Fmcg sector report pdf

This is why the importance of a reliable consumer good and retail consultant and FMCG consultant India, like Tecnova, is time and again established.

With a personalized approach, Tecnova, a leading FMCG consultant India, will offer you comprehensive services of food and beverage consulting in India, like:.

Indian FMCG sector is developing rapidly and is creating optimistic opportunities for foreign organizations to expand their presence and establish a profitable business in the country.

But amidst enormous competition, only a thorough market analysis and constant estimation of evolving consumer behavior will help in establishing a strong foothold in the respective industrial sector. Therefore, it has become imperative for businesses to take the assistance of a reliable FMCG consultant in India. It will help to re-build the market entry strategy with robust food and beverage consulting in India and ensure higher returns and sustainable growth in the long run.

Indian FMCG sector is the 4 th largest sector in the country, which promises attractive business opportunities for foreign investors.

This is also characterized by a growing need for premiumization and increased demand for branded products. The report also states that all the Tier 2 towns of India will grow by 4. It will be one of the main sources of growth for premium products — another lucrative playfield for budding foreign companies.

Furthermore, there is also a stark rise in rural consumption in recent times. Production Linked Incentive Scheme PLI proposed by Indian union cabinet in has also provided a boost to the manufacturing capabilities and exports. A professional consumer good and retail consultant can further help the cause. Cloud Kitchens Owing to the stark reduction in customer footfall, most food and beverage businesses are actively shifting to cloud kitchen models.

Health and Wellness Category There is a growing awareness among consumers about hygiene and well-being. PEST analysis helps the respective industry to overcome the future challenges. We have also analyzed the data with the help of hypothesis testing. We have also looked in to the future outlook and opportunities of the industry as a whole The report draws attention to the facts that getting inside the FMCG Industry is quite easy but sustaining in the market is the big challenge.

In order to obtain sustainability, they need to build a brand value inside the mind of consumers. Moreover, the result of data analysis shows that different FMCG companies have different level of profitability as well as brand value.

Their net sales, operating profit and PBIT also differs as per the company and years. As we know, a business starts with the customers and ends with the customers, company should focus on the needs and wants of the consumers and try to provide value-added service and products.

They should try to differentiate themselves from their competitors. Differentiating the products in FMCG industry can only be done by creating the brand value among the consumers. Recommendations discussed includes: In order to make their business more profitable and to satisfy their customer as far as possible they need to carry out different approach towards different products.

They should now focus more into the rural areas. The main reason is because targeting rural areas will be lucrative for them. FMCG players have already covered urban areas. Other option is trying to increase their amount of sales in other countries that is by increasing export. FMCG players should try to provide products that are different from other companies that will help to differentiate from others and also help to create a brand value as well as loyalty.

The meaning of this goods can be clearly extracted from the word FMCG itself. These products are sold in a fast space and the prices of these goods are relatively low. Further explaining the term non-durable, it includes all the goods that should be used within three years and less.

Because of this very fact, FMCG has a really short shelf life that may be because of its demand or may be because of its non- durable nature. FMCG are sold in a huge quantities but the profit margin is relatively low for the producers as compared to the retailers. But as the products are sold in large quantities, the aggregate profit will be enough to sustain the business. It stands out as the biggest industry in the world itself.

People recognize these brands from their trip to supermarket or from the various sources of advisement. In ever part of the home, you will find various brand of FMCG. The basic reason for its constant evolution is change in demand of people and creating an urge for consumer to buy that product. It keeps creating various needs for consumer. Another aspect is that the FMCG moves really fast from the time they are bought in the store to the time the shelves are being emptied to the time next stock is refilled.

FMCG focuses to retain its customer in order to go strong and to earn profit. Moreover, it also focuses on keeping its employee merry as satisfied employee equals to satisfied customer. Consumers need to buy FMCG products, as these are the basic necessity and essential commodities for them. Moreover, FMCG companies always focus on innovative ideas and technology to provide better products to the customers. It keeps the ends of the customer in first place and tries its level best to deliver and fulfil their expectation and necessity.

The only company that was able to sustain in this environment was Hindustan Unilever Limited, previously known as Hindustan Lever Limited. HUL had been the main player till then. It was carrying out their business in a urbane manner. Consumers however were limited to few choices but the entry of Nirma detergent powder bought a change in the FMCG industry as a whole. FMCG was no longer viewed as luxury products that were just targeted for the elite class of people.

It was regarded more as a day-to-day necessity for the masses in affordable price. The most used products from the list are toilet soaps, toothpaste, detergents, and shampoos, shaving goods, shoe polish, packaged food items and household products.

In this market about 2 trillion is covered by rural India in terms of its revenue. In the urban area, consumer prefers washing powder and detergents to bars, as there is increase use of washing machines and purchasing power and aggressive advertising as well. While in the rural areas, consumers are still using bars. Vim bars, of HUL lead the market by pleasing its customer.

