Anushruti Singh
In a way, 2022 marked a return to normal, albeit a very different normal. Covid wave, covid variants and work from home were no longer common phrases in everyday speech. In the meantime, India inc and various stakeholders worked together to successfully navigate and address the pandemic’s obstacles.
At the same time, 2022 is to be remembered for anything but technology sector. Without technology, we couldn’t have survived the unprecedented scenario. But this year it will be called the year of tech employment, which was on a long trajectory at the start, has come to a screeching halt. Now we all are talking about, recession, inflation, layoffs and hiring freeze. But how some of the segments and sectors other than tech have fared this year, let’s have a look.
Healthcare landscape changed
The pandemic altered India’s healthcare system. The people, govt, commercial and public healthcare organisations all demonstrated a strong desire to work together to address the health crisis. The pandemic has taught us a lot, and we are already noticing a change in perspective.
According to Dr Rajeev Chitguppi, Head of Research & Innovations, ICPA Health Products three factors are re-shaping the healthcare industry. He says, precision (personalized) medicine, in contrast to the earlier “one-size-fits-all” approach, is helping to provide treatments customised to individuals based on the differences in people’s genes, environments, and lifestyles.
“Precision medicine approaches for cancer and hereditary diseases have expanded significantly. The therapeutic segment of the precision medicine market is predicted to grow at a 10 per cent annual growth rate through 2028,” Chitguppi said.
Next is Artificial Intelligence (AI), he said. “A recent report predicts that health systems and pharmacy enterprises will implement more AI in the coming years. The report recommends pharmacy leaders receive AI training and implement it in health systems,”
Also Read: Textile industry makes investments worth Rs 1,536 cr under PLI scheme
Similarly, Biosimilar boom is the next big thing for the healthcare industry. Chitguppi tells us that a biosimilar drug resembles and acts like an FDA‐approved biologic product. “In terms of safety and effectiveness, it will be very similar to, but not the same as, the reference product. With biosimilars becoming familiar, industry leaders anticipate a biosimilar boom in 2023, predicting that the market will surpass $100 billion by 2028,” he said.
On the other hand, diagnostics segment which always remained in the background is now front and center. Talking about it, Anand K, CEO, SRL diagnostics says that healthcare delivery is expected to shift from ‘’illness to wellness’’, from ‘’doctor first to diagnosis first’’ and from ‘’healthcare facilities to homes of patients’’. “The pandemic has catalysed changes and we are witnessing an accelerated digitalisation and consumerisation of the industry and this is a positive movement.
Consumers now have a heightened awareness of quality in laboratory testing and reports, demand at- home phlebotomy service and request reports be delivered to a communication channel of their choice. The Indian Diagnostic Industry led by private lab chains have risen to this demand and are offering best possible care compared to the global landscape. We are witnessing consolidation of the industry at a faster rate and this will continue to play in advantage of large chains like SRL,” he points out.
This year, SRL is focusing on new growth avenues. “We are working on co-marketing initiatives, clinical trial studies, contract validation for kit manufacturers and tech providers, co-development of new biomarkers,” said Anand K.
Relocation sector remains positive
Relocation industry is one of many sectors that has stayed strong even after all the challenges posed by the pandemic. Approaching forth, stakeholders feel, it is only meant to scale further and contribute to the national development in a significant way.
Aakanksha Bhargava, CEO, PM Relocations tells us that company gained 100 cr mark. “We aim to make the company achieve double of what we intended the last year- the 200 CR mark,” she says.
Also Read: India’s solar energy capacity rose 91% in three years
Talking about trends for 2023, she points out several major trends to watch out concerning the relocation sector as well, which are as follows.
- With lesser population, better growth opportunities and better access to everyday needs, Tier 2 cities are now attracting more and more people. There has already been a major growth rate in cities like Indore, Bhopal & Pune. More relocation to these cities is expected.
