The Global economic Melt down has dealt a body blow to all the Sectors as a whole,but the fmcg sector used to boast that they are immune.!!!
Likewise the FMCG sector would have come out unscathed by the bloodbath followed by the collapse of the gigantic investment banking company, lehman brothers.But life is not a cake walk.Its true that in India, the impact on fmcg business is not so hard as compared with our western counterparts, but the jostle came in a form of several joblosses in the financial, real estate,IT and other sectors,besides the salary cuts across the industries.The personal care category was Hit due to the lower disposable income.The negative vibe flowing across the country, badly affected the consumer behaviour especially in the high end products.
The challenge for these fmcg giants are not reviving from the current downturn but to maintain the past growth records.Here Godrej has taken a lead through its personal care segment booking around 500 crore from a single category.So these compaies should come up with varoius innovations in their product category as well as customer service in order to negate this effect.
It is absolutely right that the personal care category was hit coz of lower disposable income but as far as high end products are concerned, I dont think tat there would have been much effect on them. One of the reason is that these high end products are used by the people of affluent classes and m damn sure that they wont stop the habit of using Dove soap for example, if they use it. Similar is the case for the other high end products. I am not stating that there was no negative effect on the sale of those products, of course there was, but not as big as that of lower end products which are used by the middle class people and they are those who are most affected by this economic slowdown.
ReplyDeleteAs far as innovations are concerned it is not easy for any company to innovate new products as it takes much time and requires lots of money. The main motive of these companies should be to reposition their products again in the mind of the end consumers.
The condition in India is improving day by day and it is recuperating from the slowdown. At this time the middle and lower class will try to save more and more for their rainy days coz of their worst experience. So, at least for an year or two the companies will have to adopt lower cost strategy and they should be ready for a price war. That is what happening in telecom industries these days.
nyways gud going dude.... keep writing. :)
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