 Hello everyone. We have Ms. Ramit Tiwari, Vice President of Marketing. Have us with us here. Thank you very much for joining us. So the context of this conversation is how non-meters are driving the next phase of growth in the country and how is the consumer adorable category adopting these changes and where the focus now stays as far as non-meters leading the economic resurgence is concerned. So we would like to know from you, Mr. Tiwari, how has these last six months been for havels as a consumer adorable brand and what are some of the key learnings during the period? So thank you, Deepali. Thank you for hosting me. I think it's a wonderful platform to be to share my particular learning specifically when it comes to non-meters, which most of the people and we also believe that it's the real Bharat and that is where the entire growth will actually look. So before we get into how has been for last six months, I think if you see for last five years data, 2015 to 2019, 2020 data is just to come, metros have grown on an average of from 25 to 28%. Whereas if you see the non-meters, they've already reached around 45% close to. So what has happened is now the growth, the entire trajectory of growth has actually changed from metros to non-meters because that is where the entire particular appetite is happening. Now the bigger question is what exactly it is the growth that is coming? Is it only to durables? It is only to every sector you talk about. You talk about appearance, it is going faster in non-meters. You talk about automobile, it is going faster in non-meters. If you talk about mobile phones, if you talk about white goods, if you talk about durables, kitchen apps, everything is going exponentially high when it comes to non-meters to look for. Is it something that has happened over six months or no, it has not happened over six months or something as to look for? It has happened beyond. Why it has happened is because entire electrification of India, if you compare between 2015 and 2020 today, that is what a rampant pace in terms of the way it has actually moved. Today, the quality of electricity, the quality of power that you get is much, much better. The propensity of people to spend on those markets are very high. But what was the drawback that most of the brands were not reaching to those markets? Why they were not reaching to those particular markets in fatalities? It is because people were not thinking that the propensity to spend will be higher. Will they be spending for a, let's say 75-inch television? Will they spend on a 65-inch television? Why will they not? They have all the wearables, now they have electricity. They have the entire particular connection in terms of Wi-Fi, the current internet penetration is also grown high. And thanks to Geo and other particular mobile data providers who have actually been concentrating across these Bharat markets to bring it across. What has happened in the last six months is the COVID situation has actually given a catalyst to all these markets because the impact of COVID was quite less. All of your lockdown, unlock and everything, these guys were least affected in the entire process lookbook. So their entire particular revamping becomes much faster. These revamping becomes much, much faster in the entire space. Due to which what has happened is they have started showing progress and they have started showing signs much better than as compared to metros today. Right. So if they're in terms of, if we look at the consumer behaviour changes, you know, in terms of product categories, have you noticed, say, are they going for semi-premium or are they going for a premium brand or what's the kind of demarcation in the category? See, the bigger thing that they're actually looking for it is, it can be classified under three A's. They're actually looking for something which is affordable and it is not affordable by price. It is affordable by their particular needs. And what does that actually mean? So for example, if somebody has a family of seven or eight people, is this particular product is affordable to serve to my particular entire family? Second thing is also very important is authenticity. What happens is most of the people, if you see, think that they will do some particular changes in their particular P2 or P3 market used to call five or seven years back, is the product real authentic? And the third thing which is more, more in most in the most valuable input which goes from the entire three A's to talk about is, is action. Is there a nearby store where I can actually buy or is it the online fulfilling my demand? How is the entire particular piece moving in the entire ecosystem? And because of that, see, it's not a, it's not a, when people say, it's a price conscious market, no, it's not a price conscious market. They're a value seeking market. If I'm spending something, am I getting the value for my family and for myself, whatever it is, and any category that need to look for. And that is why if you see, most of your entire e-commerce platform, the amount of searches that has, has emerged in the last four or five months, the amount of searches that has come from all these non metro market has increased to two X, it has increased to two X across category. I can, I can name the categories that you talk about whether it is automobile, whether it is digital services, whether it is online learning, white goods, consumer goods, entertainment, it has, it has gone to that level today. So it is, it is nothing to do with premium or not premium. It is, is this particular product serving my need? I am ready to pay extra. I'm ready to shell out extra. I'm ready to do an extra mile to get this particular product in my particular portfolio of household that I have. Okay. Okay. So you mean even online sale also increased during this, see online has actually increased and online has actually done a very, very different job in the entire market. So distribution is a costly business. If you, if you actually see putting up a shop, doing a particular, running a particular shop or a showroom or your brand store, it's a, it's a, it's a costly proposition. What has done these particular two platforms, all your platforms, what they have done is first is the education. How would I come to know about my particular product? What does people think about my product? So your ratings and reviews and everything to