Tuesday, November 18, 2008

Indian FMCG Sector Trends - 2008

In this post i have covered multiple trends happening in the Indian FMCG sector.

1. Focus on Health
Companies are widening their health food portfolio to cash in on the rich, urban, health conscious Indian. In recent we have seen flurry of products in this segment. Have a look of some of them:
1.1) Sugar free Chywanprash
1.2) Organic spices/ pulses
1.3) Multi grain pastas/ Biscuits
1.4) Processed foods particularly juices
1.5) Probiotic Ice Creams
1.6) Butter Lite (Nutralite)
1.7) Corn Flakes/ Oats
1.8) Lays (40% less saturated fats) – Snack Smart
1.9) Low Calorie Sweetners

2. Impact of Inflation: The expenditure of FMCG in the consumer's wallet is coming down year on year. This is leading to low sensitivity with price increases. ALmost a decade back people use to downtrade from expensive brands to value for money ones. But now the trend is changing. Consumer are not switching to cheaper substitutes. Rather companies have come with lower quantity SKUs and make consumers switch from higher to lower SKUs and not from premium to popular brands (like Dove to Lux International). Just to give you an example, Henkel instead of increasing the price of their Henkwl detergent from Rs. 46 to Rs. 50, they have launched a new SKU of 400gms for Rs. 40. During the time of inflation, people shift to sachets of their brands. Sales numbers of FMCG companies are quite robust.
FMCG spend now comprises a smaller share of consumer’s wallet

3. Micro Segmentation/ Niches: Its interesting and funny to see that companies are not leaving any opportunity to micro segment the market. I can forsee that we are here to see further segments in different categories. Here are some examples:
a) Junior Horlicks
b) Junior Chyawanprash
c) Pepsodent Barbie for Kids/ Colgate Strawberry
a) Women’s Horlicks
b) Male fairness cream
Specialized Household Cleaners
a) Kitchen Cleaner: Mr. Muscle
b) Power Cleaner (Rust): Easy Off Bang

4. Low value SKUs - Sachetization: You name the category it has a sachet !! We all know that it all started in 1980's with shampoos. I think Nano is an interesting example of an automobile sachet. Here is a small list of sachets:
4.1) Shampoos
4.2) Butter (Munna Pack)
4.3) Hair Oils (Navratan – Thanda Thanda Cool Cool)
4.4) Noodles (Chotu Maggi)
4.5) Ketchup (Pichko)
4.6) Toilet Cleaner (Harpic)

5. Jet Age Consumer Products: Becasue of changing lifestyles, busy jobs etc marketers are coming up with Jet Age consumer products.
Ready to Eat
a) Con Flakes/ Oats
b) Pastas
c) Biscuits
d) Noodles
e) Pizzas
f) Burgers
Ready to Drink
a) Energy Drinks
b) Non-Cola Drinks (Juices)
Ready to Cook
a) Cut Vegetables
b) Soups
c) Paranthas/ Rotis
d) Snacks

6. Mainstream Penetrated Growth Categories: The high penetrated categories like Hair Oils, Washing Detergents, Detergent Cakes, Soaps etc are expected to grow at a healthy rate of 10%, attributed to price increases (not much impact of inflation - explained in point 2) and low volume growth.

7. Under-penetrated Growth Categories: Barring few main mainstream categories as mentioned above, there are number of FMCG categories with low penetration and are expected to grow by 20% during 2008-2009. Have a look of that list:
7.1) Men’s grooming products
7.2) Skin care & Cosmetics
7.3) skin/fairness cream
7.4) Anti-aging solution
7.5) Shampoos
7.6) Toothpaste
7.7) Hair Colour
7.8) Deodorants
There lies a huge potential in these categories.