- Digitization is becoming the talk of the town post the launch of National Logistics Policy, Gatishakti Yojana. Moving companies are likely to adopt technical facilities like apps enabling GPS tracking of goods & various software that regulate easier functioning at the backend. This will be a unique way of helping with sustainability.
- Things are expected to get back on track as the airport and port backlogs are to be cleared out by the next year’s beginning. The government is also making efforts and taking measures to fasten the whole process.
- By adopting digitization, ways to improve & regulate transition, the industry are now trying their best to achieve a shock-proof move management system. While there are already numerous government schemes being introduced to meet the same criteria, 2023 will have much more to look out for that reshapes the industry and its back-end functioning in a significant way.
Consumer electronics is on pace
The consumer electronics sector is showing no indications of slowing down in terms of sales or technological advancement. 2022 has also seen nothing but growth for the market. Especially with the health factor gaining more prominence and relevance, health tracking gadgets have taken the centre stage in innovation. Customer demand for smartwatches, with extensive health monitoring features has increased, leading to brands developing gadgets at affordable costs.
A home-grown brand Lyne launched in early 2022 is witnessing good growth. They introduced, Lancer-1, a smartwatch with a complete health assessment system.
Commenting on the overview of the market Meet Vij , Co-founder, Lyne says, “Other accessories such as headphones, earpods, and TWS showed a 62 per cent QoQ growth in 2022, with an increased penetration, due to low prices, convenience of use, and suitable gifting options. By 2023, it is anticipated that 490 million wearable devices will be shipped worldwide,”
Consumer expectations are driving regular feature updates in basic devices. To obtain a competitive advantage, innovators are aiming to offer fast charge across each of their charging ports. As per the market data, the consumer electronics and accessories industry is anticipated to expand in the year 2023 as well.
“The market for wireless headphones and earphones was worth Rs 11.47 billion in 2016 and throughout the estimated period, it is anticipated to increase at a CAGR of 12.1 per cent. Growth is undoubtedly impacted by manufacturing and importation expenses, but since overall demand also has an impact on these costs, the market will undoubtedly keep growing,” says Vij.
BFSI segment trends
The economy remains fragile over the last year and seems it will be the same in 2023 as well. With this, experts are observing a great number of changes in the new trends that are coming up in various segments of the BFSI industry.
One of the trends is MSME finance has been driven by fintech startups, says Ajeet Kumar Singh, MD, CEO & Chairman, SAVE Solutions.
“It is important to provide financial aid and motivate the MSME sector owing they contribute 28.77 per cent of the GDP, 40 per cent contribution towards exports, and close to 45 per cent in industrial inputs, which has been eased by the Fintech Industry. Fintech has revolutionise financial transactions through tech. AI has enabled virtual financial advisors that help MSMEs on a varied subjects,” he elaborates.
In the same vein the Microfinance industry is also experiencing a shift towards digitisation, where for various components of the Loan collection processes, the lenders have started to collaborate with Fintech companies and payment gateway providers to increase productivity, efficacy and transparency.
Also Read: Bilateral trade between India-GCC up 40% in 2022-23
Talking about the housing segment, Singh points out that HFCs providing affordable housing finance are witnessing a surge in demand for home loans post-pandemic era as people have realised why owning a house is important. “Borrowers in LIG and lower MIG segment are now recovering from the hardship they faced during the Covid pandemic and this has resulted in better collection efficiency and asset quality of HFCs. As per one of the ICRA reports, affordable HFCs are expected to see a growth of 17-20 per cent in FY ’23,” he said.
Mixed impact on construction & building management sector
Despite near-term challenges, the growth story of construction sector in India remains intact. According to ResearchAndMarkets report, the growth momentum is expected recording a CAGR of 10.8 per cent during 2022-2026. The construction output in the country is expected to reach Rs 61,721.3 billion by 2026.
This is on the back of increased govt spending on infrastructure projects. Notably, the govt is well on its course to building more national highways and rail lines during the 2015 to 2025 period.
