Taller, stronger, sharper: Desi pharma is on a roll
India has witnessed a significant growth in pharmaceutical generic brands with sales over ₹100 crore in the last 15 years. These brands now make up 44% of the domestic formulation market valued at around ₹2 lakh crore. A report by investment banking firm Avendus Capital highlights the exponential increase in brands with sales exceeding ₹100 crore, reaching 388 in FY24 from 21 in FY09. These brands, including some with sales above ₹500 crore, have outpaced the industry growth rate, attributed to factors like lifestyle diseases and quality issues driving reliance on trusted brands. Key Points
Economic TimesMyntra appoints Venu Nair as Chief of Strategic Partnerships and Omni Channel
Nair comes with an experience of over 30 years in retail, sourcing, business analysis and strategy. He has joined Myntras senior leadership team where he will be responsible for strengthening Myntras existing international brands portfolio, while building strategic partnerships with leading global brands and will also be managing omni channel strategy for brands. Key Points
Economic TimesDesi versus videshi retail: Global brands are making more space for themselves
Global brands like Zara, H&M, Bugatti Fashion, La Vie en Rose, Adidas, Nike, West Elm, Starbucks, Uniqlo, and Marks & Spencer are growing rapidly in India. Small towns with brand-conscious buyers and rising disposable incomes are driving their expansion. International brands accounted for 25% of retail leasing in 2023, up from 14% the previous year. Canadian lingerie retailer La Vie en Rose debuted in India, while Rimowa, Bugatti Fashion, West Elm, and Victoria's Secret expanded their presence. In addition, several global brands have entered tier-II cities, capitalizing on the strong demand from smaller cities. Desi retailers, on the other hand, have slowed down their store expansion due to a focus on profitability and limited market opportunities. Key Points
Economic TimesRam Mandir Inauguration: brands opt for on-ground presence in Ayodhya
Ram Mandir Inauguration: Branding consultants believe there could be multiple reasons for this. For starters, January may not be a marketer's favourite month to spend on a big campaign considering the Diwali season - when brands incur huge ad spends to drive festive consumption - concluded not too long ago. Key Points
Economic TimesTop global apparel brands and retailers doubled sales in India over the past two years
Swedish fashion retailer H&M and rival Zara reported a 40% increase in its topline while Japanese brand Uniqlo saw a 60% jump in sales. American denim maker Levi Strauss and British brand Marks & Spencer posted a 54% increase, latest filings with the Registrar of Companies showed. Dubai-based department store Lifestyle International, too, saw a 46% jump in revenues on a large base. Key Points
Economic Times
FMCG will continue to grow but there will be a shift from mass to niche brands: Anand Ramanathan, Deloitte
Anand Ramanathan says: “Overall the market looks good, particularly rural India and hence as demand strengthens, some of these pressures of inflation will soften. Also, 60-70% of an FMCG brand's cost comes from the cost of raw material and therefore, inflation and geopolitics and commodity prices, etc, have impact on pricing which many a times they are not able to pass on to the consumer.” Key Points
Economic TimesFor FMCG giants, a big opportunity can also turn into a looming threat
Big FMCG companies are heavily investing in e-commerce to tap into its vast potential. Their strong brands and significant investments in technology will drive their success in this growing market. However, emerging Direct-to-Consumer (D2C) brands pose a constant threat, keeping the giants on edge and vulnerable. Key Points
Economic TimesBig discounting makes a comeback with a bang in early end-of-season sale
Some brands said the year-end online discounts in categories like apparel, electronics and mobile phones would be among the highest this year, next only to the festive season deals. Most of the apparel brands have already started offering hefty discounts on their seasonal line-up of winter wear in brick-and-mortar stores, which they usually do towards December-end, they said. Key Points
Economic TimesFMCG giants feel the pinch as regional players' reach widens
In a notable shift, local and regional firms have made significant inroads, reaching up to 31% more households in key segments like biscuits, soap, washing powder, and detergent during the September quarter. This trend has caught the attention of chief executives at major consumer goods companies, who are now acknowledging the resurgence of smaller brands and its consequential impact on their sales growth. Key Points
Economic TimesPunjabi brands have cracked the next advertising war. Big agencies have to catch up
Storytelling on viral Instagram Reels are the most effective. brands can reclaim what they were in the TV era, but only if they crack the millennial and Gen Z code. Key Points
ThePrint
