MUMBAI: Bollywood superstar Shah Rukh Khan, backed by more than a dozen brand endorsements, has emerged as the most visible celebrity on television in the first nine months of the year followed by Katrina Kaif and Kareena Kapoor.
The top ten advertisers list, on the hand, is dominated by the consumer goods majors. While Hindustan Unilever (HUL), Procter & Gamble (P&G), and L'oreal India led the pack, telecoms major Idea Cellular and jewellery brand Gitanjali Gems emerged as the only non-FMCG advertisers on the list, according to TAM, a television audience measurement agency.
Film actors, who continue to dominate television screen space thanks to their multiple brand endorsements, have seen their presence decline, even as sportspersons (read cricketers) led by M S Dhoni and Sachin Tendulkar upped their share by 7% between January-September this year compared to the corresponding period last year.
TAM AdEx, which takes into account advertising volumes for its analysis, said sports celebrities now have 19% share of the overall brand endorsement as seen on television.
Significantly, film actresses accounted for 39% while actors had 37% share. Besides film and sports celebrities, small-screen actors and actresses had 2% share each of the overall endorsement on TV.
As far as advertisers go, the telecom sector, which used to be one of the biggest spenders till recently, has seen its share decline this year as far as its visibility goes with a lone player-Idea Cellular-making it to the top ten list. "While consumer goods players like L'oreal have stepped up advertising in a big way, the telecom brands have not been able to match the pace due to issues surrounding the sector," said R Gowthaman, Leader, Mindshare South Asia, WPP's media agency, which works for HUL, PepsiCo besides others.
"The first half of the year had the cricket World Cup and also the Indian Premier League ( IPL) which meant that a lot of brands with crickets as ambassadors were most visible. But this will come down drastically now with the Indian team having had no time to shoot any new campaigns courtesy a chock-a-block calendar," said Indranil Das Blah, COO at Kwan Entertainment, a celebrity management agency.
Both Dhoni and Tendulkar haven't signed any new deals post the World Cup despite their big win in April. Although, MSD's signing amount has gone up sharply to upwards of Rs 10 crore per annum. But one cricketer who has been on a signing spree is Virat Kohli. He is learnt to have recently signed P&G's Vicks brand making his kitty swell up to eleven brand endorsements at the price of Rs 1.5 crore per year - up from Rs 75 lakh before the World Cup win.
What catapulted SRK to the top spot among brand endorsers is the unprecedented promotion that began a few months before the release of his magnum opus, Ra One, said industry watchers. The actor, who endorses brands like Emami, Hyundai Motors, Dish TV, besides others, charges anything between Rs 7-8 crore per year. "His (SRK) rates are half of what Aamir Khan charges, which makes him more visible. Also, for Aamir brand endorsements are not really his priority at the moment," Blah of Kwan Entertainment added.
Success in my Habit
Saturday, December 10, 2011
Virender Sehwag's 219 attracts advertisers; may sign Rs 10 crore deals
NEW DELHI: With his stupendous 219-run show catapulting Virender Sehwag to the top of the one-day cricket record books, the advertisers have rushed in to sign on the flamboyant batsman with deals worth an estimated Rs 10 crore.
In pics: Virender Sehwag smashes 219, surpasses Sachin's 200
The record-breaking innings by 'Nawab of Najafgarh', as Sehwag is commonly known as, has not only made him the top-scorer in a one-day cricket match, it has also enhanced his value in the brand endorsement market, experts said.
A number of inquiries have starting flowing in from potential advertisers and the cricketer could sign atleast 4-5 endorsement deals. These deals could be collectively worth Rs 10 crore a year, going by an estimated annual fee of Rs 2-2.5 crore charged by Sehwag for every brand endorsement deal.
"In the next two months we hope to sign up with atleast 4-5 new brands," sports marketing company PMG Chief Operating Officer Melroy D'Souza told PTI.
PMG, promoted by legendary cricketer Sunil Gavaskar, handles Sehwag's brand endorsement deals.
