Emerging FMCG Brands Disrupt Major Players
The FMCG sector is experiencing a notable shift towards new and regional brands as consumers lean towards value and local preferences, affecting major firms. CEOs from companies like Honasa, Britannia, and HUL detailed the challenges posed by these smaller competitors during their latest earnings calls.
- Country:
- India
The fast-moving consumer goods (FMCG) sector is currently undergoing a significant transformation as consumer preferences shift towards emerging and regional brands. These brands offer aggressive pricing and cater to local tastes, challenging the dominance of established FMCG giants.
During recent earnings discussions, leaders from major companies such as Honasa Consumer, Britannia, and HUL have acknowledged the growing competition from these smaller entities. They attributed the trend to newer brands adopting strong vernacular strategies and achieving better distributor margins, consequently impacting the growth of larger, well-established brands.
Executives from Dabur, Marico, and other industry leaders echoed similar sentiments, noting increased pressure in specific product categories and regions. The competition serves as both a challenge and a catalyst, urging major players to innovate and adapt to evolving consumer demands.
(With inputs from agencies.)
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