get on these platforms, you know, and, and you're also fulfilling. So today, let's say I decided I stayed somewhere in the outskirts of let's say, Rachi or partner or somewhere, and I have a desire for a headphone. And when I went to it, I found that, okay, by bosses is the best headphone that can actually be suffice for this particular, but what people are talking about the selection of product, which I had done, how people look. So I'm also getting educated that it's a noiseless thing. Will both able to set up a store near Rachi or something, it will never do. Either you would be sold in a large format at all, or either you sell it in the larger or a regional retail store, but not your own particular store. How are you going to do it? I am getting education. My entire particular fulfillment is happening from there. And I'm also trying to build this entire particular ecosystem. That's how it is. Okay, great. And even touch and feel and demonstration also becomes important on physical stores like and that becomes a critical part of the ecosystem. So how are you addressing this in the non metros? See, there are a lot of regional details that have already been placed, which are, which are, which are confined to their different geographies to actually talk about. So everybody has every region store has their own strength across the entire spectrum of India that you talk about. So people definitely want to have a touch and a feel to look. But if you see one thing, the Pali in last five to six months, one thing has also changed from a consumer behavior standpoint is nobody really want to touch a product today. Because that's, that's the biggest difference that a consumer really want to do it. And if you, if you have noticed in last four or five months, right from a plywood manufacturer to a garment manufacturer to let's say a soap manufacturer to your apostrophe manufacturers, everybody is talking about antivirus promotion that is antivirus laminates, antivirus, your clothing, antivirus, your stitching material, clothing material, everything is, is talking about that kind of why they're actually trying to do because end of the day, if you want to buy a cloth, you definitely want to see what's the texture and how does the feel of it. But today, really people for a, for a goods and specifically for a product that you really want to buy, nobody wants to touch it. People say, I will only touch it when I am satisfied with all this annotation that I can actually do for in the entire space. So that's, that's the shift that is happening across. It is not about only metros, non-metals anywhere that is moving across. So today, I think that is not taking the front seat, which used to be that people really want to have a touch and a feel that is important. It is important, but that's not very urgent today. To that the urgent need is who is fulfilling my demand because I am ready to shell that particular money out. I have my way about to do it. Who is trying to do and who is trying to make that most out of it? Now you mentioned about geographically, if you look at the entire India, what are some of the triggers that has created higher demand across different regions? If you can give example, how's the northern region or the western region? I think that would be difficult to say today because still everybody is recovering more from the entire particular lockdowns and semi-lockdowns and district lockdowns and state lockdowns. I think the demand has been everywhere and it's also a reason because of the pent up demand which was there to not be fulfilled for a couple of months. But I think unilaterally the demand is there across India, across the entire spectrum. And if I take a data which was published, I think by Flipkart or somebody else, I guess it was Flipkart who actually published a data after this, 6th to 7th August car, a sale which actually happened. 50% of their particular orders has come primarily from non-micro. 50%. I think it is 50%. I will just check in. It is 50% what I remember to the best, it is 50%. So the idea is that demand is there and it is coming across the spectrum that we actually talk about. It's only thing that our view as a brand, every particular brand is able to fulfill that demand. I think that's a bigger and a larger question today. Okay, so I have two questions. One is what percentage of your sales is coming from non-meters if you can give a number on that and how do you see in this share increasing going ahead and how important is non-meters in your marketing mix and how are you putting it together in your overall marketing plan? See, so first question I can't answer because we're in a quiet day. So I can't tell you anything. Just because we're a listed company, we'll just be having relevance to an offer. Second question, I see non-meters is a very significant part of the entire mix to look for. And if you talk about from the overall balance, they are the heart of any particular marketing campaign that we do in Havels today. And it is very, very important because apart from both and also, it's also give you a larger brand promise and also larger brand acceptance in those particular markets. What happens to those particular brands and acceptances? Your reach increases. You also have to increase your particular consumer base because these are the people who are ready to experiment with your particular product and categories. So if you ask me, they are very important, they are the heart of our particular marketing proposition, which is very, very dear and very, very closer to us. The festering and the wedding season is, you know, it has already started. So what is the demand that you're anticipating particularly from the non-meters? I think demand, what we look for it, I think will be very, very good. And definitely, it will be a good demand. Also, if you see, but still we may talk about India still is 63%. It's an agriculture agri-based economy, which is there. It's been a good agriculture season. The monsoon has been very, very good. So the demand would be very, very good. Also, what has happened is this time, the festival also starts late in the year. So even the impact of the COVID will also be a little dried down by that amount of time. Plus also, your impact would be much more higher for people to have a chance and people have a reason and occasion to buy. Definitely, quite hopeful in terms of the demand would be