"He (Sehwag) has come back with a bang and put to rest all the distractors at rest. There were already a few queries coming in for brands, but the interest level has clearly gone up," D'Souza said.
33-year-old Sehwag currently endorses about ten brands, including Adidas, Karbonn Mobiles, Royal Challenge, Hero MotoCorp and Emami's Zandu Balm.
According to sources, the cricketer charges between Rs 2 crore to Rs 2.5 crore for one deal per year.
Playing against West Indies at Indore yesterday, Sehwag broke his role model Sachin Tendulkar's record (of 200 runs) to make the highest score in a one-day match.
After Sachin, Sehwag has become only the second cricketer in the world to score a double-century in one-day cricket.
When asked if Sehwag's fee will jump post his latest record D'Souza said :"All the relationships that he has are for a long term and fee does not change on the basis of one event. However, his yesterday's performance will surely re- enforce brands' faith in him."
In pics: Virender Sehwag smashes 219, surpasses Sachin's 200
The record-breaking innings by 'Nawab of Najafgarh', as Sehwag is commonly known as, has not only made him the top-scorer in a one-day cricket match, it has also enhanced his value in the brand endorsement market, experts said.
A number of inquiries have starting flowing in from potential advertisers and the cricketer could sign atleast 4-5 endorsement deals. These deals could be collectively worth Rs 10 crore a year, going by an estimated annual fee of Rs 2-2.5 crore charged by Sehwag for every brand endorsement deal.
"In the next two months we hope to sign up with atleast 4-5 new brands," sports marketing company PMG Chief Operating Officer Melroy D'Souza told PTI.
PMG, promoted by legendary cricketer Sunil Gavaskar, handles Sehwag's brand endorsement deals.
"He (Sehwag) has come back with a bang and put to rest all the distractors at rest. There were already a few queries coming in for brands, but the interest level has clearly gone up," D'Souza said.
33-year-old Sehwag currently endorses about ten brands, including Adidas, Karbonn Mobiles, Royal Challenge, Hero MotoCorp and Emami's Zandu Balm.
According to sources, the cricketer charges between Rs 2 crore to Rs 2.5 crore for one deal per year.
Playing against West Indies at Indore yesterday, Sehwag broke his role model Sachin Tendulkar's record (of 200 runs) to make the highest score in a one-day match.
After Sachin, Sehwag has become only the second cricketer in the world to score a double-century in one-day cricket.
When asked if Sehwag's fee will jump post his latest record D'Souza said :"All the relationships that he has are for a long term and fee does not change on the basis of one event. However, his yesterday's performance will surely re- enforce brands' faith in him."
FDI in retail: Are commission agents really that bad?
A few days before the government stopped foreign investment in retail dead in its tracks, ET on Sunday caught up with A Mohammad, a commission agent or arthiya at the fruit and vegetable mandi in Okhla in south Delhi.
Such agents are essentially dealers, who buy produce from the farmers and then supply them to everyone, from hotels to the neighbourhood vegetable seller. An executive in an agribusiness company who deals with Mohammad described him as one of the two biggest dealers of carrots in the mandi. "Together, these two arthiyas dominate the trade in carrots," said the executive.
Okhla mandi is much smaller than the giant Azadpur mandi situated in north of Delhi, but it still handles thousands of kilos of vegetables and fruits per day, which pour in by trucks from all parts of India. But to look at him, you wouldn't think Mohammad (everyone in the business calls him Pappu) dominates much of anything. He's the kind of person who you would pass by on any street without a second glance.
When ET on Sunday asked him about his thoughts on the new policy on FDI in retail (still undead at the time), Mohammad said: "I am illiterate. I don't know much about these things." When prodded he did confess to being worried about the new FDI policy, but he actually seemed barely concerned.
Squeezing Both Sides
It is Mohammad, and his fellow arthiyas in Okhla, Azadpur and hundreds of other agricultural markets in the country who are the poster boys for much that is wrong with the trade in agricultural produce, and the reason why foreign investment in retail, or organised retail is needed.
