Excerpts:

Some experts say that Nepal is still an untapped and unexplored market. Do you agree?

Nepal was first country in the region to be exposed to international brands. Some 30 years back, India did not have the access and exposure to the brands that were here in Nepal. Nepali consumers have always been exposed to these kinds of international brands for last 30-40 years. So, when local brands try to enter this market they find it a challenge because consumers benchmark it with international brands that they have already used. It could be in any category, but the consumers give it a fair trial and if it does not meet their expectations then they have no hesitation in rejecting it. The Nepali consumers are very discerning indeed!

Can you please tell us some major differences in the consumers’ behavior in the past and present?

Today the consumers have a different kind of exposure because of the reach and penetration of the international media. This has had very large impact to the consumers’ psyche. When you look at the way people dress, we see they are following the world’s leading trends. Nepali consumers’ tastes and trends have evolved over the last couple of decades. Look at the way they have embraced new technology, new gadgets and even smart phones. Look at two wheeler sector, earlier people went for something functional but not anymore. Now they want a higher-end bike to go with their perceived self-image. People have a much higher level of aspiration now, and want to show that through their material possession. 

What are the practices of the companies regarding study of consumers’ buying behavior in Nepal?

Client and organizations in Nepal are talking about research. Although, they might not always employ a professional research agency, they might want to do research in-house, through their own team, which is not the right way to do it, but it still goes some way. Earlier there a few companies who actually believed in market and consumer research but that’s changed. We now see that clients and companies are talking about research, which is a very positive sign.

How is the branding practice in Nepal? How important is branding from your perspective?

Branding has caught on over the last two decades. Everything now seems to be branded. I am just not talking about the consumer goods, but commodities which at one time were sold loosely are now branded. Companies have now come to realize and appreciate that when you build your own brand you are able to command a premium rate.

What is the media consumption habit of Nepali consumers right now?

If you see the ownership in the durables likes colour television (63% in 2012 Vs 13% in 2003), radio, refrigerator and mobile phones have drastically increased. Ten years back the national media was primarily radio based but today there are more people watching television than listening to the radio. Obviously radio has not been able to catch the imagination the listeners, while television has caught on despite having more than 350 FM radio channels in Nepal. The print too have taken its toll, readership has gone down over the last ten years even though literacy has gone up. The reason could be the high cover price of newspapers. The usage of the internet has gone up drastically from 2% in 2002 to more than 25% in 2012. 

How do you envisage the importance of advertisement to catch the emotional side of consumers?

If you are unable to connect with your customers on an emotional level, you will not be able to engage with them meaningfully. Consumers today have many interests and they are not waiting to see your advertisements! Unless you are able to make an emotional connection with your customers; make your advertisements distinctive, emotional, entertaining and engaging otherwise you cannot hope to catch their attention.

What are the contributing factors in the quality of advertisements? What are the reasons behind low quality of advertisement in Nepal? 

Over the last few years the quality of advertisements has not matched the expectation of the Nepali consumers.  There are many reasons for that, no one wants to take a ‘risk’ and everyone wants to ‘play safe’. Companies feel that if they come up with a “creative” advertisement it might go over the head of their audience. There is very little the advertising agencies can do in that kind of a scenario. This is also compounded by the severe shortage of creative people in the advertising sector. Moreover, top quality advertising production – especially films cost huge amounts of money. The market here is very small compared to other countries in the region.