E-tailers as sponsors in India — Absolutely !

Anyone with a smartphone and a decent internet connection in India would most surely engaged in some form or the other with e-commerce websites. The country has slowly but steadily adapted to on-line retailers and have made the transition from physical shopping to online purchases. Indian players like Paytm are set to receive the biggest funding ever by an Indian organization

Paytm took over the title rights of all BCCI matches till 2019 making it among the highest value deals signed an year back. Amazon India secured the title sponsorship of the India Fashion Week, displacing Wills Lifestyle. India’s giant e-commerce companies are now looking to take up sponsorships of major television shows, fashion and sporting events to increase their visibility. Case in point Flipkart, who have already splashed mega-bucks on the Indian Super League and the Pro-Kabaddi League to ramp up their brand quotient.

Two years back, Snapdeal.com replaced a major player like Vodafone as the main sponsor of Bigg Boss. The Delhi-based online retailer is also an associate sponsor of the Bangalore Fashion Week. Online fashion retailer Jabong has been an associate sponsor of Lakme Fashion Week post its acquisition by Myntra and official retail partner of marathons in Delhi, Mumbai and Bengaluru. Myntra is sponsoring a women’s marathon event in Bengaluru.

“Being a brand which is connected to youth…fashion and sports are the areas to create our communication and our brand positioning,” said Praveen Sinha, ex managing director of Jabong in a statement to the Economic Times.

A Snapdeal spokesperson also echoed the same line of thinking said, “We evaluate various opportunities for partnerships for brand building and take decisions based on the returns on investment from any association.”

At Onspon we evaluated certain strategic decisions by e-retailers and found that there exists tough competition amongst them in the sponsorship zone. We expect them to continue advertising awith aggression on traditional channels like television and print to strengthen their brands. Its a user behaviour management stage , and needs a continuos engagement with top brands.

Loaded with private equity money, online companies have been splurging on advertising in recent months as more and more consumers across the country have migrated online. With the recent turn of events, its been tightened but in no way is going the path of reduction.

In an estimated assumption, it can be deduced that e-commerce companies have forked out INR 300 crore on advertising during the last festive season of October-December quarter, outspending brickand-mortar retailers almost 15–20 times.

Fashion, lifestyle and Sport have been the quickest growing segments for e-commerce companies. Amazon, a relatively late starter in selling fashion, is currently playing catch up with the likes of Myntra — and has already displaced a lot of players from their comfort zone.

With several high-visiblity based properties on offer it is likely that we will see more from the e-retailers as we head into the second half of 2017.

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Written by : Hitesh Gossain (CEO, Onspon.com)

Onspon.com specializes is creating fantastic opportunities of association for hundreds of brands with millions of events. We aspire to the be the go-to place for global brands and events to find each other in a clutter free transaction oriented environment.

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