8. Low Per Capita Consumption: Currently we are nowhere near to other developing countries in terms of per capita consumption. Be it Laundary, Skin Care, Shampoos or deodarants. Marketers have put in efforts to increase the consumption frequency or quantum of consumption per occasion. Colgate started the "twice a day" campaign few years back. Recently we have Good Night coming up with Double power pack. Per Re1 increase in per capita consumption of a category will lead to growth of more than 100 crores (with a popular base of more than 1 Billion)

9) Evolved Product Forms: 20 years back consumers had limited choices to pick from. The days of Tortoise Mosquito repellent coils are gone. This is the age of aerosols with value added functionality. I have picked up some examples, were we have seen a change in the product forms. Here is the list:
Dish Wash: Powder to Bar to Liquid
Shaving: Creams to Foams/ Gels
Repellents: Coils to Aerosols/ Body Creams/ Gels
Air Freshners: Sprays to Electric
Toilet Cleaner: Acid to Harpic to In-Cistern



Blogger Yusuf said...

Very well written article. Thanks

January 04, 2009 5:32 PM  
Blogger Ajay said...


I have invented a Wonder Corporate
Gift @ Rs 1/- to attract more than
10 Crore people in no time.

Ideal for Free Schemes, Mass
Publicity & Brand Image Making,
A must for FMCGs, Corporate
Houses & Advertising Agencies.

Ajay Kumar Khaitan,
Mob: 09933115511

June 07, 2009 6:06 PM  
Blogger FRIEND said...


Mass Advertising Gift @ 50 Paise
to Attract 125 Crore People in just
1 Month.

Ideal for Free Gift Schemes to boost
up sales by 5-10 times. A must for
Advertising Agencies, FMCGs &
Corporate Houses.

A K Khaitan 9933115511
Inventor & World Record Holder

October 05, 2010 12:21 AM  
Blogger market watch said...

This Blog is really nice and helpful. sharemarketing live

November 28, 2010 6:42 PM  
Blogger LandMarvelProperties said...

Land Marvel construction
Developing and co-promoting real estate projects on joint venture basis properties

November 09, 2011 7:48 PM  
Blogger AJAY KUMAR KHAITAN said...


Mass Publicity Gift @ 50 Paise to attract 121 Crore Indians in just 1 month

A must for Ad Agencies, Corporate Houses & FMCGs. Ideal for Free Gift Schemes, Mass Publicity & Brand Image Making.

Sufficient Ad Space provided for Advertisers

MOQ: 5 Crore Pcs or (500 Buyers X 1 Lac Pcs)

A. K. KHAITAN, World Record Holder
M: +91-9933115511

March 16, 2012 3:42 AM  
Blogger ali raza said...

good one that i visited here today, thanks for sharing.
dentist toronto
Boca Raton Dentist
San Clemente Dentist

July 28, 2012 5:08 PM  
Blogger Ross Taylor said...

Excellent post on Indian FMCG sector. You have including and described in detail lot of information in your article like Focus on Health, Impact of Inflation, Micro Segmentation/ Niches, Jet Age Consumer Products, Under-penetrated Growth Categories, Low Per Capita Consumption etc. It really helped me to understand Indian FMCG Sector. Thanks for sharing such informative post.

FMCG Market Research Report

December 26, 2012 3:45 PM  
Blogger pc sharma said...

I have been looking around for this type of details. Will you publish some more in future? I’ll be thankful if you will.
Marketing Services

February 04, 2013 12:53 AM  
Blogger Gopi Karunakaran said...

Really its a very good information and i gained a new things from it.Thanks for sharing the information with us.
Startup Consultants in India | India Entry Strategy Companie

January 29, 2014 5:08 PM  
Blogger rohit nandavadekar said...

Sir please guide me about how to handle distributor at the time of making primary? If monthly sale is Rs.5lakh then how to convince him to make RTGS of Rs.10 Lakh?

June 24, 2014 8:47 PM  
Blogger rkm itservices said...

Product Outsourcing Company in Delhi - IT outsourcing companies are now jumping on the IT products outsourcing to maximize the efforts of business process outsourcing firms that provide IT products outsourcing services as they ramp up their efforts to maximize the opportunities of the IT services reform.

December 04, 2015 12:16 PM  
Blogger Rashmi Goyal said...


