India Can Achieve a Double Digit Growth Rate
Challenges in front of us
India has learned a lot of new lessons during last two decades so based on these experiences we have fair chances for improving our progress story. India is in the group of front runners of developing nations contributing their share to world community. India is especially doing well on economical front and this perhaps is the best time when we should have a look on our stats and plan for a rapid future growth.
As per the general belief among the world community that India’s contribution and growth story is limited to software sector only but the fact that India is progressing in all fields including manufacturing, infrastructure, agriculture, health sector and education. However, we should look beyond what we have already achieved and look further on newer avenues.
Poverty should be on the top of priorities list since we have close to 200-250 million people in the list of below poverty line depending upon various scales set by different agencies based on their annual income or consumer products used by people who participated in the surveys. But if we do not take all those surveys and their outcome into account the fact is there are at least 50 million people in poor living condition in India.
According to Merrill lynch global wealth management there are more than 200,000 people having more than $100 million or more in India and the number of people in this list is increasing at a rapid rate every year. We can boast about world’s largest middle class in the range of 300 to 350 million people in our country but at this point we should concentrate on poor class.
Most of our poor people live in villages working as agricultural workers having no land working for bigger farmers but not earning enough to manage food, education and childcare for their family. In fact it is our chance for uplifting and doing concrete efforts for uplifting the poor of this country. And if succeed in doing so then there is nothing that can stop us from attaining a double digit growth rate.
Fast Moving Consumer Goods- The Changing Trends
Fast Moving Consumer Goods is comparatively new concept in Indian corporate sector although the consumer products have always been the part of our economy. However, the buying trend of Indian consumers has entirely changed now he is willing to spend more money for premium products. Indian consumer has become more demanding now his demands are not limited to a particular brand or a packing but he needs them in product format.
For instance Hand Wash, body Wash, Face Wash and Shampoos have replaced earlier cake soaps used for bathing, hand washing and other general purpose uses. The industry now concentrates more on needs and demands of consumers like they provide their products in various packing according to size and choice of the consumer.
It’s no more sellers market but with so many players to cater the needs of consumer they keep a close eye on consumers’ choice and demand. Their market research wings constantly keep a watch at their consumers preferred size of packing or their customer needs the product in a sachet or a plastic bottle sells more than poly-pack. Companies keep a watch on customer’s convenience according to his demand of size and price preferences.
Companies like Parle are ready to provide pack of biscuits in the range starting from 50 Paisa (8 cents) to costlier products. Pepsi, Coca-Cola and other companies in soft drinks sector keep experimenting with size unlike previously when only one pack in glass bottle was available in Indian markets. Companies like Colgate are continuously changing color, taste and ingredients of their products to stay in the race.
If we look carefully at the way of working of top 100 FMCG companies operating in Indian market there are 62 multinational brands and out of these 27 top brands come from one company the Hindustan Unilever itself. The other popular brands are from Nestle India, Cadbury India, Dabur India, Britannia India and Proctor & Gamble etc. Maybe the companies are able to change the taste of consumers with their advertizing campaigns but the fact remains the consumer is the ultimate boss.
But do you know that Patanjali, the fastest growing FMCG Company of India under the aggressive campaigning of Baba Ramdev is going to beat some of the established companies very soon or drive them out of business?
Fast Moving Consumer Products
Most common people would give you a strange look if you ask them what FMCG does mean to them. Or at most their reaction will be limited to “oh you must be talking about consumer products”. But the matter is not that simple but the fact is if you look around you will find you’re pretty much surrounded with products that come in fast moving consumer products.
For instance, you begin your day with hand wash, tea or coffee, toothpaste and brush then you use soap, shampoo, moisturizer, conditioner, hair oil or cream. In a hurry for office you probably will eat gem, bread and bread or cornflakes with milk and ready to go out probably using deodorant or scent. There are so many other choices for your lunchbox like noodles or other readymade preparations coming from FMCG section.
You name any of the products that you use during your day and the FMCG comes to play its role in your daily routine. There is a long list of FMCG companies in India some of these are multinationals but each one of us use products manufactured by one or more of these companies on regular basis like Hindustan Unilever Limited, ITC Ltd, Amul, Britannia, Parle Agro, Pidilite Industries, Bikanervala, Wipro Consumer Care, Haldiram, Himalaya, Emami, Dabur, Godrej, Tata, Nestle, Marico, Proctor & Gamble, Agro Dutch, Agro Food, Kohinoor Foods etc.
The fact is you cannot survive without them and there is nothing new but the trend is going on for long time. Remember the time when Dettol was your only choice as an antiseptic or Lifebuoy was the first soap that came to mind as an antiseptic soap or Lux and Pears as regular soaps. Surf used to be the first choice of consumers as laundry detergent powder with its various brands as quality and status symbol but Nirma managed to capture most of the washing powder sector as it was comparatively economical.
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