Lijo Varghese Ittoop

#PureLeaf's Here’s a story about developing a new FMCG brand: --- In a #bustling city filled with established brands and fierce competition, a small but passionate team set out to create something new in the #FMCG sector. Their goal was to develop a #brand that stood out not just for its products but for its commitment to #sustainability and #innovation. The #journey began with deep market research. The team discovered that consumers were increasingly looking for products that aligned with their values, particularly in the areas of #environmental responsibility and health. With this insight, they decided to focus on developing a line of #eco-friendly #personal care products. The next step was to #craft a brand identity that resonated with these values. They named their brand "PureLeaf," symbolizing #natural ingredients and environmental stewardship. The team worked tirelessly to #design packaging made from recycled materials and to ensure that every product formulation was free from #harmful chemicals. PureLeaf’s initial product line included a range of items such as #shampoos, body washes, and lotions. Each product was designed to be both effective and #gentle on the environment. They also implemented a #zero-waste policy in their manufacturing process, further strengthening their commitment to sustainability. To introduce PureLeaf to the market, the team created a #robust marketing strategy. They leveraged #social media, collaborated with eco-conscious influencers, and engaged in community events to build brand #awareness. Their message was clear: PureLeaf was not just another personal care brand; it was a movement toward a more sustainable future. The #launch was met with enthusiasm. Consumers appreciated the transparency and genuine effort behind PureLeaf. #Sales exceeded expectations, and the brand quickly gained traction. #Feedback from customers highlighted the effectiveness of the products and the positive impact of the sustainable practices. As #PureLeaf grew, the team continued to innovate. They expanded their product range and introduced new initiatives, such as a #refill program to reduce plastic waste. The brand’s success was driven by its unwavering commitment to its core values and its ability to adapt to evolving consumer preferences. In the end, PureLeaf wasn’t just a new brand in the #FMCG market; it was a testament to what can be achieved when a company prioritizes both people and the #planet. #fmcg #fmcgbrand #fmcgsales #branddevelopment #eco-friendly #NHBC

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Hate to admit this but looks like the term 'branded' is losing its luster. Consumer behavior is tilting more towards 'platform' than 'brand'. Examples 'Bought a product that is rated 4.4* on Amazon/Flipkart and is reviewed by xxx users' 'Bought something that was marked Amazon's choice' 'Went to a restaurant that is rated 4.2* by xxx people on Zomato' (Exception to this 1. Ultra-luxury space where there is bragging rights. 2. High ticket size products where post-purchase service matters.) What does this mean? 1. Product/service quality will become more important than marketing (product review will be more important than how premium the packaging/marketing collateral is). 2. Product/Design Innovation will differentiate the men from the boys. 3. Successful companies will either be in the mass or in the ultra-luxury segments. Segments like Premium or Mass-Premium will cease to exist (unless there is some product/design innovation). 4. Platforms will hold more power than Brand. I would argue that in the future only those companies will be successful who understand platforms, P&L, performance marketing & trend spotting better. But why can't they become a platform in themselves (D2C)? 1. The ever increasing CAC + cost of D2C. 2. Only a few channels will capture the mind space of consumers (The way only a few apps made it to the phones of consumers. In the same way only a few eCommerce channels will make it to the minds of consumers) #ecommerce #D2C #brand #product #marketing

