A Report: The FMCG Roadmap to 2020: The Game Changers, was released at the CII FMCG Conference

At an informative and critically examined seminar, ‘FMCG Forum 2010: The Game Changers’, organized by CII, a thorough presentation and debate substantiated with facts and figures was undertaken. The central theme as spelt out by Kannan Sitaram, Conference Chairman and Former COO, Dabur India Ltd, in his welcome address was the position of FMCG industry in 2020. In his opinion standing at 130 Crore today it is all set to grow in another 10 years by 4 to 5 times to a strong 6000 Crore level.

e4m by exchange4media Staff
Updated: Nov 19, 2010 7:51 AM
A Report: The FMCG Roadmap to 2020: The Game Changers, was released at the CII FMCG Conference

At an informative and critically examined seminar, ‘FMCG Forum 2010: The Game Changers’, organized by CII, a thorough presentation and debate substantiated with facts and figures was undertaken. The central theme as spelt out by Kannan Sitaram, Conference Chairman and Former COO, Dabur India Ltd, in his welcome address was the position of FMCG industry in 2020. In his opinion standing at 130 Crore today it is all set to grow in another 10 years by 4 to 5 times to a strong 6000 Crore level.

Taking the lead from here, Anand Kripalu, Managing Director, Cadbury India Ltd, categorically stated that we achieve big when we aim high. People with small dreams achieve even less than targeted. If the goal is small so is the corresponding planning and thereby lower is the achievement. Currently, the FMCG market touches, he said, the lives of every Indian in a positive way, with its distribution being done in the classical homogenous model. Comparing the growth in the 1st half of the last decade to that of the 2nd half, he added, “Where the 1st half stood at 4 to 5 per cent the 2nd half grew 2 times. Based on current trend and with introduction of time sensitive changes, 20per cent is there for the asking.” If today per capita spending on FMCG is low, the next decade promises to be a explosion. Three parameters need prime attention - Growth, Efficiency and Capability, he informed .

For growth to take place not only should we aim high; a lesson that every Indian can draw from the penetration success of the Telecom sector, but also consider other issues. Indian markets need to be sliced vertically in three ways-the majority middle class consumer, the 3% Premium consumer and lastly the Rural Consumer. Issues such as distribution and deliverability require redefinition. The biggest competitor is the non-user and as he further states the drive to create new categories must persist. Supporting his statement, he gave the example of the noodle market which took 30 years to develop. To this if facets of modern trade, category and consumer knowledge is added, growth is there for the asking.

The 2nd parameter of efficiency relates to the Supply-chain expertise, the still ‘primitive’ service level, and product quality. We have to reach the stage when we can deliver the products at the right time, at right place. The new era resolves to better its efficiency through outsourcing. FMCG needs to follow the Telecom sector route her by outsourcing areas such as HR. They could leverage technology to supply goods at lower prices.

Capability is the last area that Kripalu focused on. Future ready organizations need to be built with right talent and updated technology. Responsible corporates should be capable of enhancing their growth along with a sustainable environment.

Expanding on these thoughts, Chitraranjan Dar, Chairman, CII National Working Group on FMCG and CEO Food Division ITC Ltd, reiterated that the next 10 years will see an era where the face of the consumer will be changing. Consumers will seek greater value and be willing to experiment. They would be consciously seeking Health and wellness concerns. The demand for premium products is all set to rise. The future according to him is certainly not going to be a reflection of the past. So think big and look beyond at differentiation, Innovation, Consumer connect, integrated information, local and global scenarios and Sustainability.

Taking a look at the Rural Market for FMCG, Pradeep Kashyap, CEO MART, also known as the father of Rural Marketing, informed that 90 per cent of the population comes from this region with 80% of the villages being currently connected. Today, the total sale of FMCG products in Rural India equals that of Urban India. As an example, he stated that Clinic Shampoo is highest selling shampoo in rural market. Already, in some areas of rural Haryana big Market chain outlets have come and brands are fighting for shelf space. If the FMCG market has to take the leap forward in 2020 the rural segment cannot be ignored.


Among the other eminent speakers were Madhukar Sabnavis , Country Head , Planning and Discovery , O& M ; Ambi Parameswaran, ED and CO , Draftfcb Ulka Advertising ; Sudhir Sethi , Founder Chairman and MD , IDG ventures , India ; Naresh Malhotra , Operating Partner , Sequoia Capital and Mr Kunal Bahl , CEO , Jasper Innovative Marketing Solutions and Jai Sinha , MD , Booz and Co .

 

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