Onam, which marks the start of the festive season in the country, is around the corner. The floods in 2018 and 2019, followed by the global pandemic, have led to a damp festive season for the last four years, which has negatively impacted media houses in Kerala and their Onam revenue flows.
As the pandemic-induced economic uncertainties prevailing for the last two years improves slightly, brands are hopeful about a strong economic recovery his year. Media houses in Kerala are optimistic and confident about a positive Onam, which some say accounts for more than 50 pc of their annual business.
Will media spending exceed that of Onam 2019?
Varghese Chandy, Vice President, Marketing & Advertising Sales, Malayala Manorama, is hopeful that media spends in 2022 will exceed that of 2019.
“Kerala had lost out on four consecutive Onam shopping periods, from 2018 to 2021 – the first two because of the floods and the last two to the pandemic. All categories and businesses are therefore looking forward to a fruitful Onam in 2022. From the initial discussions, feedback from advertisers is that they are planning to have good spend during Onam this year,” he adds.
According to Devika Shreyamskumar, Vice President – Operations, Mathrubhumi Group, this year’s Onam is being seen as one of the best in the past five years.
“Our interactions with advertisers also reflect the same sentiment. There is a very positive outlook and energy in the market amongst retailers across Kerala. This is a reliable indication of the upcoming boom. Furthermore, this season, there is a large window of opportunity from the first day of the Onam month to the day of Onam. So, we are expecting spends higher than pre-Covid levels for sure,” she adds.
Boby Paul, Senior General Manager – Marketing, Manorama Online, is optimistic about a positive trend during Onam 2022.
“Without any doubt, this year’s media spends will exceed that of 2019, as digital advertising as a vertical has grown every single year for us unlike traditional media, so we are definitely looking for a considerable growth over last year and not just in 2019,” Paul adds.
B Surendar, COO & Director, Red FM Network, is also upbeat about this year’s Onam prospects.
“We in the radio industry are quite upbeat about this year’s festival prospects. Onam celebrations have been muted for the past two years due to the severe impact of Covid in Kerala, but from the feelers we are getting from the market, this year should be a lot better. It should hopefully be as good as 2019,” Surendar adds.
Satheesh PR, Chief Executive Officer of MMTV Ltd, believes that the trend will likely continue into Onam and beyond, as the overall number is far greater than the FY 19-20 figure.
Not all share the optimism. Satish Mukundan, Vice President- Sales & Marketing, Janam TV, notes that while companies are buoyant and hoping to do well, the numbers may not match up to pre-Covid levels with a Covid scare still looming.
The festive season, which begins with Onam, followed by Dussehra, Diwali, and Christmas, is regarded as the biggest consumption period in the country. As consumers loosen their purse strings around the festive season, brands introduce special discounts and offers.
Will consumer spends keep pace?
“Yes. Consumer spending with regards to Onam will keep pace for us as, unlike the last few years, consumers will be back at stores physically along with digital options due to the ease of Covid restrictions. Another great reason which cannot be discounted for a remittance-driven market like Kerala would be the weakening of the rupee against the dollar, which will see increased remittance this festive season, which in turn will make way for more buoyant consumer spending,” says Paul.
“With the improvement in economic activity and outlook, we believe consumers will spend to cash in on the offers during the shopping season,” observes Chandy.
“It will also be the first Onam in two years that people will be able to gather and interact with no restrictions, other than following basic Covid guidelines. This too will drive consumer spending,” he adds.
“Increased media spending is directly linked to improved consumer spends. Having not celebrated the festival which is close to their hearts for two years now, pent up festival sentiments and demand are expected to push up consumer spending by Keralites considerably this year,” observes Surendar.
Shreyamskumar observes, “When we recently conducted some events in categories like real estate, education, lifestyle, etc., we found that consumers are willing to justifiably spend. They are keenly waiting for opportunities and occasions to shop, and there is pent up demand. The current ‘Aadi sale’ and other seasonal purchase opportunities are getting good consumer engagement.”
“The Kerala State government has plans to make Onam 2022 a grand festive celebration. The advertising agencies association also had a meeting recently to gear up for Onam and has drawn up plans for its members. It is a cash-strapped government and one will have to wait and see if any positives come out, which would directly show in consumer spend. The state is definitely looking forward to a better Onam festival this time,” notes Mukundan.
“They are already keeping pace, just check the images and videos of the crowd at a leading mall in the last few days,” notes Satheesh.
Which categories will drive consumption?
“Autos, clothing, consumer durables, mobile phones, retail stores, and jewellery are some of the traditional big spenders. Most of these categories are likely to spend well. In autos, though order books are full and waiting periods have increased, new model launches and increased competition should drive advertising. For durables and garments, festival sales constitute a large chunk of annual business. The entertainment category has also significantly improved. A good number of film releases will also be planned around Onam this year. Beyond these, we also have newer categories that have emerged in the last two years. So overall, we are looking forward to a good Onam,” says Chandy.
“The typical categories driving consumption are durables, gadgets, jewellery, textiles and home decor. In addition, now, the ‘new normal’ categories like OTT, e-commerce, and IT gadgets will also gain sales momentum. Entertainment as a category will be upbeat this time with a lot of cinema and OTT releases lined up. Lifestyle products also come to life normally during the festive season. Importantly, this being the first major Onam without any looming adversities, categories like banks and real estate too will pitch in to gain consumers,” explains Shreyamskumar.
Other categories like fast fashion, food delivery and hospitality are expected to add to the kitties of media owners this Onam, according to industry watchers.
For now, the mood is upbeat. It promises to be a comeback Onam for marketers and media, if nothing untoward happens. Onam starts on 30 August and will culminate in Thiruvonam on 8 September 2022.
