Sanjeev Srivastav’s Post

Hi, FMCG Leaders! 2024 Indonesian FMCG Festive Report by Kantar highlights significant consumer behavior and trends during the festive season. Key points include regional growth, price-pack strategy, and brief explanation about the growth of beauty sector in younger shoppers during Festive this year. The report also highlight the strategy to anticipate the next festive on 2025 and advised to prepare early in aligning marketing and promotional strategies to capitalize on consumer trends and preferences.

As consumer preferences grow more selective, #FMCG companies are shifting focus toward “#designing for #India,” #investing in products that cater to varied local tastes and preferences. https://lnkd.in/gaZd-yiS

Coca-Cola Still the World's Most Purchased Brand: Kantar's Brand Report 🥤 #Day70 of 90, Covering FMCG The latest edition of Kantar's annual Brand Footprint report has revealed that Coca-Cola continues to dominate as the most-purchased brand globally. Key Highlights🔆: ▪️Coca-Cola's Dominance: Chosen nearly 8.3 billion times globally, with a 2.6% increase in household penetration. ▪️Consumer Behaviour: The report covers 62 markets, representing 76% of the world's population and 86% of the global GDP. ▪️Increased Consumer Spend: Average food spent per household has surged to over $1,000 (₹83,541), a 60% increase compared to 2013. Fastest-Growing Brands🛍️: ▪️Red Bull: The fastest-growing FMCG brand with a 17.8% increase in purchases, particularly strong in Brazil, mainland China, France, Germany, and the U.S. ▪️Sunsilk: Attracted over 26 million new households in 2023. Consumer Spending Trends📈: ▪️Overall Increase: Average spending on consumer goods rose by 8.6% to $1,052 (€967.35) per shopper. ▪️Growth Drivers: Food inflation at 4% and a trend towards high-end product purchases as a coping strategy for the rising cost of living. ▪️Geographical Insights: U.S. households had the highest average spend on packaged consumer goods at $3,063 (€2816.52), while Bangladesh had the lowest at under $159 (€146.21). These insights highlight significant shifts in consumer spending and brand preferences worldwide. What are your thoughts on this? Follow for more updates Aryan Mahi --------------------------------------------------- #news #finance #world

FMCG Trends: Evolving Consumer Needs and Global Growth Opportunities! Emerging trends in FMCG reflect evolving consumer needs and global market dynamics, fostering innovation and growth. From #onlineshopping to premiumization, the industry adapts to changing lifestyles and preferences. With #AsiaPacific leading the charge, the sector embraces new opportunities fueled by population growth and #economicdevelopment. #AMR #FMCG #ConsumerNeeds #GlobalGrowth #Innovation #Ecommerce #Premiumization #MarketDynamics #ConsumerPreferences https://lnkd.in/dbtjcjkA

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

#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, hashtag #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, hashtag #Parle Products, which retails brands including Parle G, hashtag #Monaco and hashtag #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. hashtag #consumerdurable hashtag #marketupdate hashtag #fmcgnews

₹10 IS THE NEW ₹5 AND ₹20 IS THE NEW ₹10. Low-priced packs popular in India for impulse purchases aren't as low-priced as they used to be. Not surprising really, as with increasing input costs the grammage of product in the lowest price packs has been reduced by manufacturers. And buyers always want more for their buck. And since the smallest and cheapest packs now usually no longer offer the maximum grammage per rupee, it's become common for buyers to upgrade to the next price point, ₹10 and ₹20. This is particularly true for food products. This study makes me smile with satisfaction, since working with different FMCG food brands, I had recommended a product/pricing strategy in line with this trend being reported. For a brand selling larger packs of snacks (100/200 gm and up) through their own stores, I had recommended using ₹10 and ₹20 packs to fuel it's retail expansion beyond its branded stores. And for another brand selling low-priced choco-based products but struggling to retain grammage to make the ₹5 and ₹10 packs seem attractive to buyers, I had recommended adding more product and moving up to the ₹20/25 bracket, an increasing popular space that larger brands were already present in. Smart marketing ideas take shape when experience, observation, insights and intuition come together nicely. What do you think?

🛍️ Consumption resumption 🛒 🎯 As competition intensifies in the fast-moving consumer goods (FMCG) playground in 2024, the urgent need for brands to identify their unique growth drivers to stay ahead of competition has been highlighted. 🔎 Worldpanel by Kantar Vietnam’s report released on March 27 reveals that Vietnam's FMCG sector stands at a crossroads. While economic growth projections for 2024 are positive, consumer confidence at the end of 2023 remained subdued. ⏩ The fast-moving consumer goods (FMCG) retail landscape in Vietnam is also shifting to more convenient and modern formats, but not all modern trade channels can win. 🏪 Mini stores are gaining popularity due to expanding product availability as well as proximity and convenience advantages. This rise comes at the expense of hypermarkets and supermarkets, whose value contribution is facing a gradual decline. ©️ For brands attempting to be more present in smaller formats, every inch of shelf space becomes precious real estate. Brands need to maximise space to meet more shopper needs and missions with strategic product selection with less space. 💻 Meanwhile, the online space is exponentially growing in importance, capturing a bigger buyer base and fostering increased purchase frequency. 💡 Kantar's data also reveals that over half of FMCG brands struggled to keep pace with the competition in 2023, particularly within growing categories where approximately one-third of brands began to lag. 💰 Meanwhile, there is the growing importance of value consciousness, where consumers prioritise essential goods but are willing to invest on categories and products that add value beyond functionality. ❓In a value-conscious environment, simply offering promotions to drive short-term sales growth might not always be beneficial to brand growth. Looking at the efficacy of different types of promotions will allow brands to assess the true impact of their pricing and promotional efforts and refine their strategies accordingly. https://lnkd.in/d657CbBD

𝐈𝐧𝐝𝐢𝐚'𝐬 𝐌𝐚𝐥𝐭𝐞𝐝 𝐌𝐢𝐥𝐤 𝐌𝐚𝐫𝐤𝐞𝐭: 𝐀 𝐏𝐨𝐰𝐝𝐞𝐫 𝐊𝐞𝐠 𝐨𝐟 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧 #india #sales #fmcg #milk The malted milk powder market in India is a fascinating battleground where giants like Unilever and Mondelez International clash for supremacy. This Rs 5,000 crore market is dominated by a few key players, each with its own unique strategies and brand loyalties. Unilever's Dominance Unilever, with its iconic brand Horlicks, enjoys a commanding 44% market share. Horlicks has been a household name for decades, synonymous with nourishment and growth. Its strong brand equity, extensive distribution network, and aggressive marketing campaigns have solidified its position as the market leader. Mondelez's Ambitious Play Mondelez International, with its popular brand Bournvita, holds a 15% market share. Bournvita, known for its "Grow Strong, Grow Smart" campaign, has been steadily gaining ground, especially among the younger generation. Mondelez's global expertise and marketing prowess have fueled its growth in the Indian market. Other Contenders Zydus Wellness, with its Complan brand, occupies a 6% market share. Complan, positioned as a complete health drink, caters to specific health needs and has a loyal customer base. The "Others" category, comprising various regional and smaller brands, collectively holds a 24% market share. These brands often compete on price and local preferences, carving out a niche for themselves in the market. The Battle for Growth The malted milk powder market in India is witnessing intense competition, with players vying for a larger share of the pie. To stay ahead, companies are adopting various strategies: Product Innovation: Introducing new variants, flavors, and formats to cater to diverse consumer preferences. Brand Extensions: Leveraging existing brand equity to launch new products in related categories. Digital Marketing: Utilizing digital platforms to reach a wider audience and engage with consumers. Distribution Expansion: Strengthening distribution networks to reach even the remotest corners of the country. Challenges and Opportunities While the malted milk powder market in India offers immense potential, it also faces certain challenges: Price Sensitivity: Consumers are price-conscious, especially in rural areas, which can limit premium pricing strategies. Changing Consumer Preferences: Evolving consumer tastes and preferences, particularly among the younger generation, can impact brand loyalty. Intense Competition: The fierce competition from established players and emerging brands can erode market share. However, the market also presents several opportunities: Growing Middle Class: The rising middle class with increasing disposable incomes is driving demand for premium and specialized products. Urbanization: Urbanization is leading to changing lifestyles and dietary habits, creating new opportunities for malted milk powder consumption.

India Brand Equity Foundation (IBEF) quotes our recent report on F&B consumption habits in its article about Indian companies developing new products by "designing for India." https://lnkd.in/gYtyfHHz