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Coca-Cola Christmas ad controversy: netizens react to ‘Real Magic AI’ creation

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Ashutosh Dubey
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Coca-Cola Christmas ad controversy: netizens react to ‘Real Magic AI’ creation

Coca-Cola‘s new Christmas commercial, generated by artificial intelligence, has sparked controversy on social media. The ad recreates the iconic “Holidays are Coming” theme, but many viewers are unhappy with the changes.

Coca-Cola ad lacks Santa Claus

The advertisement lacks Santa Claus, a traditional key figure in Coca-Cola’s festive ads. His brief appearance, only showing his hands, has frustrated fans. Some claim the AI-generated ad has “killed off” the beloved character.

Continue Exploring: ED launches probe against Amazon and Flipkart following seller investigations

“Coca-Cola has always been associated with the magic of Christmas. You killed this magic…,” a YouTube commenter said. Another user wrote, “Real magic is firing your advertising team for Christmas and using AI-generated slop.”

On social media platform X, users expressed similar disappointment. “The world is so over if the Christmas Coca-Cola advert is made with AI,” one user said. Another posted, “Just saw an AI-generated Coca Cola commercial on TV… genuinely how are we letting this happen?”

Continue Exploring: Zomato introduces ‘District’ App, enabling customers to book tables, tickets, and events

AI-generated ad shows Coca-Cola’s innovation – Company’s spokesman

Despite the backlash, a Coca-Cola spokesman defended the move, telling AdWeek, “Coca-Cola’s exciting venture into AI-generated storytelling demonstrates Coca-Cola’s commitment to embracing innovation, leveraging our collaborations with top creative and technology partners, while staying true to its core values: spreading happiness and creating real magic!”

The ad’s disclaimer, “created by Real Magic AI,” highlights the company’s experimentation with new technology. However, fans seem to value tradition over innovation.

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Amazon India relocates to Bengaluru as part of cost-cutting strategy

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Ashutosh Dubey
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Amazon India relocates to Bengaluru as part of cost-cutting strategy

Amazon India is relocating its Bengaluru office to a new location near Kempegowda International Airport as part of its cost-cutting strategy. 

The company’s current office at World Trade Centre, its first Indian corporate office, occupies 18 floors and houses around 5,300 people.

Continue Exploring: Colgate faces temporary slowdown in urban growth; shifts focus to per capita consumption – Colgate MD

Amazon to shift in Bengaluru by 2026

The new office space at Sattva is a 15-minute drive from the airport and significantly reduces costs, with rent less than a third of the current rate. The relocation is expected to be completed by April 2026.

This move follows a trend of global companies and Indian startups reducing expenses. Many have implemented workforce reductions and office closures over the past two years. Recently, Indian startups Kuku FM, Beepkart, and 1% Club laid off employees, while Beepkart also halved its store count.

Continue Exploring: Ranveer Singh acquires 50% of Kishore Biyani’s foods startup Elite Mindset

Further, Freshworks, a Nasdaq-listed SaaS company, announced a 13% job cut affecting 660 employees worldwide as part of its restructuring plan. The company aims to streamline operations and increase efficiency.

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Zomato introduces ‘District’ App, enabling customers to book tables, tickets, and events

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Ashutosh Dubey
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Zomato introduces 'District' App, Enabling Customers to Book Tables, Tickets, and Events

Food delivery platform, Zomato has rolled out its ‘District’ app on iOS and Android platforms, three months after announcing its launch. The app enables customers to discover and reserve tables at restaurants, book movie tickets, sports events, and live performances.

District to be 3rd largest B2C business – CEO Deepinder Goyal

According to Zomato CEO Deepinder Goyal, the company aims to build its going-out segment as its third-largest B2C business. “Our dine-out business is operating at a run-rate of over $500 million annualised gross order value,” Goyal said.

Continue Exploring: Zomato introduces ‘Book Now, Sell Anytime’, allows users to resell event tickets

Notably, the ‘District’ app is part of Zomato’s strategy to stay ahead of competitors through innovative features. Recently, the company launched “Book Now, Sell Anytime,” allowing users to buy event tickets in advance and re-sell them on the app. Additionally, Zomato introduced “Food Rescue,” enabling users to purchase cancelled food orders from nearby areas to reduce food wastage.

