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Time |
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| Time will be the new currency of the future – products which conserve this currency will be lapped up. Ready-to-eat foods, instantly-working cosmetics and wellness products that deliver quick relief will be overwhelmingly preferred.
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Out-of-home consumption is emerging as a new section in the FMCG sector. With changing lifestyles, the concept of three core meals fast vanishing, companies like Coke, ITC, and Dabur are venturing into this market and are bringing out new product packaging for the segment.
With individuals & families becoming increasingly physically insular from their traditional influences the kinship fraternity, ‘Blog-of-mouth’ is the neutral endorsement consumers desperately see
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New Media |
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| Consumers are leaning more and more towards self-expression & self-indulgence. While technology (internet, cell-phones) facilitates this by fostering physical isolation, it also allows people to come together in new ways;
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virtual communities centered around similar interests and mind-sets; a media ambience which FMCGs can leverage to transfer brand values.
The one-third of consumers with social networks are more likely than average to make recommendations about out-of-home entertainment, home improvement/décor, and wellness / fitness / exercise and they are twice as numerous as the online-connected crowd.
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Mobility |
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| Mobile phones are now well and truly entrenched as part of
an individual’s persona – almost a ‘tacit mentor’ which
controls life & behavior.
FMCG products have the
golden opportunity to catch consumers at the time & place
when they can actually consume the brand. |
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Kids |
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| With kids becoming large consumers of all media,
the contours of Pester Power are changing – it operates
on a larger range of products of household use,
has become more definitive, and emanates from
kids in lower age brackets.
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Kids would increasingly influence buying behaviors,
especially in categories such as food products, holidays and mobile phones.
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Health & Wellness |
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| Health & Wellness are becoming high-anxiety areas
for consumers across SEC A & B, especially in Foods
& Beverages and Beauty products. A new breed of
‘Cosmeceuticals’ is already on the shelves – this is
the harbinger of robustly-researched, thoughtfully
packaged & promoted products catering to
different hues of ‘well-being’.
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To the evolving urban consumers, health & wellness
have taken on new meanings. They are no longer about
being physically fit or robustness of body functions
Instead, it is all about feel good’ & ‘look good’.
How one comes across – perceptually – to one’s peers
is the benchmark of health & wellness.
About 120 million consumers are gradually renouncing
old patterns of consumption and are shifting from
using FMCG products, replacing them
for health based/ organic / natural products.
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Leisure |
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| Video gaming has moved on from a young boys’ club to
all-inclusive, all-ages and co-eds. FMCGs stand a lot to gain by placing themselves in the midst of this gaming culture / ambience. |
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Retail Formats |
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Modern Retail Formats (Malls, Shopping Complexes) are
becoming powerful in their own light. Brands will increasingly be
viewed in the ‘company they keep’; associating with
and having visibility at distinctive retailers will rub-off
on brand equity. And even offset the brand’s limitations. |
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Young Executives |
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The 18 to 35-year-olds are the new target audience for just
about everyone trying to grab eyeballs in the FMCG market.
With product marketing directed to lure the young executive,
it's the yuppie who're finally calling the shots about
what's going to sell and what's not. |
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Brand Power |
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Four in ten global consumers agree that they
"like to buy products
with prestigious brand names. |
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Celebrities |
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‘People Brands’ is what celebrities first ought to become.
Celebrity endorsements of a brand will become hack and
unviable. Celebrities which are the brand will be the only
way to make things work; the brand and the celebrity have
to be mirror images of each other. |
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Innovation |
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Innovation today is not as much about getting great or
breakthrough ideas – it is more about evolving processes
to make them work. For FMCG companies, this may mean focusing more on
innovation in distribution, promotion, stocking and post-use experience rather than products or positioning.
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FMCG majors now organizing beauty contests in villages in a bid to promote their skin-care and hair-care range.
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Rural Markets |
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| In the semi-urban segment, present FMCG market size is around 19% and is expected to scale up by 6% to touch 21% by end of current fiscal.
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In urban India, where FMCG market size is currently estimated at a 29% level, there is likely to be a fall, bringing it down to 22%.
Growth in rural and semi-urban market size for FMCG products is seen amongst youth, numbering 180 million.
Total consumer expenditure on food is around $125 billion as against $160 of China; 45% people in India are 20 years of age which will drive and fuel demand for FMCG products particularly in rural and semi-urban segments.
Over 70% of FMCG sale is to middle class households and over 50% of middle class is in rural India
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Culture |
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| Brands need to deal with blurring & polarization
in societies – man/woman, young/old. near/far. In their
attempt to be sharply positioned, they cannot afford
to alienate the many polarized segments of society.
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Colleges & Universities are becoming the crucibles
of culture. With spending power commensurate with
their evolved information power from New Media – and
being relatively free from parental supervision – these
campuses will foster the Next Big Thing in most
categories, especially FMCG, so sensitive to
cultural norms
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