They are accused of contributing to an enormous wastage of produce, and underinvesting in critical market infrastructure such as cold chains which prolong the life of otherwise perishable commodities. They are also seen as squeezing both sides, paying farmers a low price for their produce, holding onto a fat margin, and forcing consumers to pay high prices (officially, the arthiyas in Delhi take a 5% commission on what they buy, with a further 1% being paid as tax to the mandi).
By reaching out and procuring directly from the farmer, by investing in the necessary infrastructure, and by the ability to process large volumes, the big retail chains, whether a Reliance Fresh or a Walmart, would be able to cut out the many intermediaries (anywhere between four and seven) in the current flow of food from farm to a consumer's plate. Farmers would get a higher price and consumers would still be charged lower prices for the goods they buy.
If there is one aspect of the retail trade where this vision of the future will probably be most tested, it will be in the marketing of fruits and vegetables. It is here that the problems of the agricultural trade are starkest, sharp price spikes in one year (or even over a few months), followed by sharp price falls, and high levels of perishability and wastage of produce.
Such agents are essentially dealers, who buy produce from the farmers and then supply them to everyone, from hotels to the neighbourhood vegetable seller. An executive in an agribusiness company who deals with Mohammad described him as one of the two biggest dealers of carrots in the mandi. "Together, these two arthiyas dominate the trade in carrots," said the executive.
Okhla mandi is much smaller than the giant Azadpur mandi situated in north of Delhi, but it still handles thousands of kilos of vegetables and fruits per day, which pour in by trucks from all parts of India. But to look at him, you wouldn't think Mohammad (everyone in the business calls him Pappu) dominates much of anything. He's the kind of person who you would pass by on any street without a second glance.
When ET on Sunday asked him about his thoughts on the new policy on FDI in retail (still undead at the time), Mohammad said: "I am illiterate. I don't know much about these things." When prodded he did confess to being worried about the new FDI policy, but he actually seemed barely concerned.
Squeezing Both Sides
It is Mohammad, and his fellow arthiyas in Okhla, Azadpur and hundreds of other agricultural markets in the country who are the poster boys for much that is wrong with the trade in agricultural produce, and the reason why foreign investment in retail, or organised retail is needed.
They are accused of contributing to an enormous wastage of produce, and underinvesting in critical market infrastructure such as cold chains which prolong the life of otherwise perishable commodities. They are also seen as squeezing both sides, paying farmers a low price for their produce, holding onto a fat margin, and forcing consumers to pay high prices (officially, the arthiyas in Delhi take a 5% commission on what they buy, with a further 1% being paid as tax to the mandi).
By reaching out and procuring directly from the farmer, by investing in the necessary infrastructure, and by the ability to process large volumes, the big retail chains, whether a Reliance Fresh or a Walmart, would be able to cut out the many intermediaries (anywhere between four and seven) in the current flow of food from farm to a consumer's plate. Farmers would get a higher price and consumers would still be charged lower prices for the goods they buy.
If there is one aspect of the retail trade where this vision of the future will probably be most tested, it will be in the marketing of fruits and vegetables. It is here that the problems of the agricultural trade are starkest, sharp price spikes in one year (or even over a few months), followed by sharp price falls, and high levels of perishability and wastage of produce.
Hitachi plans rail car JV in India: Nikkei
Hitachi Ltd plans to sign a joint venture agreement with an Indian firm early next year to assemble rail cars, Japanese business daily Nikkei reported.
The conglomerate plans to export India-made rail cars to Southeast Asian nations, such as Thailand and Vietnam, where it now sells cars made at its Yamaguchi plant, the newspaper said.
To bank on opportunities in India, which is aggressively investing in railway infrastructure, Hitachi wants to wrap up partnership talks early next year and start building a factory as soon as possible, Nikkei said.
The company will also set up a manufacturing base in the UK and plans to build a joint venture factory in Brazil, the business daily reported.