India's Smirnoff vodka maker United Spirits Q2 profit rises on strong premium demand
India's United Spirits (UNSP.NS), which makes Smirnoff vodka, reported a 14.2% rise in second-quarter profit on Wednesday boosted by strong demand for its premium brands of alcohol. Key Points
ReutersIndia's Arvind Fashions Q2 profit rises on healthy sales
India's Arvind Fashions (ARVF.NS) reported a 18.9% rise in the second-quarter profit on Tuesday, aided by healthy sales of clothing and footwear and as power brands helped it maintain wider margins. Key Points
ReutersSmall versus big: Why less inflation can become a big worry for FMCG giants
According to data from the retail intelligence platform Bizom, smaller product sizes have experienced a more rapid growth rate compared to medium or high-priced alternatives across most FMCG categories, TOI has reported. The data revealed that overall sales decreased by approximately 11% in August 2023 compared to the previous year. Key Points
Economic TimesChinese smartphone companies reboot as rivals creep up the screen
Experts feel that this is also a good time for new entrants such as Nothing and Google to get a foothold with relatively lower entry barriers as compared to other markets. Increased scrutiny by Indian authorities and tepid demand for higher volume smartphones costing less than Rs 10,000, where Chinese brands have a major presence, has seen the combined share of these products drop to 61% in Q2 2023 from their peak of 77% in Q1 2020. Key Points
Economic TimesDomino’s, Pizza Hut and other pizza chains cut rates as small rivals slice up market
Domino's sent messages to its subscribers last week alerting them about an epic price drop on large pizzas . The pizza chain said prices of vegetarian large pizzas have been reduced from Rs 799 to Rs 499, and that of non-veg large pizzas from Rs 919 to Rs 549. Pay less, get more, the company said in the messages. Key Points
Economic Times
TCS retains top position as India's most valuable brand: Study
Tata Consultancy Services (TCS) has retained its top position as India's most valuable brand for the second year in a row, with a brand value of $43 billion. HDFC, Infosys, and Airtel ranked second, third, and fourth respectively, while State Bank of India entered the top five. Key Points
Economic TimesIdentify yourself with the startup before investing, says Virat Kohli
Indian sports stars are increasingly investing in mid-sized and emerging startups, according to reports citing former captain of the Indian cricket team, Virat Kohli. The endorsements have proven beneficial for brands and provided startups with a platform, especially during funding slowdowns driven by traditional sources such as venture capital. Key Points
Economic TimesIndian retailer Arvind Fashions quarterly loss deepens on demand slump
Arvind Fashions (ARVF.NS), which houses brands such as US Polo and Calvin Klein in India, reported on Thursday a loss in the first quarter, pulled down by lacklustre demand as inflationary pressures prompted shoppers to tighten their purse strings. Key Points
ReutersMasses are coming: A growing challenge threatens India's big FMCG companies
Local brands in India are growing faster than national brands in the fast-moving consumer goods (FMCG) sector due to a slowdown in inflation. India's consumer demographics are also shifting, driving growth in the sector. A recent Redseer survey revealed a large proportion of Indian consumers are willing to buy unbranded products. The mass class, which is set to underpin India's retail industry, focuses on value for money, and is increasingly purchasing online. Key Points
Economic TimesSmall is the new big: Local FMCG brands ahead in race with giants
FMCG brands in India are growing at a faster pace than large-scale brands across all categories with volumes rising to 28% in the moving annual total (MAT) of April 2023, according to a Kantar report. However, during inflation, local brands are unable to cope with pricing pressures and grow at a slower rate while national brands usually become consumers' go-to choice. Key Points
Economic Times
Mufti jeans owner, Credo brands marketing, planning for an IPO; great opportunities for investors the fashion industry
Mufti Jeans' owner, Credo brands Marketing, plans to file its IPO draft prospectus with SEBI. The IPO will be a complete offer for sale, with up to 19.63 million shares being sold. The brand offers a wide range of men's casual wear and has experienced significant growth in revenue. Key Points
mintMyntra launches program to accelerate Made in India D2C brands' growth
Myntra, an Indian e-commerce company, has launched a 'Myntra Rising STARS' programme to fast-track the growth and scale of 200 Direct to Consumer (D2C) Indian fashion and lifestyle brands. It allows brands to leverage Myntra's brand-building expertise and achieve scale at an optimized cost, while improving their on and off-app visibility. The programme aims to ease pressures for Indian D2C brands in expanding their customer base and scaling due to resource constraints. Key Points
Economic TimesCan Indian phonemakers ring in the China magic?
