The magnitude of the success of the FMCG sector in penetrating deep into the lives of an average Indian can be understood from a simple foretell.
80% of Indian would own a LVMH product in 50 years from now. It is indeed something quite difficult to imagine as of today. Similarly, at the time of independence such was the story of FMCG products. Even the products which are today considered the bare necessities of hygiene were then the products of luxury, which only the very elite could indulge in.
Though the entire FMCG sector was the premium sector then, but its penetration started off with the introduction of economic and the low priced products targeted towards the mass consumption.
Little did Mr.Karsan Bhai did know then, that his innovation in the 70’s (yellow colored caustic powder) would ultimately route the industry to the era of bio-clean washing powders as of today.
The legend has it that the Innovation in the sector has been the major driver of its success.
It is interesting to know that the innovations happened not just at the product stages, but the channels, promotions as well as markets. Therefore, there came the historic fad of FMCG being the thing of riches; today the rurals are considered the major growth drivers. The sector boasts the privilege of including a vast range of products scattered in-between Food and Non-Food products. With the rise of the country’s economy over time, the category has seen a multifold increase reaching a 20 Bn $ in the year 2008.
The entire globe is aware of the recession hit in the last year, the aftermath of which seems to be persistent. It has treated every country and sectors alike, reserving a bias only in the magnitude of the hit. Restricting our observations to our country alone, it is well known that in times like these, the FMCG sector has actually gained in values. Also, the values have not just increased in the vocation providing metros, but also the agriculture dominated rurals.
