Is there a silver lining to the dark cloud?

With a total market size of over US$ 13 billion and a healthy CAGR of 11% in the last decade the Indian FMCG sector has become the fourth largest sector in the economy. The sector is estimated to grow to US$ 100 billion by 2025 owing to the following economic & market dynamics:-

  • Rise in disposable incomes leading to changing consumer preferences
  • Increasing rate of urbanization
  • Retail revolutions which is leading to innovative and stronger channels of distribution to the urban and rural market
  • Skilled marketing, heavy advertising, slick packaging and strong distribution networks backing the products
These positive sentiments have led to a rapid influx of domestic and international brands in the category, which has given consumers something that they never had - options to choose. To entice the consumers brand have resorted to increase in the frequency of promotions and discounts, Market Xcel under took a study to understand the influence of such promotions and discounts on consumers to make a brand switch amongst other key factors such as:-
  • Willingness to try new products
  • Experimental habits
  • Recommendations from retailers
  • Recommendations from relative….
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