Professional Documents
Culture Documents
Fruit juices have reported exponential growth, moving from near-zero levels in FY2000 to INR 9 billion at present.
personal products category with skin-care creams outpaced growth of highly usable product s lines such as
While the Indian GDP per capita is low, many Indian consumer segments which constitute rather large absolute numbers are either close to or have already reached the tipping point of rapid growth. This is true for most categories of consumer durables, beauty and wellness goods, such as, skin-care products and even edibles such as packaged beverages, all of which have reported significantly faster growth rates.
the viability of sub-markets in India, growing organized retail and the increasing globalization of FMCG players
sociopolitical, legal, environmental and technological reprioritizing Changing government policies, growing importance of sustainability, evolving media platforms and technology will compel FMCG players to adopt business strategies which keep the interests of communities and the environment in mind for inclusive development
It is heartening to note that by 2025, percentage rural population in the INR 200 thousand to INR 500 thousand category is projected to increase to 22 per cent from the present level of 3 per cent
Affordability is a challenge for BOP consumers. For affording high ends brands BOP consumers want a price point which is affordable and hence demand smaller SKU
The corporate sector has realized that the next growth in its business will come from the rural sector. Rural is a much discussed topic in boardrooms Pradeep Kashyap, Founder and CEO, MART
Brand Sharing
Hypermarts
Supermarts
Eco-consciousness
Increased eco sustainability of business will be extremely important for FMCG companies in the future. Global climatic changes and the growing scarcity of natural resources have already led to increased concerns about the environment. Stakeholders for environmental concerns are:
Government Reduction of carbon emission by 25% by 2020.
Competitors
Sustanability practices by FMCGs
Some of the top sustainability issues worldwide have also been identified for the FMCG industry in India are
Packaging
Harmful emission
Water utilization
Health impact
online advertising
Coca-Cola has invested in customized wireless hand-held devices for its sales persons. The devices have wireless receipts of the list of customers to be visited and other customer details. HUL has an internet-based supply chain management system which connects it to the redistribution stockists. This focuses on primary sales (HUL to stockists) and secondary sales (stockists to retailers) along with enhanced communication
Implications
Disaggregating the Operating Models Winning the Talent Wars Bringing Sustainability into the Strategic Agenda:
Sustainability as a Core Business Strategy Sustainability in Product Innovation Using the Sustainability Lens throughout the Product Lifecycle Sustainability Driving Major Decisions Integrating Sustainability into Marketing and Messaging
Reinventing Marketing for i-Consumers Re-engineering Supply Chains Partnering with Modern Trade
Retailer
NGOs Major role in driving sustanability efforts