Consumer Packaged Goods in India
Market Entry to India > Consumer Packaged Goods in India
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A management consultancy firm advising American companies how to increase revenues and reduce costs by leveraging the economies of China and India.
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Consumer Packages Goods (CPG) are often-referred to as Fast Moving Consumer Goods (FMCG) in Asia. The CPG market is set to treble from $11.6 billion in 2003 to $33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories.
Much of this emerging middle class has been raised in the postliberalization era and has an optimistic view on growth and the economy as a whole. Apart from basic needs being satisfied, many of these households with children are trying to help their kids get ahead and are beginning to view certain consumer goods as a sign of the good life. These consumers view price and value for their money as important aspects in their consumer purchasing and although many long for western goods, they will not pay a premium for them.
Over 40 percent of the population in India is under 21 years of age. The widespread presence of American media has made this market segment curious about the outside world while still being rooted in Indian culture and traditions. This curiosity has created a latent demand for the good life and for western style convenience goods. Local distribution and logistics are still challenging but continue to improve. Packaging and pricing requirements for the market are unique. While multinationals like Unilever, Nestle and Pepsi have a long history in India, large unmet opportunities exist for many others in the Indian economy.
Key Segments
The CPG sector has three key segments, each with its own hosts of products that have relatively quick turnover and low costs:
• Household Care
• Personal Care
• Food & Beverage
Our Services
Amritt’s go-to-market service for India helps with developing and executing roadmaps to expand your presence:
• Feasibility Studies & Financial Analysis
• Conducting insightful market and consumer research
• Qualifying local distributors, dealers, and agents
• Negotiation with Indian counterparts
• Attract and retain top marketing and business development talent
• Avoiding cultural gaffes
