MUMBAI: It’s the third year of disruptive marketing communication. Established companies had a hard time understanding why this model is a thing of the past. What it all comes down to is: that customers have become market-savvy forward-thinkers.
Startups are entering the game and are giving customers what they want. They are disrupting the industry and forcing incumbents to catch up or fall behind.
WATConsult CEO Rajiv Dingra said, “It’s very important to know what disruption is — it’s not an event, it is a process, and digital creates a lot of disruption — in many ways, like pricing and promotion.”
Talking about disruptive pricing, Project X founder Nicholas Russel said, “If we think about pricing contextually, disruptive pricing is jumping in the real world and starts acting like pricing online. The main concern is about cost price and value. Considering Apple as a brand, the cost of making is $211 and the price we get it from the market is around $550, which helps in reaching the margin to $399, i.e 60%.
Comparing Amazon with Walmart, the former pays 1/3rd of what Walmart pays for its retail stores.” Amazon retail online EB/EBITA ratio is 26.41.
Talking about what e-commerce (Amazon) can do which retail can’t, he said, “E-commerce can have discounted price as compared to retail stores. And, it may lower the price for the good conditioned used products.”
“Bitcoin is going to be the biggest disrupting things in the future which is not controlled by anyone, it is the market altogether. In future, it is possible that you won’t see the price tag on products — it will be available after you scan the barcode on the product,” Russel said.
Dingra added, “Amazon is not an e-commerce company — it has now become an ecosystem company.”
Lava business head & CMO Sunil Raina said, “Disrupting only happens through technological advancements. The challenges faced by Lava to be one of the best and trusted brands in industry are rapid tech changes, short product life cycle, transparent product, demonstration-based selling, different marketing, one brand mutiple channels, multiple pricing and the ever-evolving customer.
To acheive the goal, Lava and XOLO have busted many myths in the industry and the business model of Lava and XOLO are single-layer distribution followed by cash & carry. Keeping the quality in mind it stands on two pillars — first, the consistent product quality, and second, consistent great service. “For us, quality is not a trade-off for price,” Raina said.
Lava claimed to have the highest reach of 1,65,000 retailers with $2 billion annual global revenue. About competition, Rana added, “We are building our base for the last seven years, and after an year, we will be prepared to take on Vivo and Oppo.”
SapientRazorfish VP Saurabh Das said, “Service is basically — live up to your brand promise wherever and whenever customers come calling. A brand needs to accelerate innovation in the service experience to create greater value for customers — stay differentiated & monetise.”