Reliance subsidiary Jio Platforms has launched a 4G feature-phone, Jio Bharat 4G, for under ₹1,000. Other Indian brands are rushing to make cheap smartphones. Having lost out to Chinese brands a decade ago, can Indian brands cut it in today’s market? Mint explores: Key Points
mintSmartphone brands line up launches across price bands
“There will be some amount of pent-up demand this year, because not a lot of people upgraded their smartphones in the last two years due to macroeconomic headwinds, and lack of 5G networks,” Counterpoint Research director Tarun Pathak said. Counterpoint has observed a change in consumer behaviour where the demand is now concentrated around promotional periods. Key Points
Economic TimesIndian mobile phone brands Micromax, Karbonn & Lava plan a major comeback
These brands said they hope to win back market share since consumers dont have any choice in the entry level price whereby they are forced to buy either refurbished smartphones, on finance schemes or holding back on their purchases. Karbonn is looking to launch a smartphone priced at Rs 4,999, while Micromax at Rs 5,999 but in talks with telecom operators to bundle the handset at Rs 4,999. Key Points
Economic Times
TCS, Reliance, Jio top best Indian brands 2023 ranking
Technology giant TCS and India's most valuable company Reliance Industries have topped the list of the country's most valuable brands, according to Interbrand, the renowned global brand consultancy. Tata Consultancy Services (TCS) topped the 2023 50 Most Valuable Indian brands list with a brand value of Rs 1.09 lakh crore. Key Points
Economic TimesMeet Ananth Narayanan, Ex-Myntra CEO, Mensa brands founder: Know about his journey, education & family
Ananth Narayanan is the founder of Mensa Brands. Mensa brands looks to invest into and work with founders of digital first brands and scale them globally. Key Points
FinancialexpressReliance may be a bigger threat to D2C FMCG brands: Kantar
The revenue of D2C brands could reach $10 billion by 2025, compared with $4 billion now. However, Reliance, which has the largest supermarket chain in the country and is also now present in several fast-moving consumer goods segments, could pose a threat to these smaller online-only brands. Key Points
Economic TimesTrent to push store brands to grow grocery chain Star Bazaar
Trent Ltd., which runs apparel stores Westside and Zudio, is looking to scale up its grocery business by focusing on promoting its own brands. The Tata Group company runs the hypermarket chain, Star Bazaar, in a joint venture with the UK’s Tesco and currently has around 50 stores spread across Mumbai, Pune, Bengaluru, Kolhapur, and Hyderabad. Key Points
The HinduReliance forming a new camp for pushing Campa Cola
Reliance had held discussions to acquire a majority stake in Kali Aerated Water Works before it bought Campa in August last year. Bovonto is one of the largest cola brands in the southern markets, and competes aggressively with multinational brands Coke and Pepsi. For its Campa franchise, RCPL has signed up as pouring partner with three Indian Premier League (IPL) teams - Lucknow Super Giants, Punjab Kings, and Sunrisers Hyderabad Key Points
Economic Times
Reliance to offer FMCG products at up to 35% lesser price
Earlier this month, RCPL relaunched the iconic soft drinks brand Campa, entering into the turf of US cola majors PepsiCo and Coca-Cola. It had priced competitively at ₹10 for a 200-ml bottle and ₹20 for a 500-ml bottle. Key Points
Hindustan TimesSoft drinks to soaps: Reliance unveils big price war plan
Earlier this month, Reliance relaunched the iconic soft drinks brand Campa, entering into the turf of US cola majors PepsiCo and Coca-Cola. It had priced competitively at Rs 10 for a 200-ml bottle and Rs 20 for a 500-ml bottle. Experts say Reliance does its homework very well and is quite successful at it. It has been strongly focused on areas of private consumption. Key Points
Economic TimesCompetition builds up fast for FMCG companies