Hitachi expects to boost railway-related sales to 320 billion yen in 2015 from 133.1 billion yen in 2010, with 60 percent of that sales coming from overseas over this period, Nikkei said.
The conglomerate plans to export India-made rail cars to Southeast Asian nations, such as Thailand and Vietnam, where it now sells cars made at its Yamaguchi plant, the newspaper said.
To bank on opportunities in India, which is aggressively investing in railway infrastructure, Hitachi wants to wrap up partnership talks early next year and start building a factory as soon as possible, Nikkei said.
The company will also set up a manufacturing base in the UK and plans to build a joint venture factory in Brazil, the business daily reported.
Hitachi expects to boost railway-related sales to 320 billion yen in 2015 from 133.1 billion yen in 2010, with 60 percent of that sales coming from overseas over this period, Nikkei said.
Bullet train between Hyderabad and Chennai in the offing
HYDERABAD: If Indian Railways has its way, commuting between Hyderabad and Chennai in a few years will be just a little over two hours and terribly cheaper as compared to a flight. Hinting at such a possibility, a senior railway ministry official said in New Delhi on Thursday that a Japanese consortium has bagged the contract for a pre-feasibility study for running a bullet train on the Hyderabad-Vijayawada-Chennai corridor.
If it works out, at a speed of 300 km per hour, the train will cover the 664 km distance between Hyderabad and Chennai in just little over two hours. South Central Railway (SCR) officials became jubilant over such a development, though they indicated that they are still awaiting the details of the project. "Besides reducing the travel time between the two cities by almost 12 hours, the bullet train will transform the economy of the region as well as greatly contribute to the economic growth of both Hyderabad and Chennai," SCR chief PRO K Sambasiva Rao told TOI.
Japan External Trade Organisation (Jetro) and Oriental Consultancy along with Parsons Brinkhoff India has bagged the contract to conduct the pre-feasibility study on the proposed route for running the high speed train, a senior Railway Ministry official said.
Japan's high speed trains Shinkansen operate at a speed of up to 300 km per hour and are known for their punctuality, comfort, safety and efficiency.The consortium will submit the report in seven months. The study is expected to cost the railways about Rs 3. 5 crore. There were 13 bidders for the high speed rail project.
In order to expedite the bullet train project, Railways is in the process of constituting the National High Speed Rail Authority on the lines of the National Highways Authority.
According to an estimate, it will cost about Rs 100 crore to construct a one-km dedicated high speed corridor. As per the preliminary report, ridership revenues would be able to cover the operating cost of the project. State governments and financial institutions are expected to be stakeholders of the high speed rail corridor project as these projects will be executed through PPP mode.
If it works out, at a speed of 300 km per hour, the train will cover the 664 km distance between Hyderabad and Chennai in just little over two hours. South Central Railway (SCR) officials became jubilant over such a development, though they indicated that they are still awaiting the details of the project. "Besides reducing the travel time between the two cities by almost 12 hours, the bullet train will transform the economy of the region as well as greatly contribute to the economic growth of both Hyderabad and Chennai," SCR chief PRO K Sambasiva Rao told TOI.
Japan External Trade Organisation (Jetro) and Oriental Consultancy along with Parsons Brinkhoff India has bagged the contract to conduct the pre-feasibility study on the proposed route for running the high speed train, a senior Railway Ministry official said.
Japan's high speed trains Shinkansen operate at a speed of up to 300 km per hour and are known for their punctuality, comfort, safety and efficiency.The consortium will submit the report in seven months. The study is expected to cost the railways about Rs 3. 5 crore. There were 13 bidders for the high speed rail project.
In order to expedite the bullet train project, Railways is in the process of constituting the National High Speed Rail Authority on the lines of the National Highways Authority.
According to an estimate, it will cost about Rs 100 crore to construct a one-km dedicated high speed corridor. As per the preliminary report, ridership revenues would be able to cover the operating cost of the project. State governments and financial institutions are expected to be stakeholders of the high speed rail corridor project as these projects will be executed through PPP mode.
