Small is the new big: Local FMCG brands ahead in race with giants
inflation is cooling down, the local Fast Moving Consumer Goods (FMCG) Brands are shining and growing at a faster pace than the large scale ones in all categories, from noodles to even dishwash bars. A Kantar report accessed by TOI showed that local dishwash brands Supremo 51 (Madhya Pradesh) and Reflect (Maharashtra) have seen over 100 per cent growth in households over one year, while Balaji Gippi noodles in Gujarat has grown 58 per cent. «The mix of purchases that are made by a household keeps shifting depending upon inflation or uncertainties.
During Covid, we had a very poor presence of local brands for two reasons. One, in a situation of uncertainty consumers tend to gravitate towards familiar or known brands. Local brands suffered on account of that.
Second, they faced logistical issues because of the lockdown,» K Ramakrishnan, MD, south Asia, worldpanel division at Kantar, told TOI. Local brands are unable to cope with the pricing pressures during inflation and during times like the pandemic their growth is marred. On the contrary, national brands have an upper hand during such times and become consumers' 'go-to' choice.
They continue to grow even during inflationary times. «Local brands as they couldn't take price increases when raw materials became expensive. After two years of suffering, local brands have grown more than the national brands.
It's cyclical and this is the year in which we are seeing a resurgence of the local brands,» TOI quoted Ramakrishnan. As per the report, Karnataka's Teju masala, which has a 37 per cent penetration, is growing at 65 per cent and Challenge detergent bar with a 20 per cent penetration, is seeing 42 per cent growth. Another local brand from Karnataka, '1to3 Noodle' which has
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