FMCG & PET Packaging -The Emerging Solution for India Specific
Common Man Mass Market
Every
household in the developed world would have one or more FMCG in PET
containers ranging from water, soft drinks, liquid disinfectants,
to personal and health care products.
| “We
have just scratched the surface of FMCG in India. And the next
big round will not happen by doing what we do more efficiently,
but by breaking the paradigm. The consumer now has a choice, and
is extremely capable of making price-performance trade-offs. Therefore,
a combination of education, access and affordability should be
the basic approach.”"How do we increase penetration
and usage first, and then create new categories? Creating new
categories is very difficult. I think marketers have enough problems
facing them already. Instead, we have to focus on increasing penetration
and usage by orders of magnitude." C. K. Prahalad, Nov 2002:
on Real Challenges facing India's FMCG |
Current Scenario
The 200 million households accommodating one billion+
consuming units, income levels and India typical complex diversity
determine the consumption pattern. The myth of the great Indian middle
class, the large mass of homogeneous consumers with growing income
were supposed to form the mainstay of consumer India has been exploded.
What we have is the heterogeneous mass existing between the rich class
and very poor destitutes. This mass according to the NCEAR data (Fig.
1), is 3/4th of the one billion consumer base of India.FMCG growth
has been shrinking despite of such a large mass of consuming units.
Durables like white goods, PCs, automobiles, mobile phones etc. are
on the fast growth track, FMCG is not. All this is making marketers
wonder who moved my cheese? Product promotions, new categories, power
branding, gender differentiation, kid segmentation - all these tools
have sort of ceased to add to growth any more. The force to keep the
growth engine moving is mass multiplied by acceleration. The Indian
growth engine is driven by the force from a small mass i.e. 'class'
moving at high acceleration and large mass moving at slow acceleration
i.e. morphing change. The current state of FMCG is stuck with...
....contd.
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