Consumer Goods

Consumer Packaged Goods (CPG) are often referred to as Fast Moving Consumer Goods or FMCG in Asia. India's CPG market  was about $30.5 billion in 2011. Retail sales are delivered via a network of over six million stores, mostly single-location family owned locations.

Penetration level as well as per capita consumption in most product categories is low indicating the untapped market potential.  The Indian consumer market is driven by burgeoning Indian population, particularly the middle class and the rural segments.  For foreign CPG companies, it presents an opportunity to convert  fresh consumers to their branded products. Growth is also likely to come from consumers upgrading to more premium or better differentiated products  in the matured product categories.

Much of this emerging middle class has been raised in the post-liberalization 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 respected brands 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 resist paying a premium for them.

Entrants to the consumer packaged goods industry in India are often more successful if they can offer a range of tiered brands with appropriate price and value considerations.  Top consumer goods companies from overseas such as Unilever and Procter & Gamble have used such an approach to build  success and market share in the Indian FMCG market and industry.

50 percent of India's population is under 25 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 such as Nestle and Colgate Palmolive have a long history in India, large unmet opportunities exist for many other entrants from overseas 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 and include

Feasibility: We assess the opportunities, risk and challenges in India, conduct financial analysis, help you choose product portfolios for India. We qualify local partners, condut market visits, perform margin analysis and more

Business Planning: Working with your team, we help prepare a business plan addressing launch sequences, sales volumes, and revenue and cost projections

Pre-Entry: We guide you in recruiting the leadership team in India or selecting your internal candidates who may wish to work as expatriates, in helping select local accountants, attorney, auditors and others necessary partners

Launch: Help as needed with follow up and management of the network in India. Communication between Western and Indian executives
All along, we help you to avoid cross-cultural gaffes in dealing with the complex and varied Indian consumers, executives and companies.

  • Learn about major India business news
  • Stay ahead on emerging economy trends
  • Choose newsletter closest to your interest


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