December 21, 2015 1:25 AM  
Blogger Rashmi Goyal said...

J and J really have a nice salesforce. In spite of a big brand its important to have quality salesforce.

December 21, 2015 1:27 AM  
Blogger Rashmi Goyal said...

Ajay.. but brand name does matter. Nobody knows about the sales person but the brand name. Brand consciousness also increases demand. Our economy is booming, growing demand for premium products makes people turn towards brands.

December 21, 2015 1:28 AM  
Blogger Rashmi Goyal said...

dats rit, but there are many factors involved which contribute to achieve sales targets and eventully profit. Todays technology helps a lot to achieve it.

December 21, 2015 1:29 AM  
Blogger Rashmi Goyal said...

Yusuf. But if you are one of the top brands from your industry then i dont think one requires help of these other factors.

December 21, 2015 1:31 AM  
Blogger Rashmi Goyal said...

I agree with Rahul. It also depends on the technology they are using to reach to the target market, these companies maintain their supply chain, use softwares like SAP or any Sales force automation solution. I have some contacts, they say they use mobile based application, base sfa, which gives you real time data of doctors, chemists or stockists.

December 21, 2015 1:53 AM  
Blogger Rashmi Goyal said...

almost evey MNC and market leader is using SAP, salesforce.com.

December 21, 2015 1:55 AM  
Blogger Rashmi Goyal said...

SAP is more from manufacturing perspective. We are into marketing only. Salesforce is very hefty in pricing. Need a cost effective solution, which even a 10 grade drop out can use. In FMCG you won't see many graduates.

December 21, 2015 1:59 AM  
Blogger Alice Denny said...

Welcomes to google terminal from Austin Texas! google snake
Amazing insight you have on this, Happy wheels it's nice to find a website that details so much information about different artists... Age of war 2 This article always blew me... Earn to die For how many times I have read this.
slither io Hi! I’ve been reading your blog for a while slitherio it's nice to find a website that details so much big farm

June 20, 2016 12:43 PM  
Blogger Linda Jones said...

Very nicely written post, thanks for the insights on FMCG marketing.

Bulk SMS

July 28, 2016 6:04 PM  
Blogger Sunjay Kapoor said...

material handling equipments | Automated Storage & Retrieval System | Conveyors | Automated Guided Vehicles | Warehouse Management System | SCADA Supervision Software

March 07, 2017 11:46 AM  
Blogger Build Mitra said...

Thank you for your post. This is excellent information. It is amazing and wonderful to visit your site.
construction material suppliers in vijayawada

construction material suppliers in guntur

basic building construction material suppliers

wholesale and retail cement suppliers in guntur or vijayawada

March 22, 2018 4:10 PM  
Blogger sagar singh said...

Health and glow are two of the many things that green tea has to offer. We all know that green tea is a great for our health, but do you know that is works wonders for our beauty as well.Twigees provide you a instant source of Green Tea as a Green Tea Sticks.
teabox, tea-box,tea plant twigees green tea,


April 09, 2018 4:18 PM  
Blogger Build Mitra said...

Thank you for your post. This is excellent information. It is amazing and wonderful to visit your site.
modern electrical switches in vijayawada

basic building construction material suppliers

best building hardware suppliers in Vijayawada

bathroom fittings suppliers in Guntur

April 11, 2018 10:47 AM  
Blogger Jobin Mon said...

best digital marketing agency in Chennai - Hashtag Inc. Our services include Branding, Digital Marketing to Designing and Video Editing, this is not all we do, this is all we do our best. Hence then, we are called as best digital marketing agency in Chennai. Visit Hashtag Inc @ http://www.hashtaginc.co.in/

June 21, 2018 3:35 PM  
Blogger meenshvit said...

Good Post. I like your content. It is useful information. As you know world is changing rapidly. Translation has played its important role in connecting the world. We provide all language translation services. English to Punjabi Translation

July 02, 2018 2:23 PM  

Post a Comment

<< Home