Good morning, folks! The mantra to remember when times seem a-crazy? Dory repeating in Finding Nemo “Just keep Swimming”!
Fantasy Sports dons big boy boots
In case you needed a reminder as to how many players in a cricket team, IPL’s got you covered with Dream 11 as the main sponsor. You know we are talking about a T20 tournament rife with last minute upsets considering everyone was whispering tata sons all the way which has now been overshadowed by this upstart.
How much did they shell out? They sure made the most of the sale season on IPL sponsorship, getting it at about 51% of Vivo’s commitment amount. Dream 11 will pay Rs. 222 Crores for 2020 and in case Vivo doesn’t return next year they get another 2 years at Rs. 240 Crores a year. As for Chinese giant tencent being a minority stakeholder, BCCI brushed off the concerns calling it “negligible”. As for Tatas, TOI has put it’s neck out to say that they were ready to pay up but wanted to have three of their brands ride the IPL wave whereas BCCI put a hard stop on one.
How did Dream 11 get such big bucks? From two of the Federation of Indian Fantasy Sports reports, some data can be gleaned. As per a report partnered with KPMG, market share for Dream 11 in the Online Fantasy Sports Gaming or OFSG industry stood at 90%. As per another report by FIFS, gross revenue for the industry almost tripled in FY20 to stand at Rs. 2,470 Crores. Merging the two reports, if we got the maths right, the sponsorship amount stood at almost 10% of Dream 11’s revenue in 2020. So yeah, they may be paying through their nose or their investor pockets, but Dream 11 it is for IPL 2020!
Twin vehicle subscription models in India
Consider the commitment-phobic millennial who prefers ride hailing services to spending on a car and then maintaining it to the appropriate level while not getting bored with it. Add to it, the new normal today where the risk of sharing a closed space of car pooling with strangers is not optimal. And tada! The result is subscription service or short period lease from car manufacturers!
MG Hector zooms in: One of the latest entrant in the Indian market, MG Hector has tied up with Zoom Cars to offer a 12, 24 or 36 month subscription model. No down payment, monthly instalments and ending with an option to buy the car outright or return it. MG Hector is already offering such service through partner Myles. While that hasn’t made much of a splash in it’s 18 months, coronavirus could turns things on it’s head.
And then there’s Toyota: On the same day, Toyota Kirloskar Motor announced it’s lease and subscription service for all Toyota models available. Lease can be taken for a 3-5 year period with monthly payments covering insurance, maintenance and road-side assistance. While subscription allows shorter usage of 24-48 months. This might just be the best way to get new customers back to auto-owning ways.
Consumer sentiment improving in India
Boston Consulting Group or BCG has been conducting waves surveys to track the consumer sentiment in the light of Covid-19 disruption. In the fifth and latest such round, positive vibes can be inferred from the data collected across 3000 respondents.
What are the numbers telling us? If anything, this survey is a game of relative numbers, comparing to the last wave done in May 2020. In this round, 44% respondents believed their income in the next 6 months would be lower, which was a marked improvement from 57% last time. 42% respondents expected spending to be lower in the next 6 months, which was again lower than the 53% in the last wave. The revival is stronger in lower-tier towns and among lower-income groups.
What’s the vibe like? Going by the statements of Kanika Sanghi, Lead Centre for Consumer Insight at BCG India, consumers seem to be on the mode of saying – I want to break free, but do it cautiously! Sample this. 53% have been going out to work and 66% have been meeting friends as compared to 15% and 10% in the last round (which could also be responsible for the rising cases, just saying). Essentially, while other previous rounds seemed marked by anxiety and fear, now consumers want to start lives as they know it with a dash of being careful.
Subhash Chandra reduces role in zee entertainment: Subhash Chandra resigned as non-executive director of the board and will now be the chairman emeritus, to be replaced by former finance secretary R Gopalan who has been an independent director for the last few months. Chandra’s son Punit Goenka will be the only family member to be on board. With a 94% profit erosion and 35% drop in revenue in Q1, a rejigged management could be a much-needed tonic.
Air India flight to Hong Kong out of action: 11 passengers on an Air India flight to Hongkong tested positive resulting in the country’s authorities banning the inbound flights for rest of August. This is bound to impact Vande Bharat mission and delay repatriation of Indians stuck in the island nation. Although we are not sure how this quarantine will make the test quality better.
Online pharmacy gets the Reliance shot in the arm: Reliance Retail Ventures Limited or RRVL paid Rs. 620 Crores in cash for a majority stake holder in leading online pharmacy Netmeds. Earlier, Reliance Retail had tied up with the firm to leverage their distribution and use it for Jiomart deliveries.
Finance minister changeover in Canada: Rifts with PM Trudeau over how to handle the pandemic and the muddying of name in the charity scandal rocking the bureaucracy are two reasons being given for Finance Minister Bill Morneau to quit. Deputy PM Chrystia Freeland has now been named the successor. Giving company to our own Nirmala Sitharaman, Freeland is also the first female finance minister for the country.
Hattrick of US Home building growth: Housing starts or new house building showed a 22.6% spike over last month’s figure to end at a seasonally adjusted number of 1.496 million units. This numbers came across as much better than what the economists were expecting, so glimmer of hope persists.
Bulls came roaring to the Indian equity markets with Nifty breaching the 11350 mark. India might just be taking it’s cue from Uncle Sam as Nasdaq and S&P 500 both hit all-time highs.
Indian rupee ended at a one-month high compared to USD thanks to the equity market highs, fund inflows and weak USD. On the other hand, pound rallied enough to cover up for the losses compared to USD in 2020.
Residents in Olten, a small town in Switzerland had a Willy Wonka moment when it started snowing chocolate for some time. Not to be spooky, let’s tell you that it happened due to a defect in the ventilation of a Lindt chocolate factory and strong gusts of winds buoyed it up to sprinkle fine cocoa nibs for some time. If only Yashraj still made films in Switzerland, this could well be a scene in the next romantic release!