very, very good. Have you noticed any particular consumer behavior change in these six months that you see are going to stay permanent going forward also? I think first thing is physical contact and physical visit in terms of buying any particular products would definitely be a big change in the consumer. Because today, everything is happening at the click of the button. And you just have to be with your mobile and that's your biggest companion together today for everything. It is for entertainment, for any needs that you have, for your basic calling needs, for your ordering a product. I think this will definitely stay for quite long. Also, I think the quotient of hygiene that has actually increased in India was not there. And I think you'll agree with me in terms of the way people are cautious today in terms of their own health, cautious in terms of their own hygiene factors today, which is definitely even today, there are a lot of conversations which we listen on social listening and people talk about what are the basic cleaning needs that you do when the product is arrived, what are the cleaning needs that you actually focus when the product is looking. I think that is definitely going to stay. Also, one thing which is very important is the dependency on going to the market, dependency only on depending on certain particular whereabouts even in any particular whether it's metro, non metro, whether it is a satellite market or it's a satellite town will not be there anymore. So you will not be dependent on a larger market today because today the power of the shift of consumer of movement of buying is in consumer hands because all these platforms, their deep rooted penetrations actually move. This is definitely going to say because this has become a practice in part of your life. And what happens is it's always saying that once your habit is spoiled, you always want to keep that spoiled habit for life to move across. And I think that's a good habit to actually move because that will make a huge difference in the way you really want to look the entire movement of your habits that are moving. Yeah, what do you think would be the key drivers of growth for the consumer durable strategy going forward? I think the biggest driver of growth I would look for is the amount of agility that you can bring in terms of as per the consumer needs. How are you actually trying to adapt and how are you trying to re-adapt and re-circle yourself and as fast you can actually reach out to consumer for their particular needs. Second thing is which is also most important is how much you are accessible and how much is your accessibility can actually bring in the entire ecosystem. Are you are able to reach to the point that the consumer need to look for in this entire omnichannel world? Are you able to get every ducts and every particular touch point where consumer look for it? That's all. Third thing which is also most important is are you able to make it affordable? That is that will actually trigger today because it is not again I'll repeat it's affordability is not by reduction of price or lower the price. It is about what is the value that I'm actually creating and what is the value that I'm trying to build with the same money that I'm trying to shell out. I don't have a problem of shelling out the money but I have the problem of do I really believe on the features and the product that I'm trying to build me is a real justification for the value for the money and lastly it is again it is all about authenticity because what happens is and you must be hearing about well a lot of people talk about that the product which I got from any of the platform was was a fake or a first copy so authenticity becomes what happens if the authenticity breaks down that entire your entire transit of the entire trust that actually goes in a big big big fashion and apart from the anything that that will also circle there is a there's also a very simple framework which most of the people follow today which is also a 3D framework which actually talks about trust transparency and technology. So are you able to build the technology so that everybody has an access on their particular hand and it is it is it's a glitch-free technology because internet is already reached and today the discussion of infrastructure internet is gone you don't need laptops you don't want to invest because mobile is the biggest revolutionary tool that you have. Second thing is are you able to transparently deal the confidence that you want to do is there still people are hesitant in terms of doing an online payment and transition that is what we need to build from an infrastructure and the the largest and the last and the largest point and the most important point is are you able to build that trust because these are all volumetric products people doesn't want to it is not about 2000 1000 5000 invest their volumetric products if you're able to build all the three I think the the sky will be even less for you as to limit and to get your particular limit. This last question you mentioned reach is also very important across for non-metals what is one of the key challenge that you face in terms of reaching out to all these metros I don't think to see reaching out is a challenge today because today you can reach out to different means you don't have to be only with the physical store to be you can reach out to to different the idea is you really need to map the markets according to the their requirement rather mapping the market according to what you can offer in full fit that's that's a bigger bigger challenge what happens is mostly people decide their particular strategies without keeping in mind what is the need of that individual market and every market India is not about only one market India is a 26 different markets and you have to have a different approach so one size one market approach doesn't fit for all one size will not have a replication on the other the only thing that you can do you can take learnings but that learning will not be that much effective what you need to do you have to craft a different approach different marketing proposition for every market that you really want to cater and really want to capture okay that's an amazing insight thank you so much for sharing your views on this entire non-market non-metal market thank you thank you so much with me and thanks everyone thank you so much