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This has made the proliferation of localized brands and products being offered in loose form possible in small towns and rural India where brand awareness is low.
Brand building and product differentiation hence play a pivotal role in the success of a product in the FMCG sector. Consumer insighting and innovation assume great importance. Where innovation is low, smaller players are able to offer similar products at reasonable prices, making cost management another key to successful performance in the sector.
While the penetration of some product categories is high, there are several product segments in which the consumer spends as a proportion of disposable income appears very low when compared to other emerging Asian economies...
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