Arpit Kalra’s Post

Mayank Shah, Parle Products: “For large FMCG companies, premiumisation has picked up pace since margins are much better when cost of selling has gone up, be it cost of product placement in modern or general trade, or the selling fees in ecommerce. Also, the competitive intensity in mass products is at an elevated level since smaller regional players have returned with a vengeance after input costs came down last year. In the premium segment, competition is still limited, hence bigger companies are restricting new launches mostly to premium products. It is also not so profitable to manufacture packs of Rs 5 in large numbers because of higher packaging costs. There is a natural evolution to packs of Rs 10.” Indian Premium League: Premiumisation picks up pace for large consumer goods companies https://lnkd.in/e7ryPCYf #india #consumer #trends #FMCG #bop #sachet #premium #NielsenIQ #hul #parle #food #skincare #electronics #mobiles #Dabur #Emami #Samsung #LG #Xiaomi #Haier 

Why Dove, a Premium Soap, Thrives in One of India’s Poorest Regions: A Case Study in Consumer Behavior and Strategy 🧼 It might seem counterintuitive, but Dove, one of India’s most expensive soap brands, is thriving in a state known for its economic challenges. How is this possible? 📊 Understanding the Consumer: In economics, there’s a concept called binary spending—"Those with money are thrifty, those without splurge." Middle-class consumers spread their spending across many categories (shoes, books, ice cream), leaving less room for premium products in each category. However, lower-income consumers tend to focus on fewer categories and opt for the best available product in those areas. This is why, despite limited disposable income, many in this region choose Dove as their premium personal care product. Rather than spending on multiple items, they prioritize quality in select categories. 🛍 Unilever’s Strategy: Unilever has tapped into this behavior with several smart moves: Affordable Luxury: By offering smaller pack sizes (sachets, small bars), they’ve made Dove accessible to a broader audience, even in rural areas. Brand Positioning: Dove is marketed as a moisturizing, skin-friendly brand—a strong appeal in regions where consumers are conscious of skin health due to harsh climatic conditions. Distribution Mastery: Unilever’s extensive distribution network ensures that Dove reaches even the most remote areas, maximizing availability. 💡 Key Takeaway for Marketers: Never make assumptions about where your premium products will succeed. Test your product across various income segments. Sometimes, your biggest opportunity lies where you least expect it. #ConsumerInsights #Marketing #UnileverStrategy #Branding #BusinessGrowth #FMCG #India

With new product launches, localised strategies, and a focus on sustainability, beauty brands are aiming to connect with consumers and elevate their festive experience. Indian beauty brands share their marketing plans for this festive season. Experts: Vidushi Goyal, CMO, Swiss Beauty Rishabh Sethia, Director & Business Administrator, MARS Cosmetics mihir munot, Sales and Marketing Director, Insight Cosmetics Saahil Nayar, MD & Co-Founder Mila Beauté Naveen Murli - Vice President - Marketing, SUGAR Cosmetics Shankar Prasad, Founder & CEO, Plum Follow the link in the comments to know more #Advertising #Marketing #beautyfestivemarketing

Scensation Growth in Fragrance sector • Strong Growth in #Fragrance Sector: • The fragrance market grew by 12% year-on-year, nearly double the growth of the personal care sector (6.2%) and overall #FMCG industry (5.7%). • Roll-on deodorants were a major driver, with an impressive 26% growth. • Market Value and Key Players: • The Indian fragrance market is valued at ₹4,771 crore. • Major contributors include Hindustan #Unilever, #ITC, #Nivea, Vini Cosmetics, #Godrej Consumer Products, and #Emami. • Homegrown brands like #Fogg, #Engage, #Denver, He, and Wild Stone are challenging multinational brands. • Key Factors Driving Growth: • Increased urbanization and the influence of social media. • Rising popularity of quick commerce platforms. • A younger demographic contributing to higher demand. • Performance Highlights: • Godrej Consumer Products saw double-digit volume growth in fragrances. • #ShoppersStop recorded a 17% rise in fragrance sales in the July-September quarter, outperforming beauty product sales (10% growth). • Organized retail and roll-on deodorants contributed significantly to growth. • Potential for Expansion: • Despite robust growth, the fragrance market remains under-penetrated, indicating significant room for further development. For full article read here https://lnkd.in/dMxexDEp A recent popular #Fogg commercial Bestvantage Investments #D2C #consumer #Branding, #Advertisingandmarketing #founder #startup #founders #financialresults

India’s #beauty and #personalcare market is expected to grow at a compounded annual growth rate of 10-11% to reach $34 billion by 2028, according to Nykaa Beauty Trends Report. Click on the link below to know more... Nykaa I Falguni Nayar I Anchit Nayar I Adwaita Nayar I Rajesh Uppalapati I Ganesh P #Nykaa #trendsreport #beautymarket #growth #personalcare #retailnews #retailtrends #retailsector #retailindustry #retailgrowth #retailing #businessgrowth #Indianretailmarket #retailresults #retailindia #retailupdates #retailsectornews #businessnews  #retailbusiness #ir #IndiaRetailing