The company previously announced that it will move all its going-out businesses from Zomato’s main app, the Insider app, and Paytm‘s app to District. Ticketing services will remain on Paytm’s app until August next year.

Continue Exploring: Fragrance sales defy economic downturn; grow 12% in 2024, outpacing FMCG

Zomato to raise INR 8,500 Cr via QIP

Meanwhile, the company plans to raise up to INR 8,500 crore through a qualified institutional placement.

Further, the food tech giant’s financial performance has been impressive, with a 389% surge in net profit to INR 176 Cr in Q2 FY25, up from INR 36 Cr in the year-ago period. Operating revenue jumped 68.5% to INR 4,799 Cr in Q2 FY25, compared to INR 2,848 Cr in Q2 FY24.

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ED launches probe against Amazon and Flipkart following seller investigations

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Ashutosh Dubey
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ED launches probe against Amazon and Flipkart following seller investigations

The Enforcement Directorate (ED) has shifted its focus to investigating Amazon and Flipkart, after sellers, for allegedly violating foreign direct investment norms through their arrangements with vendors.

ED investigates violations under FEMA

According to ET, the Enforcement Directorate (ED) is investigating potential violations under the Foreign Exchange Management Act (FEMA). The agency, which was previously looking into the sellers, is now checking if the e-commerce companies had control over their vendors, even though they are supposed to act only as platforms.

Continue Exploring: Colgate faces temporary slowdown in urban growth; shifts focus to per capita consumption – Colgate MD

Previously in November, the Enforcement Directorate (ED) raided the offices of some sellers linked with Amazon and Flipkart. “The sellers covered during the searches were summoned and have been questioned to explain certain transactions and arrangements. Documents are being studied thoroughly,” a source mentioned to ET.

ED summons executive from Amazon & Flipkart

After searching sellers’ offices in Delhi NCR, Mumbai, Bengaluru, Gurugram, and Hyderabad, the Enforcement Directorate (ED) may summon executives from Amazon and Flipkart.

“The main focus is to ascertain whether Amazon and Flipkart operated through a preferred set of sellers, which were invariably controlled by them but disguised as independent vendors, thus violating FDI norms,” said a source.

Continue Exploring: Ranveer Singh acquires 50% of Kishore Biyani’s foods startup Elite Mindset

This happens as Amazon and Flipkart face legal issues. Recently, the Competition Commission of India (CCI) found them guilty of breaking competition laws by favouring certain sellers on their platforms.

Further, the reports stated that Amazon’s preferred sellers got an “advantage in the online listing,” making their products more noticeable to customers during searches.

For Flipkart, the Commission noted that preferred sellers received services like marketing and delivery at a very low cost. Now, the CCI is considering taking the case to the Supreme Court.

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Colgate faces temporary slowdown in urban growth; shifts focus to per capita consumption – Colgate MD

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Ashutosh Dubey
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Colgate faces temporary slowdown in urban growth; shifts focus to per capita consumption - Colgate MD

Colgate-Palmolive India‘s managing director, Prabha Narasimhan, attributes the slowdown in the FMCG sector to consumers delaying purchases or extending product usage.

“Consumers tend to titrate or delay their usage of things…when they feel the pressure,” she said, while talking to ET.

Colgate-Palmolive registers 10% growth in Q2

Despite this, Colgate-Palmolive India outpaced the market with 10% growth in the quarter ended September. The company dominates the oral care segment with a 50% market share.

Continue Exploring: Fragrance sales defy economic downturn; grow 12% in 2024, outpacing FMCG

Narasimhan noted, “Oral care consumption is very low in India…even markets like the Philippines consume 1.8 times and Brazil 3.1 times more than India.” Colgate aims to increase consumption through awareness and innovation.