It provides superior product and performance and constantly comes with new offering such as Anti-Germ Bar and Monthly Tub Pack.

Vim liquid dish wash is one of the hit products among many other dishwashing brands. Bar soaps dominates the largest segment of this products and second largest is the hair care products. People are becoming more aware of it as there is change in lifestyle, rise in income, more choices and ease in availability. Ready to drink tea and coffee segment is estimated to be crore in the next three years.

The total soft drink that includes both carbonated beverages and juices segment is expected to touch USD 1 billion.

Coca cola and Pepsi are the leaders in the Indian soft drink market. Many companies influence the customers through heavy advertising, marketing, packaging, low price strategy and more. Both rural and urban areas contribute the growth of this sector. Foreign FMCG players are also willing to enter the market of India, as there are many growth opportunities for them.

In the year , revenue had reached to There are various reasons behind this such as increase in consumption pattern, change in lifestyle and high purchasing power.

But in the year , there was a moderate growth rate of 9. As per a study conducted by Nielsen, 62 of the top brands are owned by MNCs and the rest by Indian companies. Among these 62 brands, Hindustan Unilever owns ITC Limited 2. Hindustan Unilever Limited 3. Nestle India 4. Dabur India 5. Godrej Consumer Care private Limited 6.

Colgate-Palmolive Company 7. Marico 8. Britannia Industries Emami These leading companies are providing food to household care and beauty to personal care products. C Ltd. In , periods were removed from the name. It is an Indian conglomerate headquartered in Kolkata, West Bengal. It employs more than people at more than 60 locations all across India. Later in June , it was again renamed as Hindustan Unilever Limited.

It is based in Mumbai. It employs more than 16, workers in India and indirectly helps to assist the employment of more than 65, people. Moreover, HUL has more than 2 million direct retail store all across India and its products are available in more than 6. Dabur India was established in the year by a physician names as Dr. SK Burman. Moreover, the same company also bought another SK Burman produced Ayurvedic medicine for various diseases such as malaria and cholera.

In the Ayurvedic Specialities Divison of Dabur, there is more than medicines treating various health related problems such as common cold to chronic paralysis. Its headquarter is in Mumbai, Maharashtra. GCPL products can be categorized into personal care and household care segment.

In India, it was founded in the year and now it serves more than million consumers in the India. Its headquarter is in Mumbai. In addition to this, it is dedicated to sustainable growth in India.

It also focuses on Environmental Protection and Social Responsibility in the places it operates. Literature review of the cane be explained on the basis of the following. A company can build its brand equity for their respective product by making the product memorable or easily recognizable and superior in the quality and reliability.

Various marketing campaigns or mass marketing campaign can help an industry to create its brand equity. If the consumers are willing to pay more for a generic product than from a branded product then the brand however is said to have negative brand equity. In different researchers view the brand equity in variety of the perspectives. Another researchers Srivastava and Shocker in the year that the definition of the brand equity is categorized in the other group of the definitions in which the brand equity consist of both the financial and consumer perspectives.

According to both of them brand equity comprises of brand strength and brand values. According to one more researcher Keller in the year there are two motives for studying the brand equity. First: to estimate the financial base motivation of the financial value of the brand more precisely for the accounting purpose or for the merger.

Although financial approach may provide a brand more precise insight about the valuation of the brand. For a brand manager it may not be useful to establish marketing strategies because financial approach is limited with the estimation of the brand values.

Second: to improve marketing productivity motivation arises from strategy based motivation. Researcher Lassar, Mittal and sharma in discussed the two perspectives of the brand equity which are based on financial Discussed above by Simon and Sullivan and customer based. Promoter or adherent of financial perspectives considers brand equity as a separate asset which can be sold separately to the consumer.

To this end, comprehensive support from business consulting companies in India becomes imperative to achieve a customized market study and understand the precise addressable markets.

Having learnt the benefits, most FMCG companies are now expected to maintain their digital presence through e-commerce channels.

Hence, foreign companies trying to undertake a business expansion in India now also need to invest in tech tools, create new apps that will facilitate online shopping, online product launch, and smooth online payments and transactions, etc. The importance of the current trends in FMCG industry in India and business consulting companies in India has, therefore, become all the more indispensable. It is essential to acquire skilled personnel for marketing and promotional activities and in areas like a product launch and PR management.

A rise in average income level, increase in the disposable income of middle-income groups, increasing urbanization, and change in consumer preferences for hygienic products have driven the growth of this sector. While the per-capita food consumption has been emerging in the rural sector, the urban market has witnessed increased demands for instant meals category; Ready to Cook RTC , Ready to Eat RTE are shaping current consumer preferences as well.

Further, the changed consumer behavior towards hygiene and health post the COVID crisis has also increased the demands for sanitizers, hand wash, disinfectants, wipes, and home cleaning products, thereby setting a new trend in the FMCG sector.