Local retailers on revival path
In such a scenario, collaborating with regional players could be a strategic move to tap into their expertise and expand market reach, says Himanshu Srivastava, Head of Ecommerce, Beetel Teletech Limited.
| Aug 3, 2023, 19:14 IST
Local FMCG brands in India are gaining ground over larger national ones when it comes to market share, reports The Economic Times, citing a survey by Kantar.
A slowdown in inflation along with India’s changing consumer landscape, the rise of entrepreneurship, and rapidly growing direct-to-consumer brands are factors driving this trend, the report says.
During the pandemic, local brands suffered due to logistical issues and also because consumers made a shift towards branded items during the uncertainty, says K Ramakrishnan, MD, South Asia, Worldpanel Division at Kantar. However, after the pandemic, local brands are now on a revival path, even outpacing big FMCG players, Ramakrishnan adds.
“The rise of local players is reshaping the FMCG landscape in exciting ways,” says Dr. Sanchit Misra💡, Management Trainee at DFM Foods Limited. As local brands capture market share, the industry is experiencing a wave of localised innovation, providing more choices to consumers, and fostering healthy competition, he adds.
The survey also finds that mass consumers are willing to buy unbranded products if they provide the right value.
In such a scenario, collaborating with regional players could be a strategic move to tap into their expertise and expand market reach, says Himanshu Srivastava, Head of Ecommerce, Beetel Teletech Limited. However, he also believes that with the diversified market landscape, consumers will benefit from a wider range of choices, leading to increased innovation and product variety.
The Indian retail industry is expected to grow annually at 10% to reach nearly $2 trillion in value by 2030, mainly driven by mass consumers, the report adds.
A slowdown in inflation along with India’s changing consumer landscape, the rise of entrepreneurship, and rapidly growing direct-to-consumer brands are factors driving this trend, the report says.
During the pandemic, local brands suffered due to logistical issues and also because consumers made a shift towards branded items during the uncertainty, says K Ramakrishnan, MD, South Asia, Worldpanel Division at Kantar. However, after the pandemic, local brands are now on a revival path, even outpacing big FMCG players, Ramakrishnan adds.
“The rise of local players is reshaping the FMCG landscape in exciting ways,” says Dr. Sanchit Misra💡, Management Trainee at DFM Foods Limited. As local brands capture market share, the industry is experiencing a wave of localised innovation, providing more choices to consumers, and fostering healthy competition, he adds.
The survey also finds that mass consumers are willing to buy unbranded products if they provide the right value.
In such a scenario, collaborating with regional players could be a strategic move to tap into their expertise and expand market reach, says Himanshu Srivastava, Head of Ecommerce, Beetel Teletech Limited. However, he also believes that with the diversified market landscape, consumers will benefit from a wider range of choices, leading to increased innovation and product variety.
The Indian retail industry is expected to grow annually at 10% to reach nearly $2 trillion in value by 2030, mainly driven by mass consumers, the report adds.