Meanwhile, the company has introduced an AI-powered oral health screening initiative and partnered with the Indian Dental Association to provide free check-ups. “We’re marrying the idea of 800 million-plus smartphones with technology to give people access to dental health reports,” Narasimhan explained.

Colgate expenses jumps 18%, launches new product

Further, Colgate has also launched new products, including Colgate Visible White Purple, and invested in advertising, resulting in an 18% jump in spends. “Our focus is on building new segments, like whitening and gum health, and adjuncts to toothpaste,” Narasimhan said.

Continue Exploring: Converse announces Harsh Varrdhan Kapoor, Khushi Kapoor as new brand ambassador

Despite temporary urban growth slowdown, Narasimhan remains optimistic. “We have so much headroom to go in terms of moving per capita consumption…our focus really needs to be on that.”

NielsenIQ reports urban demand grew 2.8% year-on-year, while rural demand grew 6%. The FMCG sector grew 5.7% by value and 4.1% by volume.

Narasimhan further stressed, “We’re back to driving consumption…with technology.” Colgate’s global technology hub in India enables innovation for key markets.

“Over the years, the company has focused on getting universal penetration…now we’re back to driving consumption,” Narasimhan said. With its science-based approach, Colgate aims to leverage clinically proven technology to improve oral health in India.

As Narasimhan concluded, “As a science-based company, we spend a lot on oral care…we want to bring effective technology into the country.”

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Ranveer Singh acquires 50% of Kishore Biyani’s foods startup Elite Mindset

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Ashutosh Dubey
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Ranveer Singh acquires 50% of Kishore Biyani’s foods startup Elite Mindset

Bollywood actor Ranveer Singh has acquired a 50% stake in Elite Mindset, a packaged foods startup backed by Kishore Biyani. Nikunj Biyani, Singh’s nephew, and Think9 Consumer Technologies own the remaining stake.

Elite Mindset to expand into biscuits, protein powder

“We see an opportunity to build a brand in the better-for-you packaged foods space with accessible and affordable protein-based products,” Nikunj Biyani said, while talking to ET. Elite Mindset will focus on protein bars under the label SuperYou, expanding into biscuits, protein powders, and breakfast cereals.

Continue Exploring: Fragrance sales defy economic downturn; grow 12% in 2024, outpacing FMCG

The venture has received an initial seed investment of INR 50 crore. Ranveer Singh stated, “I wanted to enable protein consumption in simple and affordable ways for Indian consumers.” This investment adds to Singh’s portfolio, including Sugar Cosmetics, BoAt, and Epigamia.

Healthy snacking market grows 1.2X faster

India’s healthy snacking market is growing rapidly, with “smart snacking” increasing 1.2 times faster than traditional snacks, according to NielsenIQ. Sonika Gupta, executive director, said, “One in five snacks now has a health connotation in India; health-conscious consumption growth is fueled by innovations in small, affordable, and nutrient-rich products.”

Meanwhile, the trend of celebrities investing in companies is gaining momentum. Recent examples include Alia Bhatt in SuperBottoms, Sachin Tendulkar in Spinny, and MS Dhoni in Shaka Harry.

Continue Exploring: DCGI to meet cosmetic brands’ representatives over regulatory issues

Some investments have yielded significant returns. Ayushmann Khurrana’s angel investment in The Man Company saw a 400% return after Emami acquired full ownership.

Ranveer Singh’s investment in Elite Mindset reflects the growing demand for healthy and affordable food options in India. As Nikunj Biyani noted, “We’re excited to build a brand that makes a difference in people’s lives.”

With Think9‘s existing portfolio including Sorrentina, Smartsters, Kingdom of White, Beauty in Everything, and The Good Bug, Elite Mindset is poised for growth in the packaged foods market.

The development highlights the increasing focus on health-conscious consumption and the role of celebrity endorsements in shaping consumer preferences. As Sonika Gupta emphasised, “63% of consumers surveyed said they would opt for healthy snacking, while 50% read ingredient labels to understand nutritional values.”

