India's $200Bn FMCG sector is getting disrupted. This is how

New generation. New rules!

(Note: We rebranded India++ newsletter to D2C:Next, with a strong focus on one of the biggest opportunities in India, i.e. retail sector. Expect curated data/insights on your way)

India’s FMCG is $200Bn industry and is getting disrupted by startups and importantly, the new age audience.

Unlike any other attempt earlier, the D2C + Quick commerce + new age audience (post-covid dynamics) is a real thing.

Big ideas from brand consultant, Harish Bijoor on how FMCG businesses are getting disrupted, and the moat of yesteryears may not suffice.

Distribution Democratization

Traditional distribution channels are no longer dominant.

E-commerce, quick-commerce, and D2C platforms have revolutionized product accessibility.

Market Segmentation

India now has four segments: urban, rurban, rural, and deep-rural, each with physical and virtual presences.

Premium Brand Shift

The concept of "premium" is evolving.

Many formerly premium brands are now accessible to mass markets through smaller packaging.

Rise of Small Brands

Consumers are seeking alternatives to established brands, favoring smaller brands that emphasize holistic, eco-friendly attributes.

Asset-Light Model

New FMCG companies are leveraging outsourcing and modern distribution channels (B2B intermediaries, e-commerce listings and D2C apps) to operate with minimal fixed assets (no factories/no sunk costs).

Portfolio Diversification

Successful FMCG companies now offer products across all price points and market segments.

The new FMCG game is a portfolio game. You must have a foot in every peg of the market.

Generational Shift

By 2025, the Alpha generation will be the largest demographic, necessitating a deep understanding of their unique preferences and behaviors

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