But it's the food segment which makes up nearly 45 percent of the overall FMCG market and the traditional big brands ruling the space are ITC, Unilever, Dabur, Patanjali and Britannia.
Because of this, it is a common misconception that … “Over time, the group has invested in improving its manufacturing and packaging infrastructure to bring itself on par with well-established competitors,” he says.According to him, the group has clearly focused itself on the mass market, with Patanjali Group’s products becoming a “go-to” for customers who are more price-sensitive than brand-loyal. For this reason, they also normally have a short shelf life. All these brands are particular about quality control and deploy controllers in the factories to ensure that products are made to exact specifications.Devangshu Dutta, Founder of Third Eyesight, says that all these brands can learn from Patanjali. Her USP: the company works with a manufacturer who uses natural ingredients and there are no plastic beads in the product. In fact, Fit & Glow's WOW is the number one brand in the shampoo category on the e-commerce site.MCaffeine, which was born in 2016, has employed pricing and product design to carve a niche for itself. After working with MuSigma and a global retailer in the US, Vikas Lachhwani returned to India and began discussions with Tarun Sharma to launch a skincare product that used caffeine.Ava, a Bengaluru-based skin and wellness product, sells on BigBasket.com and to B2B customers.
According to GlobalData’s Q1 2017 consumer survey, global consumers are especially bullish about their preference for ingredients like natural and essential oils for personal care products, and vinegar for household products. And rightly so.
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Cigarette sales are likely to decline by 30 per cent YoY due to volume decline of 40 per cent YoY, as production resumed only in mid-May. They are looking at launching 40 SKUs by end-2017. MCaffeine, which gets its products made through contract manufacturing, sells online only, and Vikas and Tarun are looking at critical scale before taking their product offline.“We have grown so fast in three years of being operational that we want a strategic investor to be on board and not take money just for the sake of it,” says Manish, Co-founder of Fit & Glow.“A lot of work has gone into creating the design, the taste and the distribution network,” says Maulik.Besides, while these new companies many not be profitable at the net level yet as most of them are barely three years old, they nevertheless are generating enough cash to sustain operations. His brand called Mojo is now a Rs 2-crore business and has been operational since last year. Impact of the lockdown of manufacturing facilities, cigarette inventory levels, guidance on price and volume, and alternate distribution channels are among the key monitorables Read more about ITC Q1 preview: FMCG segment to cushion overall nos; PAT may dip 30% YoY on Business Standard. Even Epigamia, launched by Drums Food, had a similar start, but is a sizeable business today.
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