Retailers give FMCG cos a helping hand
Indian retail chains and the FMCG industry seem to be coming closer. Retail chains are fast emerging as a popular hunting ground for critical consumer insights, something that is much in demand among FMCG firms.
By Writankar Mukherjee, TNN |
KOLKATA: Indian retail chains and the FMCG industry seem to be coming closer. Retail chains are fast emerging as a popular hunting ground for critical consumer insights, something that is much in demand among FMCG firms.
Companies like HLL, Marico, Emami and Wipro Consumer Care are using modern trade inputs for altering product price points, devising new promotional offers or even changing entire packaging. The way the retail chains are segmenting the market, each targeting a particular socio-economic class, is actually fuelling the entire process.
Till recently, FMCG companies gathered much of their consumer feedback either from independent or commissioned market/consumer studies or from the distributor’s end. “Unlike general market studies, the modern retail chains provide much more concentrated and specific consumer understanding which a key requirement of the FMCG sector is,” said JH Mehta, president, Spencer’s Retail.
Wipro Consumer Care recently modified the height of its Wipro Safewash pack so that it fits perfectly into the retail shelf. The company also recently launched a Santoor soap with a price tag of Rs 5. Both were based on the retailer’s feedback.
“The smaller Santoor pack received extremely good sales response. We have been making changes in packaging and offers based on retail feedback,” said Nagender Arya, GM, Wipro Consumer Care & Lightning.
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“This feedback gathering process is not yet quite structured, but it is gaining importance. Modern trade partners do provide some early signs which are later validated by consumer studies,” said Saugata Gupta, head (marketing), Marico. Marico has recently altered packaging for its Parachute After Shower Hair Cream and Silk & Shine based on such inputs.Additionally, retail chains are providing FMCG companies with feedback on competition and market trends in various product categories. “The shop floor is an important place to understand consumer behaviour, since today much of a consumer’s buying decision takes place inside the store. Doing joint consumer study with brand owners is certainly the way forward,” said Damodar Mall, president, Pantaloon Retail India.
Understandably, the FMCG companies are now undertaking a large number of relationship-building exercises with the retail community. “Like consumer contact programmes, we have evolved regular contact programmes with the retail chains,” said Mr Gupta.
Analysts say the massive growth of rural retail chains like Triveni Engineering’s Triveni Khushali Bazar, ITC’s Choupal Sagar or Godrej Agrovet’s Godrej Aadhaar will further spur the trend.
“With lack of consumer data from the rural markets, the rural chains have the potential to provide the much-coveted consumer inputs from their catchment areas,” said a senior FMCG industry professional.
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