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And now for the fourth report on the Indian smartphone market by research agency #IDC for Q2 2024. 1. The market shipped 35 million smartphones, with a growth of 3.2% YoY, the fourth consecutive quarter of YoY shipment growth. The figure is close to some other agencies. 2. India’s 5G smartphone market share increased to 77% or 27 million in 2Q24. This is more or less in line with other agencies. 2. The average selling price of 5G devices declined by 22% to US$293. 3. Point no. 2 and 3 combined brought down the ASP to US$ 248 a decline of 5.6% QoQ. YoY it increased by a mere 2.8% with the impact of premiumisation. 4. #Xiaomi’s Redmi 13C, OPPO’s F25 Pro, #realme’ s 12x, Xiaomi’s Redmi 12 and realme’ s C65, were the highest shipped 5G models. 5. The brandwise share is as attached with only #Samsung and #OnePlus showing a decline YoY. OnePlus is understandable with the boycott they faced but for Samsung it is reason to worry as they have also lost share in the >US$ 600 segment. 6. Overall, #Vivo continued to lead for the second consecutive quarter, with multiple launches across price segments through the Y series, mid-premium V series and flagship X Fold 3 Pro. If one goes by combined share Vivo+#iQoo and Xiaomi+#Poco have the same market share at 19.2% making them both No. 1 in volume shipments. 6. Shipments to online channels grew by 8% YoY, and its share increased to 50% in 2Q24 compared to 47% in 2Q23. I had said this as well 7. #Motorola entered the top five vendor list in the online channel, at the fourth slot, while Vivo climbed to the second slot, led by its T series models. Due to severe heatwave conditions in major parts of India, offline channel shipments declined by 2% YoY in 2Q24. 8. Motorola registered the highest growth backed by the product portfolio across price segments, while #Nothing witnessed the second-highest growth amongst all other brands. 9. Both #Tecno and #Infinix were in the top 10 2 quarters back. Infinix slipped out of the list in the last quarter and now Tecno has been replaced by iQoo. #Transsion as I had mentioned was bound to lose to a resurgent Xiaomi/Poco combination as it tried to move up the price ladder. 10. The premiumization trend in the smartphone market, led by Apple and Samsung, coupled with rising device costs is motivating China-based brands to expand beyond the mass segment. vivo India Samsung India vivo India realme India OPPO India apple India Motorola Mobility India Ltd POCO India OnePlus India OPIndia Transsion India

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Consumer Loyalty Programs / Customer Loyalty : I was in discussion with 'Loyalty' / 'Engagement' driving professional third party agency a while ago. I am exposed & driving 'Loyalty' / 'Engagement' programs since ages for brands like LG, Toshiba, Hindware & Michelin as a Marketing custodian. But had never delved deep into 'Loyalty' as a word / expression / emotion. During the discussion, I asked a very basic question to myself and the agency - "What is 'Loyalty' ?".....And I reached to an answer myself.... The answer I gave is "Loyalty is 'UNCONDITIONAL' 'ONE WAY' 'LOVE' !"... Agree ? Thoughts please...... #sales #marketing #brand #business #categorymanagement #productplanning #recruitment #manpower #humanresource #staffing #search #selection #consultant #team #culture #jobs #jobsearch #OpenToWork #India #recruitmentprofessionals #headhunter

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Point to ponder Data range Q1 2018 to Q2 2024 as per #Counterpoint for the top 5 smartphone brands in India. 1. The highest ever share at which a brand has been No. 1 is 31% by #xiaomi in Q1 2018 and Q1 2020. 2. The lowest share at which a brand has been No. 1 is again Xiaomi at 17% in Q3 2023. 3. The biggest gap between Brand No. 1 and 2 has been 14% (Xiaomi and #Vivo) in Q1 2020. 4. The smallest gap between Brand No. 1 and 2 has been 0 (Xiaomi and #Samsung) in Q2 2018 and Q3 2023 and Vivo and Xiaomi in Q1 2024 5. The highest contribution of the top 5 brands has been 91.6% in Q2 2020. 6. The lowest contribution of the top 5 brands has been 72% in Q4 2018. 7. It took Xiaomi 11 quarters to reach a double digit market share in India. 8. It is not that Xiaomi had a clean run as the No. 1 for 20 quarters as is said. Samsung shared the top slot with them in Q2 2018 and beat them in Q3 2020. 9. The brand with the highest swing in market share has been Xiaomi. 31% as the highest and 16% as lowest. 10. Vivo is the only brand except Xiaomi and Samsung that has crossed 20% market share. 11. Q2 2022 was unique in that the top 4 brands were spaced out by 1% each. Xiaomi at 19%, Samsung at 18%, Vivo at 17% and #REALME at 16%. 12. Q2 2024 was again unique that the top 3 brands were separated by a gap of just o.8%. 18.9% Xiaomi, 18.8% Vivo and 18.1% Samsung. 13. Actually Samsung has not been a clear No. 1 brand as it is assumed in 2023 in all quarters. There was a tie between Vivo and Samsung in Q3 2024, and between Vivo and Xiaomi in Q1 2024. 14. The highest share achieved by #Oppo is 11.4% in Q2 2024. 15. The highest share achieved by #Realme is 16% in Q1 2022. 16. The only brand which went below 10% share is 9% in case of Oppo in Q1 2022. 17. The top 5 brands have remain unchanged for 26 quarters! vivo India Samsung India Xiaomi India realme India OPPO India

