FMCG and Retail Brands in India Focus on Premium Products Despite Inflation
In New Delhi, several leading FMCG and retail brands are focusing on premiumization strategies to attract discerning customers, despite ongoing inflation and slow demand. Companies are refining their approaches with adaptive pricing and improved packaging. As purchasing power in India grows, brands like Archies and Ghodawat Consumer Ltd. are enhancing their premium appeal through innovative designs and digital marketing.
Varun Moolchandani of Archies highlights their focus on inventive product design and customer-centric strategies. Salloni Ghodawat emphasizes digital-first marketing to connect with premium customers. Sudhir Sitapati of Godrej Consumer Products notes the success of products like Godrej Aer Matic in the premium segment.
Despite inflation affecting purchasing power, premium categories have seen significant growth in transaction value and revenue. A Nielson IQ report shows that premium FMCG products are outperforming non-premium ones, with the premium+ segment accounting for 27% of total FMCG sales and 42% of sector value growth.
Industry leaders like Disha Shah and Gaurav Bhatia recognize that while inflation impacts consumer behavior, the demand for premium products remains strong, driven by lifestyle and health-conscious consumers. The Ministry of Finance notes improvements in rural demand, reflecting increased FMCG sales.
Doubts Revealed
FMCG -: FMCG stands for Fast-Moving Consumer Goods. These are products that sell quickly at a relatively low cost, like snacks, toiletries, and cleaning products.
Inflation -: Inflation is when the prices of goods and services go up over time, making things more expensive to buy.
Premiumization -: Premiumization is when companies make their products seem more special or high-quality, often to sell them at higher prices.
Archies -: Archies is a popular Indian brand known for selling greeting cards, gifts, and other special occasion items.
Ghodawat Consumer Ltd. -: Ghodawat Consumer Ltd. is an Indian company that makes and sells various consumer products like food items and personal care products.
Nielson IQ report -: Nielson IQ is a company that collects and analyzes data about what people buy. Their reports help businesses understand market trends.
