In recent times, procurement agencies have come to occupy a key position in the whole eco system involving in store branding/merchandising – including brands, display manufacturers/ retail solution providers and others. Amita Karwal, MD – India, HH Global, the international procurement agency, shares with Retail4Growth, some key trends, challenges and the factors that will drive the way forward as far as in-store branding and marketing is concerned.

What kind of trends do you see as far as the in-store requirements of FMCG brands are concerned in the Indian market? Could you share some key observations in both the MT and GT context?

There is an increased focus on Modern trade as the penetration of MT is growing.
Some emerging trends are:
1. Increased skew from printable to permanent and semi-permanent displays.
2. Design has become a key driver in measuring performance of in-market product displays
3. Consumer engagement through disruptive digital engagement is being demanded by most clients now
4. Demonstrating ROI is a key ask from our clients.
5. Higher budget allocations for emerging markets other than metros
6. Sustainability solutions to meet their eco-friendly goals
7. Building transparency in supply chain as the budgets are growing

In general trade focus is on optimization, standardization and smart solutions that can help the retailer manage his space better. FMCG brands are customizing solutions for the two channels around design, material and space.

How much of the above are driven by shopper buying trends and how much by the changing retail dynamics? Is it possible to elaborate a bit on this?

It is a combination of both the factors. With e-commerce buoyancy, emergence of modern trade and changing shopper behavior, marketers and POSM specialists have recognized the need to create solutions to engage customers more uniquely than ever before. While the focus in modern trade is on design innovation and digital engagement our neighborhood Karana stores are also witnessing transformation. Brands are supporting general trade transformation by equipping them with a better infrastructure and improved store ambience. This in turn allows brands to increase their presence in store and create a bespoke brand experience.

Do you see the budgets for retail going up? Any specific area where there is greater focus?

We see a steady YOY growth. Printable over time have seen a decline in investment Focus is mostly on permanent and temporary POSM as a whole. Since the dwell time in store is limited, objective is to capture eye balls and influence a purchase in shortest time. Sharper messaging and smart design are the key focus areas currently.

Read the full interview in Point-of-Purchase August 2019 Edition.