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I always see our customers being divided into two teams, the online and offline shoppers. And that's why, we at Vanity Wagon (NAPSA Pvt. Ltd) are making sure to be available everywhere, build an ecosystem, offering both online and offline experiences to ensure one can shop what they love without any hassle. Here’s a peek into what both the experiences offer:  1. Online shopping:  Convenience: Online shopping wins hands down in this aspect. Browse anytime, anywhere, in your PJs – no traffic,no store hours! Selection: Feeling overwhelmed by limited choices? Online stores have a global beauty buffet waiting for you. Price Savvy: The web makes comparing prices across stores a breeze, potentially saving you big bucks. Personalization: Online retailers can give you product recommendations based on your past purchases, like a virtual beauty bestie! 2. Offline Shopping: Social Experience: Offline shopping offers a social experience that online shopping can't replicate. For some consumers, shopping is not just about buying products but also about the experience of browsing with friends or family, trying on products, and getting advice from friendly staff. Instant Gratification: Skip the wait! Offline stores let you walk out with your purchase right away, no need to wait for shipping delays. Easy Returns: Returning online orders can sometimes be a chore. Offline stores? Simply walk in, explain the issue, and swap it out for something you love! Events and Launches: We regularly host exciting in-store events and launch parties, creating a buzz around new clean beauty products. These events offer the chance to interact with the products firsthand, meet brand representatives, and learn more about the latest innovations, all with the guidance of our knowledgeable staff. Temptation Through Sampling : We believe in the power of trying before you buy. Our staff is there to help you navigate our selection of samples, allowing you to experience the texture, fragrance, or application of new clean products before you commit. They can answer any questions you have and ensure you find the perfect fit for your routine. Knowledgeable Staff: Ever have a question about a product? Friendly and knowledgeable staff are there to help! They can provide information, recommendations, and even do demonstrations to help you discover the perfect product for your needs. Eye-Catching Displays: Imagine walking in and being greeted by a stunning display showcasing the latest must-have items. This is the power of in-store merchandising! Attractive displays with clear signage draw your attention to new products. Ultimately, the choice depends on your personal needs and shopping style. So, whether you're team online, team offline, or both.Vanity Wagon is here to help you find the most effective clean beauty products. Comment down below and share-  Are you Team Online, Team Offline, or a mix of both? #cleanbeauty #onlineshopping #nainaruhail #vanitywagon #ecommerce

