In fiscal year 2022-23, VIP Industries' advertising expenses would increase by 216%
The company's promotional expenses for this fiscal year were Rs 112.51 crore, up from Rs 35.52 crore the previous year.
Sumit Rawat
VIP Industries' commercial and publicity expenses increased by 216% for the fiscal year ending March 31, 2023. The company spent Rs 112.51 crore for the fiscal year ending March 31, 2023, up from Rs 35.52 crore the previous year.
In its annual report for 2022-23, the company stated that, in an ever-changing retail sector, it is devoted to developing long-term relationships with clients.
"We elevate our brand attributes, forge emotional bonds, and ensure our brands are top of mind during critical purchasing decisions through targeted marketing and advertising initiatives." We have increased our digital footprint and enlisted the help of well-known celebrities to market our products, owing to our acute awareness of altering customer behavior. Collaborations with social media influencers have expanded our brands' digital reach even further, creating a compelling connection with our valued customers."
In November of last year, the business introduced Bollywood star Kartik Aaryan as a brand ambassador for its Skybags brand.
VIP Industries Chairman Dilip G. Piramal stated that the company delivered a great result, with growth spread across brands and channels.
"Furthermore, we have made significant progress in carrying out our transformation strategy." This path is critical, and we remain committed to driving this transformation and laying the groundwork for long-term business sustainability."
He stated that the bags and backpacks market in India is projected to be worth roughly Rs 10,000 crores, with branded players accounting for 56% of the market and the unbranded category accounting for the remaining half.
"In recent years, factors such as GST implementation, supply chain disruptions caused by the pandemic, and a shifting consumer preference for branded products have reshaped the industry landscape." To put things into perspective, while the total industry is growing at an average rate of 8-10%, the organized segment, which is synonymous with branded offerings, is growing at an outstanding rate of 15%. This demonstrates the organized segment's strong momentum and great expansion opportunities."
He also stated that the company's consistent investments in strengthening business fundamentals will help them to cater to our consumers' growing aspirations and drive growth.
