'Integration is the key in digital communication'
By N Jayalakshmi | March 10, 2014
Mohamed Rafeeq, Chief Executive Officer, Scala India, one of the oldest players in the area of intelligent digital communication solutions, tells V J Media, what will drive growth in the retail digital signage and communication market and how only integration across platforms on a digital medium can truly deliver a unique brand experience in-store and connect with the customer.
Market Trends - India versus the global scenario
Internationally, people have realized the full potential of the digital medium and are gradually embracing it. There is a 30 to 40% increase in y-o-y growth in the digital communication scene globally and they are now looking at interconnected signages, whether it is a device you are holding or a social media platform and integrating all of that into a single experience in retail. They have a focused approach towards it. In India to a large extent, digital simply means playing videos on the screens. Those days are over. Today the digital medium does not make sense if it does not connect with the consumers.
We have explored and showcased some fantastic possibilities with the digital platform. Example is a coffee shop offering a digtal experience wherein on a touch screen one can order coffee from the menu, and have your picture with your name flashed on the screen when your order is ready. Another example would be whisky bottles with sensors, which generates additional information on the product. There are also retail examples in the US , wherein with just a flick on a Tab, a customer can get a complete look at the product range on a video wall that is connected to the Tab. The retail brand in question actually saw good sales impact from this.
In terms of market trend, I would say digital has actaully taken off in the true sense only since last year. We were ahead of our curve when we launched in 2005. It was difficult to sell the concept. Later during 2007-08 there was a lot of demand, especially from the out-of-home segment. But then those companies realized this is not a sustainable model. Today if you look at the industry, there are very few who are making a success out of it. In terms of reail brands who use the medium, the fact is that everybody wants an experience centre and wants to 'wow' their customers, but they have no idea how.
But there are some positive signs in India and the global growth trend may be applied to the India market too. We have zoomed in on some segments such as Hospitality, Retail and the Fast fastfoods chains sector, which have good demand potential.
Digital as an after thought in retail
The challenge is that retailers in India don't think of digital as part of their VM. They are willing to spend on all other elements, but are not looking at digital communication which is an integral part. We are trying to talk to retailers and making them understand that the world is moving. Since we have gathered our learning's, we are tyring to help them cut their learning curve. The point is that today shoppers do a lot of research online before they walk into a store. They have already decided what they want to buy. So only a truly digital in-store experience can change the decision. And for that a compromised budget will not work.
Getting the content right
We have good videos, but the content running on them is not made for them. The same TV commercials run on the screens. That is really not digital, so why spend lakhs of rupees on it? Ditial content is all about engagement. Often there is no relevance to the product or the TG and it boils down to lack of understanding of the medium.
Other challenges and working around them
People need to look at digital communication on a long-term basis. Also, they must realize that this is not an area where they can can get quick results. Abroad people are willing to wait and pay for results. That change needs to happen. Also, as already mentioned, there are last minute negotiations on price. It does not work that way. They need to involve industry people during the early stages of their budgeting so complete solutions can be arrived at . A huge mindset change is required, which I must say is happening, though slowly.
Using Analytics to study impact
With the data analytics tool that we have developed we can study specific patterns, profiling etc and relate that to the sales numbers. This way clients can justify their spends. It easily takes six months to give solid data with which to work on. But like I said earlier, one must be willing to wait and spend for the results to show up.
Future and Expansion Plans
We are already expanding; we have opened an office in Mumbai, have recruited a Sales Head and enhanced our sales team. We have also moved into the solution business. We are also thinking of branded products on the Android platform. Future looks exciting, especially on the retail front with things like electronic shelf labels, and it is just a matter of time before these become a reality.
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