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🌟𝗖𝗲𝗹𝗲𝗯𝗿𝗮𝘁𝗶𝗻𝗴 𝗡𝗛𝗕𝗖'𝘀 𝗦𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽𝘀 𝗶𝗻 𝗙𝗠𝗖𝗚 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆🚀 At New Horizon Business Consultants (www.nhbconsultants.com), we are the leading Sales and Marketing Consultancy services provider in the FMCG industry across PAN-India. Our strong distribution networks span GT, MT, HORECA, E-commerce, and institutional sales (CSD, CPC, IRCTC), as well as international markets. #MauriHerbal 💄 At Mauri, we pioneered the innovative concept of #BA outlets, transforming the beauty retail landscape. By emphasizing personal #consultation and educating consumers on ayurvedic wellness, we established Mauri as a trusted name in natural beauty. #BUMSUIT Baby Pants 👶 With BUM SUIT, we managed the entire process from ideation to market launch, introducing unique concepts like #mosquito #repellent diapers and #3Dpackaging, setting Bum Suit Baby Pants apart in the baby care segment. #TGBBakery 🍞 Partnering with TGB, we executed a successful launch in Mumbai, achieving over 1 #crore in sales within four months. Regular team training and sales conferences boosted morale and enhanced local market understanding, fostering customer loyalty. #DavatBeverages 🥤 For Davat, we orchestrated a grand launch and strategically positioned products in high-profile outlets. Our comprehensive approach, from product sampling to eye-catching displays, led to rapid retail success. #JanakPerfumers 🌸 We guided Janak's expansion into cities like Mumbai and Pune, employing local market strategies and optimizing product placement, resulting in sustained growth and a broader business footprint. #GangotriCamphor 💫 NHBC organized a grand launch for Gangotri, introducing new product ranges and innovative packaging that distinguished the brand in a competitive market. #Funtrip 🥫 For Funtrip, we focused on building the brand’s network, successfully recruiting and training teams to drive growth. Across these collaborations, NHBC’s holistic approach addressed every aspect of #businessgrowth: Awareness: Launching and sampling campaigns Visibility: Strategic placement in prominent outlets Attraction: Designing compelling packaging and displays Recruitment & Training: Developing effective teams Distribution: Partnering with reliable channels These #successstories highlight NHBC’s dedication to delivering measurable results and fostering brands that make a lasting impact. Together, we've achieved remarkable milestones—and we’re just getting started! 🚀 #FMCG #SalesConsultancy #MarketingStrategy #BrandGrowth #DistributionNetwork #RetailSuccess #BusinessDevelopment #ConsultingExcellence #MarketResearch #ConsumerEngagement #BrandAwareness #StrategicPartnerships #ProductLaunch #Innovation #TeamTraining #GrowthStrategy #RetailMarketing #Ecommerce #InstitutionalSales #InternationalMarkets #CustomerLoyalty #BrandDevelopment

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#Samawa e-commerce #Dubaioudh B2B portal and holidays sales!!! Black Friday is particularly important for e-commerce businesses due to several key factors: 1. High Sales Volume Black Friday marks the start of the holiday shopping season, where consumers actively look for deals. E-commerce platforms see a surge in traffic and transactions, with many customers spending more than usual due to significant discounts. 2. Customer Acquisition With increased online traffic, e-commerce businesses can attract new customers through enticing promotions. Many first-time buyers discover brands during Black Friday, offering businesses an opportunity to convert them into loyal customers through follow-up strategies. 3. Increased Revenue The combination of high demand and volume-driven sales allows e-commerce businesses to significantly boost their revenue in a short period. Even with lower profit margins per item, the overall sales volume can result in substantial earnings. 4. Clearing Inventory Black Friday is a chance to clear out old inventory to make room for new products, especially as businesses prepare for the holiday season. Aggressive discounts help move slow-selling items. 5. Brand Visibility Participating in Black Friday promotions enhances brand visibility. Advertising campaigns and social media buzz help businesses reach a broader audience, strengthening their market presence. 6. Competitive Advantage E-commerce businesses use Black Friday to outpace competitors. Offering better deals, faster shipping, or exclusive online-only offers can attract customers from rival stores. 7. Testing Strategies Black Friday is an excellent time to test marketing strategies, new product launches, and website performance under high traffic. Insights gained can inform future campaigns. 8. Global Reach Unlike traditional retail, e-commerce businesses can tap into international markets during Black Friday, making it a global revenue-generating event. In summary, Black Friday is a critical time for e-commerce businesses to capitalize on increased consumer spending, attract new customers, and build momentum for the rest of the holiday season.