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Fragrance sales defy economic downturn; grow 12% in 2024, outpacing FMCG

By
Ashutosh Dubey
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Fragrance sales defy economic downturn; grow 12% in 2024, outpacing FMCG

Despite a sluggish economy, the fragrance market in India has shown remarkable resilience, with major players like Godrej Consumer Products, Emami, ITC, and Shoppers Stop reporting robust sales growth.

Fragrance sales crosses personal care segment’s 6.2% growth

According to NielsenIQ data, the fragrance segment grew 12% year-on-year from January to September 2024, outpacing the overall personal care segment’s 6.2% growth and the FMCG industry’s 5.7% expansion, ET reported.

Continue Exploring: DCGI to meet cosmetic brands’ representatives over regulatory issues

“Fragrance still has some gas left in the tanks since it has always been underdeveloped,” said Santosh Desai, a social commentator and brand expert. “It is a late bloomer, catching up with the rest of the beauty portfolio.”

Roll-on deodorants drove this growth, with a 26% increase in sales. “A rapid expansion in distribution and increased interest in personal grooming led to the surge in sales,” explained Roosevelt Dsouza, head of commercial, India, at NielsenIQ.

Godrej reported growth in double-digit, Shoppers Stop jumps 17%

Godrej Consumer Products managing director Sudhir Sitapati reported “doubledigit” volume growth in fragrances, while Shoppers Stop saw a 17% increase in fragrance sales, its highest quarterly turnover yet.

Continue Exploring: Morgan Stanley ups Zomato’s target price to INR 355, sees 31.7% upside potential

Further, Emami vice-chairman Mohan Goenka said the company has launched a portfolio of fragrance products, including eau de toilette perfumes for urban consumers.

Reportedly, the Indian fragrance industry, valued at ₹4,771 crore, has significant room for growth due to low penetration rates. “There is a lot of headroom for growth,” Desai noted.

Meanwhile, Reliance Retail‘s new luxury beauty store, Tira, features a ‘scent room’ offering international fragrances and limited-edition collections.

As Sitapati observed, “Deodorants are doing very well in organised trade.” With expanding distribution networks and innovative products, the fragrance market is poised for continued growth.

“This robust growth in the category is due to the hitherto low penetration rates,” Desai concluded. “Fragrance is catching up with the rest of the beauty portfolio, whose sales have gone up in the last couple of years.”

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DCGI to meet cosmetic brands’ representatives over regulatory issues

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Ashutosh Dubey
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DCGI to meet cosmetic brands’ representatives over regulatory issues

India’s drug regulator, the Drugs Controller General of India (DCGI), will meet with cosmetics industry representatives on Tuesday, November 19 to discuss regulatory issues.

DCGI to address concerns surrounding Schedule M

The meeting aims to address concerns surrounding the government’s newly notified Schedule M.

Continue Exploring: Morgan Stanley ups Zomato’s target price to INR 355, sees 31.7% upside potential

“The industry has been facing various issues,” said an industry expert, according to ET. “Earlier it had raised concerns regarding the government’s newly notified schedule M that proposed blanket ban on manufacture of any other article or product apart from drugs in the units licensed for drug manufacture. This requirement would mean setting up a new plant exclusively for cosmetic manufacturing.”

 

Licence before Dec 11, 2001 to manufacture

Further, he mentioned that units licensed before December 11, 2001, were allowed to manufacture related items like nutraceuticals and ayurvedic medicines in the same plant, as an exception to the rule that no manufacturing activity should take place there.

Continue Exploring: Kolkata’s Gariahat Hawkers opt for Digital amid rise of e-commerce to boost sales

“We have asked for permitting the manufacture of cosmetics in the area dedicated for manufacture of topical products,” the expert added. “We will discuss this issue during the meeting.”

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Morgan Stanley ups Zomato’s target price to INR 355, sees 31.7% upside potential

By
Ashutosh Dubey
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Morgan Stanley ups Zomato's target price to INR 355, sees 31.7% upside potential

Global brokerage firm Morgan Stanley has increased its target price for Zomato to INR 355 from INR 278, citing the company’s potential to benefit from the growing quick commerce (QC) market in India. 

This represents a 31.7% upside potential from Thursday’s closing price.