Global financial assets, including India's, to be worth $317 trillion by 2020: McKinsey
EW DELHI: The value of financial assets worldwide is expected to touch $ 371 trillion by 2020, with emerging economies including India, accounting for about one third of the total amount, says global consultancy McKinsey.
The projected worth of financial assets in 2020 would be nearly double the value of around $ 198 trillion witnessed last year.
These projections are part of a report prepared by the McKinsey Global Institute (MGI), the business and economics research arm of McKinsey & Company.
In 2010, emerging economies made up for 21 per cent of the global financial assets worth $ 198 trillion.
"Depending on economic scenarios, we project that emerging market financial assets will grow to between 30 and 36 per cent of the global total in 2020, or $ 114 to $ 141 trillion.. China's financial assets could be as much as $ 65 trillion by then, and India's could reach $ 8.6 trillion," the report said.
As per MGI, financial assets are equities, bonds, other fixed-income securities, cash, bank deposits and alternative assets. The value of real estate, derivatives, physical assets such as gold and equity in unlisted companies are excluded.
The report noted that emerging market financial assets grew 16.6 per cent annually over the past decade -- about four times the rate in mature economies.
"These assets stood at about $ 41 trillion in 2010 and constituted 21 per cent of the global total, up from 7 per cent in 2000," it added.
In terms of allocation, investors might put in just 22 per cent of their financial assets in equities by 2020 as compared to 28 per cent in 2010.
"The rise of wealth in emerging nations is the largest factor in this shift, followed by ageing populations and growth of alternative investments," the report pointed out.
Regarding India, MGI said that households are the largest investor class -- holding 42 per cent or accounting for $ 835 billion of the country's financial assets worth $ 2 trillion.
Noting that Indian household investors prefer gold and real estate to financial assets, the report said the government holds more than a quarter of all financial assets.
"This $ 560 billion portfolio is largely invested in bonds and the listed equity of corporations. Banks are also investors, with $ 280 billion in securities...," it said.
The projected worth of financial assets in 2020 would be nearly double the value of around $ 198 trillion witnessed last year.
These projections are part of a report prepared by the McKinsey Global Institute (MGI), the business and economics research arm of McKinsey & Company.
In 2010, emerging economies made up for 21 per cent of the global financial assets worth $ 198 trillion.
"Depending on economic scenarios, we project that emerging market financial assets will grow to between 30 and 36 per cent of the global total in 2020, or $ 114 to $ 141 trillion.. China's financial assets could be as much as $ 65 trillion by then, and India's could reach $ 8.6 trillion," the report said.
As per MGI, financial assets are equities, bonds, other fixed-income securities, cash, bank deposits and alternative assets. The value of real estate, derivatives, physical assets such as gold and equity in unlisted companies are excluded.
The report noted that emerging market financial assets grew 16.6 per cent annually over the past decade -- about four times the rate in mature economies.
"These assets stood at about $ 41 trillion in 2010 and constituted 21 per cent of the global total, up from 7 per cent in 2000," it added.
In terms of allocation, investors might put in just 22 per cent of their financial assets in equities by 2020 as compared to 28 per cent in 2010.
"The rise of wealth in emerging nations is the largest factor in this shift, followed by ageing populations and growth of alternative investments," the report pointed out.
Regarding India, MGI said that households are the largest investor class -- holding 42 per cent or accounting for $ 835 billion of the country's financial assets worth $ 2 trillion.
Noting that Indian household investors prefer gold and real estate to financial assets, the report said the government holds more than a quarter of all financial assets.
"This $ 560 billion portfolio is largely invested in bonds and the listed equity of corporations. Banks are also investors, with $ 280 billion in securities...," it said.
75mn households in India are ecommerce ready but less than 10mn actually transact
According to a study released by Internet and Mobile Association of India (IAMAI) and Intelink Advisors, there are around 75 million households (150 million people) in India, who are ready for ecommerce transactions today but, less than 10 million are engaged in active ecommerce. Citing the key reasons for this mismatch between potential and actual ecommerce consumers, the study states holds lack of trust, fulfilment issues, shopping experience as major impediments.The study adopted criteria of income, education and occupation to arrive at the number of household capable of ecommerce.