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#Oppo seems to be in the news for the right reasons since June. This is after Oppo's market share in India declined to 10.1% in the March 2024 quarter from 12% a year ago. AI is supposed to be one of the drivers for growth in the Indian smartphone industry after 5G. In India, 1.2 million AI-capable devices were shipped in the March quarter. According to market tracker Canalys, this number is expected to reach 4-5 million units by December. Here’s what Oppo has been doing to regain lost ground. 1. #Samsung took the first mover advantage in the beginning of 2024 with the AI functionality on the #SamsungS24. AI was presumed to be a functionality in the premium segment till this month when Oppo announced that it would be introducing GenAI features across its entire range of smartphones including the entry segment. Of course, some features that require high-end hardware capability will not be available to the entry segment. It also said it will roll out over 100 Generative AI capabilities to its phones in 2024. The Chinese company has collaborated with partners like Google, Microsoft, and MediaTek to power its AI-enabled smartphones. One thing Oppo has always been strong in is its R&D capability. They have a dedicated team for AI at their R&D center and have filed over 5,600 AI-related patents over the past decade. The company would be hyper-localizing some AI features for the Indian market, specifically those related to multimedia use cases. e.g. photo and video editing, customized recording summaries with Hindi support with more localized cases. 2. Oppo expanded its premium Reno series on July 12 with the launch of Reno 12 smartphones. With the AI support, the phone seems nicely priced and should help Oppo do well in the mid-premium segment. The Reno 12 series, the company claims, has the highest number of AI features in its price category. The coverages I have read seem to show the device in a positive light in terms of price vis a vis the features. 3. Keeping the long replacement cycle and long battery life requirement in mind, Oppo introduced the #F27Pro with a focus on durability and security. A rock solid “unbreakable” phone with dust proofing and water resistance. The market reports in terms of the phone's acceptance by the channel and the customers are very good. 4. The sign-off of a multi-year global patent cross license agreement between Oppo and Ericsson covering patents essential to cellular technologies, including 5G standards. In addition to a cross-license, OPPO and Ericsson will conduct business cooperation on many projects related to 5G, including device testing, customer engagements, and marketing activities. 5. Oppo India joining hands with AICTE, Ministry of education, Government of India for the Green Internship Programme which will contribute to the achievement of the UN Sustainable Development Goals. OPPO India is the first electronics manufacturing company to offer internships through AICTE. OPPO India Samsung India

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Dubai Hills Mall hummed with activity. Dubai’s population seems to grow larger after every summer rebound. A walk through a mall can tell a lot about the sentiment of consumers. Group sizes, walking speed, number of shopping bags – all are check points of urban retail health. Observing restaurants can also be beneficial – anecdotal insights that help form a larger perspective of the industry. There were definite trends that I observed – albeit a snapshot of a single Sunday afternoon. The emptier places were the fast casual concepts, the burgers, the fries, the shakes and the American diners. A regional sentiment of Western fatigue? A downgrading of premium fast food, reflecting a cost-conscious consumer? Perhaps. Or maybe just the wrong meal period to observe.   The busy places were venues focusing on cuisine closer to the region. Families dominated Turkish, Levantine and Mediterranean restaurants. Even Georgian cuisine was pumping out the Khachapuri. Family values are still strong in the region – time spent round a table is a worthwhile investment. Couples and friends filled every coffee shop available – flat whites are being replaced with more nuanced brews. High quality meaningful interactions proving more valuable than passive low quality digital diversions. Make of these Sunday afternoon observations what you will – but what was most encouraging to see was the level of engagement. People talking to each other. Laughing, sharing their stories and lives with friends and loved ones. That’s what this industry does best – facilitates human connection. As Cal Newport says in his book Digital Minimalism “Our sociality is simply too complex to be outsourced to a social network or reduced to comments and emojis”  Best to leave it to the experts. Leave a comment or emoji below if you agree.

