MAM

FMCG sector poised to see growth after stagnation period

MUMBAI: The AAAI seminar titled Beyond the Horizon; to celebrate the Diamond Jubilee of the industry body was held in Mumbai on 22 July. The first session was dedicated to the FMCG industry.

 

 

The session was chaired by Madison Communication CMD Sam Balsara and the speakers were CavinKare Ltd CMD C K Ranganathan and Marico chief marketing Saugata Gupta.

 

 

Balsara said, "The advertising and marketing industry in its earlier days was synonymous to the FMCG sector. Even when the broadcast media first came into the country, its mainstay was the FMCG sector. Today, a big show on Indian television has eight sponsors and sadly none of them are FMCG products."

 

 

Quoting AdEx figures, he said that in 1999, advertising spend from the FMCG sector was 76 per cent, but in 2004 it had reduced to 50 per cent. "This sector has been registering a compound growth of 2? per cent in the last three-four years. The sector has stagnated in the last few years but thankfully it is slowly resurrecting, having registered a growth of six per cent last year. Hopefully this growth will continue in the coming years," he said.

According to Balsara, the three reasons why the FMCG sector had stagnated were:

The stagnation had something to do with the corporate ownership structure. Most of them are publicly listed and hence their main focus is on quarterly results. Hence the focus shifted from brand building to sales.

Marketing professionals therefore began to lose confidence in above the line brand building.

This stagnation also came about because management became highly risk averse. They didn't spend money on innovations. Risk averse also meant that no new products were being launched unless they were backed by clinching data from research.

Gupta assured Balsara that the worst was over as far as the FMCG sector was concerned. Citing some consumer trends, he said that today's India was getting younger since 70 per cent of its population was under 35 years of age and the figure will reduce year on year.

"The need for innovations in the FMCG sector will be stronger in the coming years. The challenges that the sector will face will be scarcity of talent in brand management. There will be a surge in demand for brand consultants and strategic account planners. The mantra is to survive is to promise what you will deliver and deliver what you promised," Gupta emphasized.

Ranganathan said that some of the factors that will drive volume growth in the FMCG sector will be innovations, increasing value for money and the increase in the per capita income of Indians. "There is a correlation between penetration levels of various FMCG products and the per capita income of the country. There is a great opportunity for low penetration categories of FMCG products if marketers offer bite size products to the consumers," he said.

"Today the consumer is looking at various ways to look good and feel good. It is a great opportunity to drive per capita consumption in this sector," he concluded.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/19/social.jpg?itok=xs9epXAt
Social Kinnect Appoints Bharat Suri as the Vice President of Operations

Social Kinnect, one of the largest independent Digital Marketing agencies in India, recently announced the appointment of Bharat Suri as Vice President of Operations.

MAM Media and Advertising Digital Agencies
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/19/urrency.jpg?itok=lZk2Pj7b
The Currency of Experience Has Global Value

Research from YouGov on behalf of Priority Pass™, the world’s leading and original airport experiences program, has found that the trend for experiences over material goods is global.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/19/WATConsult.jpg?itok=Oiz6xb6y
WATConsult becomes the 'Highest Awarded Indian Agency' at Epica Awards with 2 Golds and 1 Silver Metal

WATConsult, the digital and social media agency from Dentsu Aegis Network led the Indian tally at Epica Awards by winning 3 out of the 9 awards won by Indian agencies in total. WATConsult’s #PowerlessQueen bagged 2 Golds and 1 Silver metal, making it the best performing and highest awarded Indian...

MAM Media and Advertising Media Agencies
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/19/sabbas.jpg?itok=CK3avJj0
Sabbas Joseph to address BeaWorld - international festival of events in Portugal

Sabbas Joseph, Co- Founder & Director, Wizcraft International Entertainment Pvt Ltd, will be addressing the BeaWorld Festival of Events and Creativity in Coimbra, Portugal later this week, becoming the first Indian entrepreneur to take stage at this premium global event industry convention and...

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/16/rs.jpg?itok=npu6o4K2
‘Beautiful by Nature’: JOYquestions Stereotypes in a Brand New Campaign with Mouni Roy

People are conditioned into following certain pre-defined beauty standards of how a woman should look, behave and carry herself around. Physical appearance has always been the yardstick to measure a woman’s beauty

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/16/stdoud.jpg?itok=Ssn_LDuQ
India gets their first-ever international standard Motion Capture Lab

An institution in the entertainment & storytelling sector, Famous Studios once again proves its leadership position.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/hdfc.jpg?itok=3YRjH9QH
HDFC Life chooses Music to connect with young millennials

HDFC Life Insurance Company, one of India’s largest private life insurers, launched the second edition of its successful campaign #YoungandResponsible on 15 November 2018.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/droom.jpg?itok=bhQd3GhR
Droom ramps up its marketing momentum with the launch of an integrated radio/cinema campaign in major cities across India!

Droom, India’s largest and pioneering online automobile transactional platform, has today announced the rollout of an integrated marketing campaign.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/Untitled-1.jpg?itok=oDiO2ebf
Realme introduces its new visual identity system and logo

Realme, the smartphone brand that specializes in providing high quality products for youth, launched its fully upgraded Brand Visual Identity system and Logo to provide a new visual experience and emotional connection with young consumers.

MAM Marketing MAM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories