"We're not bothered whether print is big in India; readership is": Parag Gupta, Amazon Kindle

A look at Amazon Kindle's communication and marketing strategy in the India market.

Amazon, the American e-commerce giant, which is today a marketplace for everything - as the logo also reflects - began as an online book store in 1994-95. Books, once again proved the proverbial best friend when they became the vehicle for the company's entry into India. In 2012, almost a year before it came up with the India website, Amazon launched the India e-book store and e-reader Kindle (in partnership with offline retail chain Croma), simultaneously opening Kindle Direct Publishing for Indie authors.

And today, India, says Parag Gupta, head of product management and marketing, Kindle India, "has become one of the growth markets". This is evidenced by the recent launch of the high-end reader - Kindle Oasis (Rs 23,999), which along with Kindle Voyage (Rs 16,499), Kindle Paperwhite (Rs 10,999), and Kindle (Rs 5,999), completes the line-up in India.

Another testimony to Gupta's assertion is the brand's effort to go from niche to mass by associating itself with an FMCG product, Indo Nissin Foods' Top Ramen Noodles, for a promotional offer which is currently being advertised on television.

Kindle has been fairly active on the advertising front ever since it rolled out its first campaign accompanying the launch of the Paperwhite in India in 2014. Kindle Paperwhite's claim to fame is the no-glare feature. Unlike most tablets and smartphones, the device reads like paper, even in sunlight. This is precisely how the brand had marketed the product in the US.

However, in India, the brand's agency Leo Burnett was tasked with bringing about a behavioural change by making the device cool and human in nature. While the ad did subtly highlight the Paperwhite's various features, the triggers were more or less emotional.

Kindle's next campaign (2015) #WeAreTheReaders also played along similar lines. The ad was executed as an inspiring tribute to readers by capturing their world, of which Kindle was an integral part, and the pride of reading. The aim, in both cases, was to break the mental barriers associated with e-reading.

Although the avid Indian reader had the power to spend, realising that it will take more than just emotional cues to make him/her part with physical books, Kindle's communication soon changed track and began highlighting functional benefits clearly. This time, the brief given to the agency, now Ogilvy and Mather, was to communicate 'why' Kindle is a superior reading and dedicated device, and not just another addition to their (consumers') growing hoard of gadgets.

The TVCs, therefore, focussed on key features including built-in dictionary, storage space, paper-like reading experience, and adjustable font size, one at a time.

On the right track?

Commenting on the campaign strategy, Suman Srivastava, vice-chairman and chief strategy officer, strategic planning, FCB Ulka, says he loves the Kindle and also the campaigns. "In the battle between physical and e-books, it lands some strong punches in favour of the latter in a warm and non-aggressive manner. Taking the emotional route works when you don't have anything significant to say about the product, but here, there is a lot to talk about," he states.

Srivastava also points out that the ads position Kindle as a mainstream product by showing older people using it. "Technology products used only the youth are in danger of being seen as a fad or a 'not for me' product by non-believers," he cautions.

Pooja Rawat, associate vice-president, Lowe Lintas, adds, "There is quite a bit of scepticism about reading on a device if you are serious about reading. And, instead of trying to get more casual readers to read, Kindle seems to have taken up the hard task of converting a generation of proud book readers to read on the device. Kindle rightly started by instilling pride in readers who use Kindle through the manifesto-like communication, and now, they're answering the more logical questions."

But, what does Kindle make of the conflict?

According to FICCI (Federation of Indian Chambers of Commerce and Industry), India is still a very nascent e-book market. Globally, e-book sales are at 15-20 per cent of total book sales. In India, this number is still less than two per cent.

That said, about 70 per cent of Indian publishers are converting their books to e-books. As compared to print, which was at 20 per cent CAGR last year, the demand for digital content is supposed to be growing at about 100 per cent a year. In journal publishing, about 80 per cent of the content is currently consumed electronically.

Gupta, however, says that Kindle does not recognise any such conflict. "Our research shows that when a person reads, he/she reads more across formats. So, we just give our customers an additional option and tell them about its advantages. If they are comfortable, they will make the shift, otherwise we have a large collection of printed books on our online store for them," he asserts.

"We are not bothered whether print in India is big or not; readership is," adds Gupta.

Talking about the prospects for e-books in India, Vikrant Mathur, director-book, Nielsen, says, "India will have to develop its technological infrastructure in the coming years in order to increase the reach of e-books. Moreover, consumers here are more value-driven and may not invest in e-reading devices as it serves only one purpose, unlike smartphones or tablets which can do a lot more."

Echoing a similar sentiment, Rohit Kumar, co-chair, FICCI Publishing Committee, states, "While Indians do prefer reading online, they are hesitant to spend online. Until online payments for discretionary purchases take off, e-books will remain a very small percentage. However, with online wallets such as Paytm and Mobikwik gaining steam, it is a matter of time before they are used for other purchases. Once that happens, the trends will change rapidly."

Another roadblock for the growth of e-books in India could be low internet penetration. According to the Internet and Mobile Association of India (IAMAI), the extent of internet penetration in India was a mere 19.19 per cent until 2014. Also, the biggest challenge of consumer spending in India is the number of credit cards which is still less than 50 million (FICCI). Contrary to this, most emerging economies have about 10 times this number of credit card users.

Further, as India aspires to become a 100 per cent literate nation, print (academic and leisure) will continue to grow despite stiff competition from other mediums including digital. Recent figures released by the Audit Bureau of Circulation also show that print circulation of its member publications grew at 5.04 per cent CAGR over a period of last eight years.

Kindle India does recognise these challenges. Gupta tells us that in addition to getting more Indian authors/titles on the platform, there have been significant updates to enable the two-factor authentication (a regulatory requirement in India) on mobile, web and, also the device.

Talking about the TG, Gupta adds, "Our ads are mostly based on feedback from users on how Kindle affects their lives, and hence, they reflect our TG. Kindle has acceptability across age-groups. While travellers are a natural category, commuters (who have the facility to sync Kindle across devices), and children (who are attracted by features such as the built-in dictionary) are also growing segments."

Kumar somewhat agrees. "The growth will be triggered by those in the age group of 15-20 years. Right now, it is their parents who purchase e-books for them. Once they start earning, (in another four years perhaps), we are likely to see a big change. In 2020, these questions will have very different answers," he predicts.