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Point to ponder The start of Q2 2024, I feel has the potential to negatively impact the sales of Smartphones if not for the whole year, at least for Q2. And why do I say this? The temperatures around the country especially in West, South, and East India have shot up. This as per reports has led to a 2-3X demand for air conditioners, even in markets where demand has been traditionally low. The temperatures in North have also started going up and the high demand should therefore continue for the next 1-2 months at least . As per ET, Retail chains are witnessing a surge in sales of ACs: Girias, which operates 150 stores in South used to sell 500-600 ACs a day during peak summer. Now, that number has skyrocketed to 1,500 units a day. Great Eastern Retail, with 51 stores, sold about 1,200 units a day during last year’s heat wave in West Bengal and Odisha. This year, they’ve surpassed that figure, selling 1,800 units a day. Vijay Sales, with 135 stores across Maharashtra, Gujarat, Delhi-NCR, and Andhra Pradesh, is now selling almost 4,000 units a day, compared to about 2,500 last year. Air cooler sales have spiked. The sales of fridges are also expected to zoom. As per industry experts, this year may very well be one of the best summers in the last 10-15 years for consumer durables with the traction coming from the mass to the premium segments. ACs and fridges are no more discretionary products but a necessity. All of this is fine and a good sign. However, it brings with it the issue of disposable income and in that context the priorities in spending in Q2 as both the categories do take away a major part of the disposable income, especially AC’s the requirements for which may be in multiple numbers in a household. Would the decrease in disposable income impact the sales of Smartphones, especially in the mid-premium (Rs. 34000-Rs. 51000) and premium (Rs. 34000-Rs. 51000) is a question. The impact could be by way of a compromise by the majority of end customers to stay in the Basic(Rs. 8500-Rs. 17000) and entry premium(Rs. 17000-Rs. 34000) segment which are also expected to drive the democratization of 5G devices Or a delay in their purchases of mid-premium and premium devices to Q3, just when the festival season starts with the availability of more use case AI-powered devices and the expectation of festival discounts and offers. Are we looking at the momentum of Q1 2024 breaking in Q2? Are we looking at retail chains making major gains in Q2 and going forward in 2024? #KoreMobile

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Sharing an important point for a BRAND STRATEGY on which I had written before, What’s your Brand’s CORE PURPOSE ? Peter Drucker , voted as the Management thinker of the 21st century , once said “ THE CUSTOMER RARELY BUYS what the business thinks it sells him” . Do All Brands really know what they are selling to the consumer (or the customer in case of a B2B ? ) And to do this , the Brand custodians must understand it’s CORE PURPOSE . some examples ( not the co. version ) : PAMPERS exists to help mothers with their babies all round development , APPLE enables it’s users with creativity and self - expression , JOHN DEERE is about making a difference to farmers lives , MASTERCARD makes lives simpler and more flexible , DIESEL exists to ensure endless imagination and possibilities in style , RED BULL exists to energize the world . And to understand the Brand core purpose , it’s important to understand the CORE DRIVER behind the consumer / customer’s behaviour. Therefore , understanding the core driver of the customer’s behaviour leads to gaining deep insights leading to defining the Brand CORE PURPOSE

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While scaling offline distribution in GT/MT, founders should never forget the interdependence of demand and supply A brand irrespective of how good it is, won’t sell if consumers don’t find it at their preferred point of purchase And irrespective of how strong its distribution is and how widely available it is, consumers won’t buy it if the product- price-brand proposition isn’t strong enough It takes both demand and supply to fire at the same time to achieve sales There are 2 problems that can happen if brands aren’t able to maintain the balance and why sales don’t scale up a) Poor Distribution : While the product proposition is strong and the brand creates demand, but the product wasn’t available and visible in places where consumers were buying the category. This renders marketing spends useless. Distribution and visibility problems will have to be solved by sales and trade marketing teams b) Poor Demand/Pull: This is the more common and bigger problem for new brands. The products are available and visible in stores, but the product price brand proposition isn’t great (could be lack of PPCMF or brand awareness problem ) and offtakes are low. This triggers a vicious cycle. Retailers hate slow moving items with poor stock turnover. So brands that don’t sell much lose shelf space and even gets delisted from the shop. In this sales, field sales team can’t do much to influence or increase numbers. Demand problems have to be solved by product and brand marketing teams So, any brand looking to scale offline in General Trade or Modern Trade have to balance supply and demand and ensure both grow in tandem. Second chances also don’t come easy here And that is what makes it very difficult. The consumer tech equivalent of this is the difficulty in scaling 2 sided marketplaces

