The Impact of Digitalization on the Agarbatti Industry, from E-commerce to Online Branding – Brand Wagon News

By Anshul Agrawal

General Trade Resilience in the Face of Digital Disruption

In the age of digitalization, industries across the world are undergoing profound transformations, and the Agarbatti sector is no exception. From embracing e-commerce to redefining online branding strategies, Agarbatti manufacturers are navigating a new landscape driven by digital innovation.

The impact of digitalization on the agarbatti industry, including e-commerce and online branding, is intriguing. While many sectors have seen a significant shift towards online platforms due to the high value-to-volume ratio, the agarbatti industry faces unique challenges. Low value-to-volume ratio results in high courier costs, making online shopping less appealing. Moreover, scent plays a key role in purchasing decisions, making it difficult for consumers to experience the scent before buying online. Moreover, with most purchases being just Rs 200-300, the low value of agarbatti products does not encourage online bulk purchases. Despite these challenges, the demand for the convenience of online shopping is growing. We have also established our presence on platforms like Flipkart, Amazon and Snapdeal, as well as our own online store. However, this online growth has not significantly affected the traditional small shops, which continue to thrive in the market.

Digitalization of agarbatti advertising

In the digital age, the advertising landscape is changing significantly, with traditional media such as newspapers and TV channels giving way to digital platforms. Creating and managing brand perception is key for companies, and this often involves overcoming the entry barriers inherent to traditional advertising channels.

Unlike TV advertising, where significant budgets and production costs are a prerequisite, digital advertising offers brands a more accessible way to connect with their audiences. Even with modest budgets, companies can use digital platforms to promote their brand, target specific demographics, and optimize their advertising based on real-time data and analytics.

However, despite the affordability and flexibility of digital advertising, its effectiveness can vary depending on the existing brand presence and market reach. For us, with a nationwide presence in India, the value proposition of digital advertising may seem less compelling. While digital advertising can offer targeted reach and engagement, its impact can be limited for brands already entrenched in the market.

Instead, for national brands like ours, focusing on maintaining brand consistency, improving customer experience and exploring innovative offline marketing initiatives can pay greater dividends. By leveraging existing brand equity and distribution networks, these brands can strengthen their market position and drive sustainable growth.

The development of influencer marketing in online brand building

Moreover, the rise of influencer marketing opens up attractive opportunities for Agarbatti brands to build meaningful connections with consumers.

Unlike traditional advertising, influencer marketing offers a more personalized approach, leveraging the power of social media influencers to create engaging content around a product. While the direct impact on sales may vary, influencer marketing can foster positive brand associations and drive interest in the product category as a whole. One notable example of successful online branding in the Agarbatti industry is our association with MS Dhoni, who has been our brand ambassador for almost a decade. We have strategically leveraged the image and influence of cricket icon MS Dhoni as our brand ambassador. By partnering with a renowned and respected figure like MS Dhoni, we have not only increased our brand visibility but also aligned with the values ​​of excellence, reliability and trust that are synonymous with the cricket legend.

Fast-paced trading and the rise of last-minute gifting options

According to industry estimates, fast-paced retail has grown by 70 per cent year-on-year due to everyday needs, spontaneous demands and celebrations. Recognising the changing consumer preferences towards convenience and online shopping, Agarbatti brands can leverage digital platforms to expand their reach. By offering specially curated gift packs that suit different budget brackets, these brands can tap into the growing trend of spiritual gifting. With gift options ranging from Rs 100 to Rs 1,000, Agarbatti brands can cater to consumers’ last-minute gifting needs, positioning themselves as a convenient and thoughtful choice.

Moreover, the use of instant commerce platforms allows Agarbatti brands to leverage the spontaneous nature of gifting occasions, providing consumers with seamless access to their products at any time. Moreover, with the resurgence of spirituality and cultural pride in India, there is a growing inclination towards gifting spiritual gifts such as agarbattis. Gifting agarbattis and spiritual products is set to become a significant trend, further driving demand for accessible and aesthetic gifting options.

Puja products segment is one of the fastest growing segments as it caters to everyday puja needs like pooja oil, camphor, chandan tika etc. in a very unorganized market. Agarbatti is now also being used for lifestyle purposes due to its aromatherapeutic properties and will appeal to the millennial generation who are keen on fast-paced shopping options.

In conclusion, while the digital landscape can present unique challenges for Agarbatti brands, it also offers a wealth of opportunities for those willing to innovate and adapt. By strategically leveraging digital advertising, influencer marketing, and instant commerce platforms, Agarbatti brands can establish distinct brand identities and leverage emerging consumer trends, ultimately driving growth and success in an evolving market.

The author is director Zed Black and MDPH

(The views expressed are those of the author and do not necessarily reflect the views of financialexpress.com)

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