Paul Wallett, Regional Director for Trimble Middle-East and India region viewed 2022 as impactful. “In 2022, the real estate and construction industry found a powerful ally in technology as it battled inflation with rising fuel and raw materials costs. Companies that used digital tools effectively were able to deliver profitable projects, while a majority of others had to contend with higher costs and incomplete projects.”
Stakeholders from the building management segment feels since pandemic the segment has witnessed a significant spurt in demand. Gaurav Burman- VP & APAC President, 75F, India says,
“There is demand for HVAC systems and advanced IoT-embedded solutions. Throughout the year 2022, the industry has been amidst a technological revolution to keep up with the evolving needs of homebuyers and builders. Rapid technological advancement coupled with the adoption of IoT technologies have resulted in the creation of smarter and more efficient HVAC systems, which are enabling buildings with intelligent solutions. Building owners and facility managers are now striving towards newer energy efficiency standards as they get empowered by actionable intelligence,” he said.
Meanwhile, the increase in pollution and poor indoor air quality has prompted India to prioritise building management solutions for ensuring an optimal working environment. With the government emphasising on energy efficiency, green buildings, and climate control measures through its Energy Conservation (Amendment) Bill, sustainable business practices have started gaining momentum. “Businesses are prioritising converting to green buildings to be in line with the Indian government’s goal of achieving a net-zero emission status by the year 2070,” he said.
Consumerism surge in alcobev sector
People’s drinking habits have shifted significantly during the COVID-19 pandemic with consumption migrating from pubs and restaurants to their homes. On the other hand, customers are actively preferring quality over quantity when it comes to making an experience out of their alcohol consumption, and this trend has accelerated during the lockdown.
Also Read: EV sales surge in India, from 48,179 in 2020-21 to 4,42,901 in 2022-23
Consumers are increasingly willing to pay extra for high-quality alcoholic beverages. This creates opportunities for manufacturers to offer premium price points. Also, flavored vodka & gin are hot topics in the market. At the same time, when market was witnessing demand sluggishness, alcobev companies saw no dip.
One of the alcobev companies, Alcostar Group of Companies recorded a turnover of Rs 1000 cr during the FY 2021-22 and we aim to double the turnover by FY 23. “We have launched our 4 premium products this year—Sherry Platinum, Kiev Pure Grain Vodka, Kiev Green Apple Vodka, Old Chief Rum. In terms of future plans, we are planning to import flavored Vodka from various countries such as France, the Netherlands, and Poland, Tequila, Gins from England, Scotland and Philippines,” said Arundeep Singla, Chairman and MD, Alcostar Group of Companies.
Traditional marketing takes back seat
With the inception of digital marketing and its noted popularity since the pandemic in 2019, traditional marketing has taken the back seat. Companies these days spend more time and money on collaborating with influencers than increasing the number of people in their marketing team.
A study says 7 out of 10 customers trust the opinion of influencers as much as of a close friend. If stats are to be believed, 72 per cent of social media users say they have built trust in the influencers they follow; 66 per cent claim that their purchasing decisions are driven by influencers; and, 64 per cent say influencers help them discover new brands.
With 2023 around the corner, influencer marketing is set to evolve with new trends that pop up quickly. The key to staying ahead in the game is to be an early adopter of the trends and find new ways to communicate the brand with its audience, says Ritesh Ujjwal, founder, Kofluence, an influencer marketing platform.
“On summing up this year’s influencer marketing trend, we are looking at over three-quarters of brand marketers invested in influencer marketing efforts in 2022. Brands were drawn to influencers’ relative affordability per generated impression and cost per acquisition as compared to traditional media channels. However unpredictable marketing trends have been in the past years, it’s safe to say that influencer marketing will continue to be at the forefront of brand marketing conversations in 2023,” he says.
According to him, influencer marketing is by far the most effective both from cost and ROI points of view. This space is gaining outstanding fame, and so are the people who are creating it. Also, companies these days believe in collaborating on long-term projects with influencers, allowing them stable revenue. Hence, this has become a successful walk of life for people who are up for perpetual content creation, upgradation and growth in the digital marketing sector.
