Do Indian shoppers prefer Western brands over homegrown ones? Do they prefer a brand with a foreign-sounding name and a fair-skinned model as the face of it over Indian ones? The findings are apparently not so flattering, as per Mensa Brands founder Ananth Narayanan, who was also the former CEO of Myntra.
Speaking at the latest episode of Nikhil Kamath’s podcast, ‘WTF is with Nikhil Kamath’, titled ‘WTF Goes into Building a Fashion, Beauty, or Home Brand?’, Narayanan said that the clickthrough rates were higher for products with a white model. Clickthrough rates show how often people who see an ad or product listing end up clicking it.
“I have an interesting anecdote on the colour of the models. I think it is changing but if you go to a Myntra, you will find that everybody is fair-skinned. We ran an experiment where you look at clickthrough rates a long time ago and found that the clickthrough rates are actually different. So purely economically, the click-through rates on performance marketing were higher – that was some 5-7 years ago,” he told Nikhil Kamath who asked him why large companies like Louis Phillipe or Peter England put foreign models on the brand that has nothing to do with anything outside of India. He acknowledged that it worked for a long time but asked the podcast guests if it will work in the future. Apart from Narayanan, Future Group founder Kishore Biyani and content creator Raj Shamani were part of the podcast.
Narayanan also gave the example of ethnic brand Karagiri and stated that their strategy is working just as well.
“If you can find the right name...why is it that Peter England or Allen Solly has some appeal? It connotes of western wear,” said Narayanan.
When asked why the clickthrough rates on a white model were higher, Narayanan said that maybe more people associate it with being premium.
“Is it some kind of colonial baggage that we believe that western products are better than Indian ones?,” asked Nikhil Kamath. “I am sure there is but I am not big into theory but the facts are the following – the click through rates on one were better than the other. That was a fact. Will it change? I think it will but it will be a slow progression. It will not change overnight,” said Narayanan.
He further said, “I think you have to think through the brand name carefully. I think the name has to mean something…see people don’t remember facts, people remember stories. The brand name has to have a brand story associated with it…it may not be fully crafted but you need a germ of an idea and that needs to be consistent.”
Raj Shamani said that factors to make a foreign-sounding name and fair-skinned people on a brand feel premium are already at play. “Every time you buy a brand, you need to feel proud. So, if you can make people feel proud in an Indian brand, they will buy it. You actually need to find your people who find you worthy enough that they can be proud in buying your things. Why these fair-skinned, foreign-looking models, foreign names work is because it is not just you who is making the community proud, 500 other brands are also trying to do it, so that’s why it just works better because 500 people are trying to make this really good,” he said.
Shamani said that already a lot of brands show this as premium, which is why the consolidated money there just grows and makes the consumer feel more upgraded and premium, versus an individual just pushing it.
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