Edelweiss looks for a role model

With Nehwal as its new face, the financial services company hopes to strike a chord with the young and financially astute

Branding, for service providers, is always a complicated affair; even more so for financial services companies. Trust, confidence, safety - how does one communicate these? Such was the dilemma at Edelweiss Group for the past several months, as it chalked out its expansion plans and debated about branding strategies.

Enter Saina Nehwal. At the outset there seems to be little in common between the badminton star and the financial group named after a white flower found in the Alps and an iconic song from the film Sound of Music. So what is the connection?

'Edelweiss today is expanding its presence pan India with the insurance, housing finance and credit businesses. Saina (Nehwal) is an inspirational icon, which is one of the compelling reasons to associate with her,' said Rashesh Shah, chairman and chief executive officer, Edelweiss Group.

The company is tightlipped about the size of the deal, although industry buzz is that, IOS Sports & Entertainment, the sports management group that Nehwal is associated with, has negotiated a multi-crore contract.

Edelweiss believes that the association with Saina is perfectly timed. The company has clocked profit after tax at compounded annual growth rate of about 37 per cent for the past three years and 30 per cent for the past 10 years. This is the time to establish itself as a pan-Indian brand the group feels.

What does the deal entail? For one, the Edelweiss brand logo will appear on Saina's jersey across domestic and international tournaments. And Saina will be part of the multimedia campaign that the company plans to launch. The team behind the branding deal sees a close association between the badminton star and the 18-year old Edelweiss Group, which has grown from a mere three people with Rs 1 crore capital to about 6,000 people over 200 offices all over India, managing about Rs 27,000 crore of assets.

Shah said, 'She has risen to become an iconic figure with a huge fan-following, something which is hard in India unless he/she is a cricketer.' This is the hallmark of a dedicated and committed sportsperson, just the qualities that Edelweiss would like to associate with.

Brand consultant Harish Bijoor said, 'Whenever you pick a sporting star, it is for excellence, precision and finesse. Saina fits into all these qualities.' Besides, sports stars and financial companies have a long standing relationship. The best example is cricketer Sachin Tendulkar endorsing Aviva Life Insurance or Yuvaraj Singh who was retained by Birla Sun Life for their cancer insurance products. (see table)

Saina is also seen as the face of a young and confident India. Edelweiss, given that it has grown at a steady clip the past few years, places itself in the same league. Both have a proven track record and are looking to rise to greater heights. 'We look to continue growing at 20-30 per cent in the next eight to 10 years and focus on customer experience. We want to build our retail financial services too,' said Shah. Edelweiss looks to double the number of branches to 400 in two-three years. It pocketed Rs 3,912 crore in revenue in 2014-15 and is looking to carve a separate identity for itself in an industry which has players such as HDFC, L&T Finance, Religare, and Franklin Templeton.

Edelweiss is also targeting the young Indian - it is estimated that by 2020, India will have about 65 per cent of its population in the 21-35 years age bracket. 'In the next 10-20 years because the people who are born after 1990 will take centre stage, that is where a lot of demand for advice will start coming from,' Shah said. With Saina on board, Edelweiss expects to connect with this group and as it looks to invest more in brand building, it is also making 'strategic investments' in fintech (financial technology) startups. 'As a financial services company, there are a lot of opportunities in fintech companies. So we make sure we get involved in wherever possible as clients or advisor in such companies,' Shah said. With its technological deals signed up and, now, an iconic ambassador, the company is hoping it has its future all tied up.