Wednesday, February 10, 2016

FMCG Brands - Small versus Consumer Giants

In developing countries like India, how do you select which brands to buy?  Biscuits, dairy, soft drinks, nutritional supplements, toiletries...

Currently, we follow these rules:
  1. Either it is a big brand, e.g., Hindustan Lever, Reliance, P&G, or the product is extensively advertised with lavish advertising budgets on prime time, which makes it appear cool.
  2. Or, one has to keep trying different brands and then decide.
In developed nations, the quality control is so strict that manufacturers cannot create or import a product below a certain quality benchmark.  So consumers can safely try any new products.  Not so in India.  Any new manufacturer is eyed suspiciously and maybe 1 out of 100 new brands survives in the market.  Among non-MNC brands, only those who are well established over a few decades are able to survive.  Any product manufactured by new startups finds it very difficult to earn the consumer’s trust.

[To be continued...]



[Comments very much appreciated.  Thanks!]

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