According to IAMAI, the current size of ecommerce market in India is about US$ 10bn and the size of ecommerce in India by 2024-2025 can reach between US$ 70 billion – US$ 150 billion and the potential is between US$ 125 billion – US$ 260 billion. The ‘Core’ potential of for consumer ecommerce is likely to increase to around 230 million households or 460 million individuals by 2024-2025, as the ‘Low SEC’ is set to increase at lower rate with about around 174 million individuals capable of ecommerce.
According to IAMAI, the current size of ecommerce market in India is about US$ 10bn and the size of ecommerce in India by 2024-2025 can reach between US$ 70 billion – US$ 150 billion and the potential is between US$ 125 billion – US$ 260 billion. The ‘Core’ potential of for consumer ecommerce is likely to increase to around 230 million households or 460 million individuals by 2024-2025, as the ‘Low SEC’ is set to increase at lower rate with about around 174 million individuals capable of ecommerce.
IBM to buy DemandTec for $440 million
ARMONK, New York: IBM says it is buying DemandTec, a price-management software company, for $440 million in cash to expand its commerce service offerings.
International Business Machines Corp. said Thursday that it is paying $13.20 per share for San Mateo, California-based DemandTec Inc. That's a 57 percent premium to DemandTec's closing stock price of $8.43 on Wednesday.
International Business Machines Corp. said Thursday that it is paying $13.20 per share for San Mateo, California-based DemandTec Inc. That's a 57 percent premium to DemandTec's closing stock price of $8.43 on Wednesday.
Facebook IPO sparks dreams of riches, adventure
Travelling to space or embarking on an expedition to excavate lost Mayan ruins are normally the stuff of adventure novels.
But for employees of Facebook, these and other lavish dreams are moving closer to reality as the world's No. 1 online social network prepares for a blockbuster initial public offering that could create at least a thousand millionaires.
The most anticipated stock market debut of 2012 is expected to value Facebook at as much as $100 billion, which would top just about any of Silicon Valley's most celebrated coming-out parties, from Netscape to Google Inc.
But for employees of Facebook, these and other lavish dreams are moving closer to reality as the world's No. 1 online social network prepares for a blockbuster initial public offering that could create at least a thousand millionaires.
The most anticipated stock market debut of 2012 is expected to value Facebook at as much as $100 billion, which would top just about any of Silicon Valley's most celebrated coming-out parties, from Netscape to Google Inc.
Alibaba seeks $4 billion financing to buy stake held by Yahoo, say sources
Alibaba Group is seeking up to $4 billion in debt financing, sources familiar with the matter said on Thursday, in a deal expected to help the Chinese e-commerce giant buy back a 40 percent stake in the company owned by Yahoo Inc.
Sources close to the situation said Rothschild, which is acting as debt adviser to Alibaba, had sent out term sheets to banks requesting underwritten proposals for the debt financing. The tenor of the debt expected to be up to three years. Reuters was unable to obtain a copy of the term sheets.
Alibaba Group, founded by entrepreneur and former English teacher Jack Ma, declined to comment. Alibaba, as a parent company, holds a 73.12 percent stake in Hong Kong listed Alibaba.com Ltd.
A Rothschild representative was not immediately available for comment.
Sources close to the situation said Rothschild, which is acting as debt adviser to Alibaba, had sent out term sheets to banks requesting underwritten proposals for the debt financing. The tenor of the debt expected to be up to three years. Reuters was unable to obtain a copy of the term sheets.
Alibaba Group, founded by entrepreneur and former English teacher Jack Ma, declined to comment. Alibaba, as a parent company, holds a 73.12 percent stake in Hong Kong listed Alibaba.com Ltd.
A Rothschild representative was not immediately available for comment.
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