Local FMCG brands make a comeback after covid

livemint.com:

New Delhi: Local fast-moving consumer goods brands, which struggled in the aftermath of covid, are scripting a resilient resurgence with robust localized marketing strategies, including offering products at competitive price points, to take on the more established companies. According to a recent study released by researcher Kantar, volume growth of local brands surpassed that of national brands significantly over the 12-month period ended 30 April. Local brands, defined as those operating within a single market, witnessed 12.7% volume growth, while national brands posted 8.2% rise during the period.

In fact, local brands are also making inroads into the market share of both regional players and unbranded goods across categories, including detergent bars, utensil cleaners, spices and snacks. Notably, regional brands saw a 2% dip in volume, while unbranded goods that are tracked by Kantar were down 4.8%. Kantar tracked local brands across 13 categories such as personal care, home care and foods.

K. Ramakrishnan, managing director, South Asia, Worldpanel division, Kantar, said that while local brands are always active in respective markets, the high inflation period following the pandemic dealt a temporary setback to these brands. However, they are making their presence felt, he said.

“In times of uncertainty, consumers tend to gravitate toward known and familiar brands. So, national brands gained, while local brands got pushed out a little bit during the pandemic. Immediately after that inflation followed and, as a result of raw material shortage, they went out of the market.