Continue Exploring: Zomato to raise INR 8,500 Cr via QIP in December

Large profit pool by 2030 keep us overweight on Zomato – Morgan Stanley

“Rising share of quick commerce in India’s retail market, strong execution in food delivery/quick commerce, deep balance sheet, and large profit pool by 2030 keep us overweight on Zomato,” said Morgan Stanley in its report, according to ET Retail.

Morgan Stanley’s overweight rating is based on food tech giant’s favourable industry structure, market leadership, and superior unit economics in food delivery. The firm expects Zomato’s QC business, led by Blinkit, to outperform despite intense competition.

“We build in adjusted EBITDA breakeven for the next two to four quarters, implying substantial investments in aggressive expansion,” said Gaurav Rateria, Equity Analyst at Morgan Stanley. “We assume margins of 2.2% by F2027 and 5.1% by F2031, implying an annual profit pool of close to $1 billion for this business.”

Continue Exploring: Blinkit’s growth is not affecting kirana stores: Zomato CEO Deepinder Goyal

India’s q-commerce to reach $42 Bn in 20230

Further, Morgan Stanley estimates the Indian QC market to be worth $42 billion by 2030 in a base case scenario and $55 billion in a bull case. The firm believes Zomato will maintain its 40% market share despite rising competition.

To be noted that Zomato’s ability to solve for convenience, pricing, and selection will drive growth. Key catalysts for the stock include consistent top-line beats, adjusted EBITDA breakeven, and better monetization in food delivery.

However, risks include aggressive competition in QC, unit economics deterioration, regulatory risks around gig workers’ social security, and slowing top-line growth due to macroeconomic slowdown in urban consumption.

As Rateria stated, “Zomato’s current business model solves for convenience but is evolving rapidly to solve for both pricing and selection.”

Zomato’s shares closed 4.3% higher at Rs 269.60 on the BSE this Thursday.

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Kolkata’s Gariahat Hawkers opt for Digital amid rise of e-commerce to boost sales

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Ashutosh Dubey
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Kolkata's Gariahat Hawkers opt for Digital amid rise of e-commerce to boost sales

Gariahat hawkers in Kolkata are embracing the online marketplace to regain lost business due to the rise of e-commerce. The Gariahat Indira Hawkers’ Union, representing around 1,500 of the 2,000 hawkers, has hired a professional agency to create YouTube videos showcasing products from 100 stalls.

Before 2020, daily turnover was INR 7,500 – Debraj Ghosh 

“Before 2020, the average daily turnover of a stall was around INR 7,500. It’s now INR 2,500,” said Debraj Ghosh, the union’s general secretary. “This is mainly because many who moved to online shopping during the pandemic continue to shop online.” Ghosh emphasised that going online is crucial for survival.

Continue Exploring: Asia-Pacific region tackles food waste crisis with sustainability initiatives – Report

The initiative aims to reach potential customers through YouTube videos, allowing interested buyers to place orders via telephone and receive goods via courier. Seven videos will be released in December, covering various product categories, including apparel, home goods, and accessories. Each video will feature around a dozen stalls, including product details and contact numbers.

“We realised that unless we go to the customers as well, it would be difficult to survive,” Ghosh added. The union hopes to eventually cover all hawkers. Ajay De, a stall owner, welcomed the initiative, saying, “If we manage to sell our goods online, we can soon reclaim lost business.”

Continue Exploring: Rise of quick commerce is challenge to retailers, will become political issue – Uday Kotak

Quick commerce market to reach $40 Bn by 2030

Meanwhile, quick commerce companies are surpassing traditional retailers, with 46% of consumers reducing purchases from Kirana shops. The quick commerce market is expected to reach $40 billion by 2030, up from $6.1 billion in 2024, reveals a recent report by Datum Intelligence.

“Nearly half (46%) of respondents report reduced spending at Kirana shops, indicating a shift in customer behaviour towards quick commerce platforms,” the report notes. Top quick commerce platforms in India include Blinkit, Zepto, Swiggy Instamart, and Flipkart Minutes.

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