To be sure, RIL is not alone in articulating its FMCG ambitions. Amul India's goal, under its new CEO, is to become a total foods company and not just a dairy major. Mondelez, meanwhile, has announced plans to invest ₹4,000 crore over next four years in the Indian market. Tata Consumer Products (TCPL) has been aggressively foraying into various categories of consumer staples. Large players such as ITC straddle across most consumer categories. Key Points
Economic TimesEris buys nine derma brands from Dr Reddy’s for Rs 275 crore
The transaction helps augment and expand the cosmetic dermatology business of Eris Lifesciences by way of expansion in the product offerings, it said. The transaction is likely to be completed before March 31, 2023. Key Points
FinancialexpressDr. Reddy’s divests certain non-core brands in dermatology in India; To focus on strengthening core
Under the agreement, Eris Lifesciences will be assigned the trademark of these brands by Dr. Reddy’s for a consideration of Rs. 275 cr. Key Points
Financialexpress
The influencer diaries: How influencer marketing has upended India Inc’s sales pitch and advertising spend
Influencer marketing is expected to grow by 25% in 2024, reaching ₹2,344 crore and rising to ₹3,375 crore by 2026, as per the report. The report was based on an EY survey of 2,053 respondents, including 86 brands, 556 creators, and 1,411 other industry professionals, said Amiya Swarup, partner, marketing advisory, EY India. Roughly 40% to 57% brands in categories like FMCG, ecommerce, and automobile are expected to increase spending on influencer marketing by 10% by 2026. Key Points
Economic TimesAmerica’s New Fashion Powerhouse Is Still Dwarfed by Europe’s Luxury Giants
Merger creates a U.S. conglomerate without the high-wattage labels and diversity that have fueled LVMH’s success Key Points
mintCheaper knockoffs take shine off big wearables brands
These products, which closely resemble the design of the Apple Watch and other premium smartwatches, are also pulling down the average selling price (ASP) in the industry to record lows, making it difficult for the entrenched brands to compete or premiumise , industry executives and experts said. The ASP in the wearable segment fell about 39% to $26.10 in 2023 from an already low $42.50 the previous year, se per IDC. Key Points
Economic TimesParle continues to be India's top FMCG brand at home, Britannia leads the ranking for out of home consumpt
Parle, a biscuit brand owned by Parle Products, remains India's top FMCG brand, as per Kantar Worldpanels annual ranking. Seven of the top ten brands belong to domestic companies, and Parle maintains the top spot with 7449 million CRP (consumer reach points). The ranking assesses brands based on how often they are purchased and how many households buy them. During FY22, Parle earned over $2 billion in annual revenue, becoming the first Indian packaged food company to cross this mark. Key Points
Economic TimesPremium liquor prices in Karnataka set to surge by 20%, becoming the costliest in India
Recent budget also proposed increasing the AED on beer from Rs 175 to Rs 185. As a result, the price of a 650ml bottle of beer will rise from Rs 170 to Rs 187. With this latest hike, Karnataka will become one of the most expensive states in terms of beer prices Key Points
Firstpost
Influencers next door emerge as next SRK, Salman for brand endorsements
Creators, spanning a spectrum from YouTubers and Instagram influencers to podcast hosts and Twitch streamers, have amassed colossal followings through the creation of content that resonates with audiences on a profoundly personal level. Their appeal lies in authenticity and relatability, qualities that set them apart from the scripted personas of traditional celebrities. This organic rise to fame positions creators as authentic and relatable figures, establishing a connection with their followers that goes beyond the superficial. Key Points
Economic TimesTech-first VCs line up for new-age consumer firms
Tech-first VC Nexus Venture Partners will lead a $5 million funding round in specialty coffee brand AbCoffee and it will also invest in lab-grown diamond maker Aukera, sources told ET. Accel, one of Flipkart's earliest investors, will close a $12 million round in fast fashion brand Newme. Why are tech-first VCs lining up for new-age brands with a horde of affluent young customers? Key Points
Economic Times