Key Points
Companies including Hindustan Unilever, Britannia, Parle and Marico said smaller players are eating into their market share in segments such as tea, detergents, oil, biscuits and snacks after raw material prices moderated, helping them enter the market with lower-priced products...
The local players, because of the pricing actions that they are taking in their small vicinity, have gained a little bit of market share," Varun Berry, managing director at Britannia, told analysts..
For instance, there are 2,500 local competitors in the rusk market while nearly 40% of the snacking segment is controlled by over 3,000 smaller or regional players..
Companies said, during deflationary times, local rivals give more value to consumers in terms of extra grammage and are also more agile in launching products.. . "There are thousands of local players in the snacking market especially in the extruded sub-segment..
Market research firm Kantar analysed 13 categories across personal care, home care and food and beverages and found that local companies, which are present in just one market, grew 13% during the year ended April 2023 compared to national brands that expanded 9% during the same period...
