 percent lower than for video). Hence advertisers who have already attained good reach on traditional web, video, etc., are exploring audio as an alternate channel.

- The second category is when an advertisers wishes to promote niche product and placements – newer products – especially with a short shelf-life (such as an upcoming event, sale).

<strong>Variety of ad formats</strong>

Experts said that audio publishers and streaming platforms offer a variety of ad formats including display, short audio and video ads.

“Shorted audio ads up to 15 seconds on music streaming platforms like Gaana, Saavan, YT have worked for us in the past,” shares Performics India’s Das.

Swedish audio streaming platform Spotify, which entered India in February 2019, offers audio, video, display and proprietary tech which only shows ads when the user is using the screen.

“Our multi-format campaigns drive 40 percent more lift in various brand metrics as compared to just audio ads and that’s what we recommend to our advertiser partners,” says Arjun Kolady, head of sales – Spotify India.

Kolady clarifies that ads on Spotify are served to users based on their state and inputs. “…so if someone’s running using Spotify, they will only be served audio ads because they are not looking at the screen. We have upwards of 90 percent of completion rates across all our formats including audio and video. From the attention point of view, audio has the highest scale and has most moments that one can reach the consumer on but the visual formats drive more action,” he adds.

Mondelez India, for instance, has worked with Spotify. Anil Viswanathan, vice president – marketing, Mondelez India, states that within the company, audio has remained an integral part of the Cadbury Dairy Milk Silk campaigns with the product having a distinctive audio asset (its ad jingle) associated with it.

“In an effort to go where our consumers are present, for this year's Valentine's Day campaign, we zeroed in on music as a genre to leverage, and in association with Spotify, we created playlists that gave couples a chance to reveal secret messages. With personalisation transitioning from good-to-have to must-have, these audio platforms with their deep tech are able to provide personalisation that is very effective,” says Viswanathan.

<strong>Key challenges</strong>

Due to the abundance of free audio options, just three million people purchased music subscriptions in 2021, producing Rs 1.6 billion in revenue. FICCI report estimates that at best the paid subscription industry will reach 7 million paid users by 2024 at a maximum effective rate of Rs 1 per day, generating Rs 2.8 billion in subscription revenue. This means that audio streaming platforms will largely be advertising driven.

“Smartphone users in India will cross 500 mil shortly, and MAU (monthly active users) on some of the leading audio platforms are on the rise. However there are still challenges around tracking, effectiveness measurement and attribution when it comes to audio advertising. The space can unlock newer capabilities if the audio platform providers can innovate to solve these problems,” he concludes.

<strong>Note to readers:</strong> <em>Storyboard18’s new Month In Focus initiative spotlights themes and topics that are pushing marketers to reshape and rethink how brands interact with today’s customers. Our theme for this month is Stacks &amp; Strategies, a martech and adtech spotlight on how decision makers and marketers are advancing the adoption of new technologies and tech-driven strategies in the brand marketing ecosystem. From the defining trends and preparing for a cookiepocalypse to how progressive martech strategies help fast track business and brand growth. Catch this special on Storyboard18.</em>

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Benetton CEO Massimo Renon: Indian consumers will be profiled as future consumers for Benetton

Addressing Benetton's second-largest global market, CEO Massimo Renon tells Delshad Irani about the company's plans to make brand Benetton cool again.

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