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I was reading a recent interview with the CEO of #Realme Sky Li in which he mentioned a target of a 10% increase in sales in India this year based on the following strategy 1. regular launches of new products across different price segments to cater to diverse consumer needs. a. strategic focus on the mid high-end segment b. high-end innovations to mid-range handsets c. emphasizing design and performance for budget phones 2. a 10% increase in sales in India this year The strategy looks great as it practically covers all the bases. If they handle things well they can do it. Who can forget the entry of the brand? It was the fastest to hit the 100 million mark globally in 36 months. In comparison, #Xiaomi took 41 months, #vivo 44 months, #Oppo 55 months, and #Samsung 73 months. Even a brand like #Apple 48 months. While one can say that the market size when these brands, especially Samsung and Apple entered the market was much smaller and hence they took a longer time one has also got to appreciate that Realme entered a bigger but highly competitive market with the top 6 brands having a 74% share globally. A presence across different price segments is similar to Samsung's strategy, which should also work for them. Just don’t go above the middle of the mid-premium segment or the Rs. 42500 price point. Maybe 1 SKU for positioning. I want to share my thoughts on what could go wrong if they increase the number of SKUs to too many. 1. One of the reasons for Xiaomi’s decline in 2022 was the wide range of products. Be present across but don’t have too many SKUs. 2. There is an apparent weakness regarding their shipment and sales planning. In the last 9 quarters including Q1 2024, their shipment share has varied from 8% to 16%. In the case of Xiaomi when they had a large range in 2022 the year they slipped, their share varied between 16% and 23%. They corrected their strategy by reducing the SKUs and in 2023 the variation came down to just 4% (between 15% and 19%). Xiaomi was able to make a strong comeback. Too many SKUs can only make the existing supply chain issue worse. Last but not the least. * Don’t let someone else run the business for you. * Don’t put all your eggs in one basket. * Leave it to the Indian leadership team to take decisions.

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One needs to understand  #dealer dilemma. #Home and #kitchen stores need to keep a spectrum of category ranging from toothpick to Water drums. Their category spectrum is as broad as 5000 categories 2. In each category there are atleast 3-4 sub categories : Say for #lunchbox they need t0 keep Glass , #stainlesssteel ,  #plastic,   #microwaveble,  #pufinsulated etc. 3. In each sub category they may have a #combo 2,3,4 sets. 4. In each combination they need to keep at least 2 top brands, 1 non branded. Beyond all this the W.C. to margin ratio varies for each store. Cherry to the cake is  #Online steep discounts. Consumer check the products  #online and show the #countersales person its #sellingprice Online - Many a times the buyer is amazed : that his store purchase price is more than the online selling price. Above all, #manpower issue is a universal fact now. With all this if a brand is getting a 1 sq.mt rack space in Market - its worth it! All the branding, marketing, packaging will collapse if the counter sales man just says one line: "Madam, yeah jyada chalta nahin hai! Aap yeah lijiye .." the later #brand is #dead. Thank you to all the #dealers, #retailers, #superstores, #wholesellers who have given #PddFalcon their VALUABLE RACK SPACE.