#Parle continues to be India's top FMCG brand at home, 12th time in a row According to the latest edition of Brand Footprint, Kantar World panel’s annual ranking of the most chosen consumer brands in India. In fact, seven of the top 10 brands are owned by homegrown companies. The Brand Footprint study ranks brands on the basis of their consumer reach points, or CRPs, a metric that combines how many households are buying a brand (penetration) and how often (frequency of purchase). Out of nearly 445 brands, #Parle with 7.98 billion CRP has been on the top since the launch of its brand footprint twelve years ago followed by Britannia that had CRP of 7.93 billion. Both these brands gained 6% and 16% each. Hindustan Unilever's shampoo brand Clinic Plus was the only non-food exception in the top five brands although it declined 5% to 4.14 billion. "Consumer choice is a very reliable strength test for a brand across market conditions and Brand Footprint has been a widely acclaimed ranking system to measure this for over a decade now. As we see over the years, consumers are making increasing trips for purchase and that adds their options and in-turn, their choice. This is reflected in the constant increase in CRP’s," said K Ramakrishnan, managing director- South Asia, Worldpanel Division at Kantar. Nearly two years ago, #Parle Products, which retails brands including Parle G, #Monaco and #Melody, crossed $2 billion in annual revenues, becoming the first packaged food company in India to breach the mark. The five-rupee-a-pack Parle-G value has grown despite slowdown due to its low value money plank especially during inflationary times when consumers are cutting spends and opting for smaller packs. #consumerdurable #marketupdate #fmcgnews

In today's digital age, data and marketing go hand in hand. Attempting marketing without data or using data without marketing is like shooting in the dark. It hampers a brand's ability to seize emerging opportunities, understand customer trends, and effectively meet customer demands. Different customers need different marketing approaches. For instance, marketing a premium brand requires a different strategy than marketing a mass-market brand. In these cases, micro-segmentation is essential. By narrowing down customer groups and adjusting marketing strategies, from positioning and advertising to communication, brands can better target their audience. A single mistake in this process can lead to significant waste in marketing budgets. To avoid this, some leading brands are leveraging AI and ML to predict trends and optimize their product placement. For example, ITC uses these technologies to anticipate emerging trends and place premium products in stores accordingly. ☑ Amul showcases its premium ice creams in upscale parlors like Amul Ice Lounges. ☑ Maruti Suzuki India Limited (MSIL) targets upscale customers with its brands like Invicta and Grand Vitara through Nexa Retail Stores. ☑ Tata Trent manages different segments effectively by retailing groceries, vegetables, and staples through Star Bazaar, while offering men's and women's apparel and footwear through Westside. For budget-friendly apparel, they have Zudio. These examples highlight how data-driven marketing strategies help brands cater to various customer segments effectively, ensuring efficient use of marketing budgets and meeting diverse customer needs. #marketing #data #customer #premiumanisation #brand #advertising

Beards. Brands. Billions! For most of the early 2000s, brands like Gillette dominated the male grooming category, until a disruptive digital brand, Dollar Shave Club, shook the market with an online subscription model and a viral marketing campaign. The success of Dollar Shave Club, culminating in its $1 billion acquisition by Unilever, quickly became a model for new entrants in India. Starting around 2016, brands like Bombay Shaving Company and Beardo began replicating this approach. Although big bets have been placed on the sector by top FMCG players, growth is still not up to the mark, as per industry experts. Check out my debut FMCG story that dives deep into the booming personal care category: https://lnkd.in/dGhqBRB5

Biscuit brand Parle continues to be the most chosen in-home brand according to the latest edition of the annual Brand Footprint Report released by Kantar. The report ranks brands based on Consumer Reach Points (CRP’s). CRP considers the actual purchase made by consumers and the frequency at which these purchases are made in a calendar year. The report measures CRPS of 445 brands. “ With a CRP score of 7980 million, Parle holds the top spot as the most chosen in-home brand for a record 12 th year in a row,” the report noted. Other brands in the top five rankings include Britannia, Amul, Clinic Plus and Tata Consumer Products. #parle #brand #tata #business #affiliatemarketing #digitalmarketing #enterpreneurship #highadsmedia

HONASA CONSUMER Q1FY25: Quick Thoughts It's a good set reported by the company that prides itself on targeting at least 2X industry growth with improved operating performance. In that regard, a 19% revenue growth led by 25% volume growth that has resulted in 58% EBITDA growth is impressive. Key internals have panned out well too, with the mother brand (pun intended), Mamaearth gaining market share in key categories, Innovations accounting for 9% in overall Q1 sales and offline distribution having increased beyond 2 lakh outlets. Bblunt, too has reached an annual revenue run-rate of 100 Cr. However, what one needs to be mindful of in the near term, is the impact of competition (all traditional players have upped the game in premium, natural, masstige and beauty & wellness offerings), secondly at what level do Ad Spends as a % of sales start to normalize? and thirdly, what kind of near term impact will the distribution revamp project have on sales and margins due to a one-time inventory correction. On its part, the company is confident of 20% growth and 150 bps margin improvement over the medium term. I'll be particularly interested in the impact their newer premium launches in the Sunscreen and Facewash category do in the near future. Here's a quick summary of the results: HONASA Q1FY25 What’s Good: - Revenue +19.3%; led by 25.2% Volume Growth - EBITDA +58%, Margins improve 200 bps - PAT +63% at 40.2 Cr vs 24.7 Cr   What’s Not: - Ad Spends at 36% of sales vs 35% - Distribution revamp may lead to near term inventory correction   Key Internals: - Mamaearth Market Share Improved 115 bps in Facewash, 51 bps in Shampoos - New Products contribute ~9% to Q1FY25 Revenue - BBlunt Product Business reached an ARR of INR 100 Cr - Offline reach crossed 2 lk outlets, increased 30% YoY   Mgmnt Guidance: - 20% revenue growth & 150bps margin expansion in the medium-term   Trends to Track - Sunscreen category could be 5117 Cr by 2028, vs 1874 Cr in 2023 - Facewash category expected size at 9700 Cr by 2027, Co’s facewash ARR at 800 Cr - Discontinued brand Ayuga, due to non-performance of brand   #StockMarket #FMCGisLife #MamaEarth #CNBC #ResultsBreakdown #QuickThoughts Varun Alagh Ghazal Alagh #FMCG #Honasa #India