Pockets of Growth seems to be a recurring theme amidst an era of economic change, modest growth and evolving consumption patterns. Across the board, growth in FMCG is getting harder to achieve but if you scratch below the surface, there are many examples of companies, segments and channels performing strongly.
In general, local players are offering increasingly better quality products at competitive pricing. They often have strong on the ground presence and a sustained distribution network that ensures their products are readily available to all consumers – not just those in the top tier cities but in secondary cities and regions where consumption is accelerating. In many markets like India, governments are promoting the “Made in India” theme, which drives consumers’ emotional connection and loyalty to local brands but also local brands
are benefiting from a deeper understanding of local regulations and taxation incentives that these schemes provide.
Connecting consumers to your brand values and brand story is critical to success and longer- term loyalty. In a number of markets, local brands are capitalising on a revived “local pride”, leveraging a brand’s heritage in the way they share their story with consumers often via social media. “Focus” is also a strength of local brands - be it on a specific consumer group or specific region to ensure they maximise their impact for the resources they have available.
Big or small – locals are winning the growth race! It’s up to global players to take stock, dig deep and understand the nuances by market and connect with local consumers.