94% purchasing power of cities available for brands, says Laqshya Media Group study
By M4G Bureau - June 18, 2020
The study says that with India opening up in phases, this is the right time for brands to reboot
A latest report released by the Laqshya Media Group explores the loss of opportunity to businesses posed by these containment zones where business activities are still limited to essential services in the Unlock Phase 1 scenario. The report states that the entire new consumer classification system (commonly known as NCCS) D & E population, based in top eight cities, is inaccessible if the containment zones are sealed which comprises of 15% of the total population but constitute only 6% of the purchasing power in the metros. This 6% adds up to INR 5,000 crores across the cities but most of the money of these segments are reportedly spent on food products/FMCG and housing.
However, 94% of the purchasing power of the cities is available for brands across verticals, except to FMCG, food and housing brands. Hence, businesses of all verticals have the opportunity to re-engage with the NCCS A, B and C segments now, to make up for loss in business incurred in the last couple of months.
The agency has used SHARP, their in-house Strategic Hyperlocal AI-powered Reach Planner to estimate the size and socio-economic attributes of the population living in containment zones.
Also, it presents evidence that traffic is quickly getting back to normal across the cities- thereby bolstering the opinion that the time is ripe to re-connect with audiences that have been copped up at home with little commercial stimulus.
Atul Shrivastava, CEO, Laqshya Media Group, said “Businesses had come to a halt due to the lockdown in India. But with India opening up in phases this is the ideal time for brands to reboot their marketing efforts. Brands have to re-capture the mind space of their target with campaigns balanced between awareness and sales pitch. If brands utilize this time right then they can recover their losses within this financial year.”