The Rs.85,000 crore FMCG market in India is growing at a fast pace despite of the economic downtrend. The increasing disposable income and improved standard of living in most tier II and tire III cities are spearheading the FMCG growth across the nation. The changing profile and mind set of the consumers has shifted the thought to “Value for Money” from “Money for Value”.
Over the years companies like HUL, ITC and Dabur have improved performance with innovation and strong distribution channels. Their key categories have strengthened their presence and out performed peers in the FMCG sector. On the contrary, Colgate Palmolive and Britannia Industries are strong in single product category i.e. tooth pastes and Biscuits. In addition companies have been successful in reviving their presence in the semi-urban and rural markets.
One More interesting trend to note is in the advertising because we all know a major success reason of any F.M.C.G. product is its advertising. In advertising on one hand we can see that the market of Television with youth is decreasing because of Fast lifestyle and availability of most of the interactive media on Internet. So there is an emerging trend whereby F.M.C.G. players have increased their focus on online advertising which is expected to grow at 30% a year. While on the other hand the inclusion of Television is increasing with the fall in the Television prices and comparative increase in the Purchasing power but still to attract that segment advertising solely on T.V. would be an expensive proposition and its reach would also be limited to the upper strata rural people. So, here companies are employing the rural media to increase their product awareness by employing the rickshaw, auto, Walls of houses and shops banner which have a higher reach and these mediums in village do attract attraction.
Over the years companies like HUL, ITC and Dabur have improved performance with innovation and strong distribution channels. Their key categories have strengthened their presence and out performed peers in the FMCG sector. On the contrary, Colgate Palmolive and Britannia Industries are strong in single product category i.e. tooth pastes and Biscuits. In addition companies have been successful in reviving their presence in the semi-urban and rural markets.
FMCG Sector is currently going through a drastic change in its approach and the market it is catering, the demand of the customers is changing and so the need arise for a change in the product or the way it is marketed.
One More interesting trend to note is in the advertising because we all know a major success reason of any F.M.C.G. product is its advertising. In advertising on one hand we can see that the market of Television with youth is decreasing because of Fast lifestyle and availability of most of the interactive media on Internet. So there is an emerging trend whereby F.M.C.G. players have increased their focus on online advertising which is expected to grow at 30% a year. While on the other hand the inclusion of Television is increasing with the fall in the Television prices and comparative increase in the Purchasing power but still to attract that segment advertising solely on T.V. would be an expensive proposition and its reach would also be limited to the upper strata rural people. So, here companies are employing the rural media to increase their product awareness by employing the rickshaw, auto, Walls of houses and shops banner which have a higher reach and these mediums in village do attract attraction.
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