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Innovation is a driver of growth, but it must remain consistent with the brand values to maintain its credibility. For a brand like Gopal Snacks, innovation is not just about introducing new products but also about improving the customer value proposition that is consistent with the fundamental values of an organisation. This adaptability means the brand can be developed with new influences and yet retain the core values that underpin customer trust. The strong link between innovation and brand values needs to be supported by a progressive approach to development and promotion. In this way, we can implement change at each stage of the product development cycle while staying true to the brand’s core values and vision. This strategic alignment helps brands stand out in a crowded marketplace, reinforcing their reputation as a brand that innovates with purpose and integrity. #GopalSnacks #GopalNamkeen #Innovation #Values

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Services business a hard sell for FMCG companies focused on products Excellent article by Dr. Kiran Somvanshi in Economic times today with various examples of #HUL #Jyothylabs #marico #itc and the challenges associated with product focused FMCG companies Having been part of the FMCG business for quite a long time and part of services business too and having built some of them, the solution lies somewhere in between. Few reasons why they get stopped or hived off are as below. 1️⃣ Being capital intensive, human intensive, the service oriented business come with low volumes and low revenues and high margins starts kicking at a later stage which needs patience which large companies don't have. Also such businesses gets hived off or gets closed with change in the leadership. Need to have a long term perspective or just don't start. 2️⃣ The business looks miniscule and will remain small for a long time and they should be okay with that as long it is generating cash flow and making profits down the line as they are enabling recruitment of new consumers to the BRAND What companies can do and should do? 👉 Keep the costs low with a few own model and rest through franchisees 👉 Operate the entire business through third parties, right from sourcing to setting up and running with minimal employees from the parent organization and rest through third party associates but with control and review from the parent company. 👉 Irrespective of the size of the business, pay attention and support the service business vertical as they are adding new consumers to the fold. 👉 acquire service businesses in FMCG business but keep it separate #fmcgbusiness #econonmictimes #product #d2c #ceo #founders #fmcgstartups #servicesstartups #vcs #fmcgmanagement

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The transition from 3G to 4G was fast and brought about the separation of the wheat from the chaff with the Indian brands taking a big hit and the Chinese brands gaining. What impacted the Indian brands was not just the sales but the very high cost of liquidating their 3G inventory, giving the Chinese brands the space to grow.The same may not hold good for the transition from 4G to 5G devices which has seen a steady growth with most brands aligned. One thing which could create some turmoil in the industry is AI, if one goes by what is happening in the Gulf. Retail prices on PC's are seeing some of the biggest drops in recent times, with discounts extending to 30-40 per cent on even some of the latest models. On some PC brands, there are straight 50 per cent price slashes. While some of the heavy discounting has to do with summer promotions, retailers are also clearing their inventory before the high-profile AI-enabled devices come to market in the second-half of the year. Even smartphones released this year have seen price cuts, of between 10-20 per cent. Well Gulf is a much higher ASP market, based on the same logic there exists a possibility of cuts in the prices of non AI devices in the mid premium, premium and super premium segment devices in India as well. July/August should see more launches and a possible lift in sales after a weak Q2 with new launches and the onset of the festival season. The way smartphone majors are stocking up on new supercharged chips from the likes of Nvidia does indicate a massive launch of new devices that incorporate AI in a big way. Will AI devices lead to a spike in premiumisation with the super premium segment moving to 11-12%? Shouldn't brands in these segments clear their non AI inventory fast? Will Apple's next iPhone define AI demand? With its new iPad, #Apple has provided a taster for what AI devices could be in for in the second-half of the year. The UAE release of the iPad, which is Apple’s first model with an extensive set of AI features, has been met with solid initial demand, according to retailers. This sets up things nicely for the next Apple iPhone. “The #SamsungGalaxyS24Series launched in January has already shown that smartphone users are willing to upgrade to AI,” said a retail sector analyst. “Until recently, the question was what Apple’s plans were for AI. That’s been answered, and the market will see heavy demand for AI-backed devices. A clear beneficiary will be the next iPhone. Can Q3 therefore be the quarter which sees the entry of Apple in the top 5 smartphone brands in India? Well, the possibilities run high.

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