FMCG Companies must take advantage of online shopping trends
According to a joint report by Google and Bain & Company, FMCG companies are going to make more sales online in India by 2020. This is because internet use will reach a bigger audience, including more women and people from rural areas. Many FMCG companies are already spending revenues on internet advertising and if they wish to capture more consumers in the future then they will need to plan their digital presence.
India is likely to have over 650 million internet users by 2020 and since they are going to spend a lot of time online it is likely that they will also buy products online as their disposal incomes increase. The present survey carried out in 13 Indian cities shows that male grooming products, infant care and beauty products are already the biggest online sellers. If FMCG companies fail to make use of the digital potential then they are likely to miss the growth trajectory.
Imported beer is back in India
Hoegaarden’s India partner, Anheuser-Busch InBev NV, has agreed to comply with the FSSAI regulation to list all ingredients in beverages on the printed label. Consumers can now see larger quantities of this imported beer, from Belgian, in India pubs and bars. InBev NV, bottles Budweiser in India and along with Hoegaarden also imports beers like Stella Artois and Leffe in to India. Hoegaarden has seen a high demand after its return to the bars and pubs.
Urban, high income groups do not mind shelling out Rs.210 for the imported Hoegaarden. However, there is no indication when other imported brands will be back. Local breweries in India had tried to make up for the gap in imported beers but only the beer being brewed by United Breweries Ltd and SABMiller India were showing sales. After the dry run Indian companies are more willing to adhere to the new labelling requirements but would like the regulations to simplify the labels.
QRS market on the upsurge in India
Over the next three years the India’s organised quick service restaurant (QSR) market will be a huge 117 billion says CRISIL research. The already established brands are likely to expand further by moving into Tier I and Tier II cites. Among these Domino’s Pizza, Subway, McDonald’s, KFC and Pizza Hut are likely to increase their strength by more than 40% by 2017 There are several reasons for their growth and the foremost is that their brand value makes them strong contenders for the QRS market. Higher pricing, bigger stores that accommodate more customers, better transaction size and the fact that they operate on the franchise model adds to reduce their capital burden.
New players like Dunkin Donuts, Krispy Kreme, Burger King, Wendy’s and Johnny Rockets are all getting ready to capture this market which is growing at a fast rate. On the other hand Indian takers like Jumbo King, Goli Vadapav, Faaso’s, Kaati Zone, and Yo! China and Smokin’ Joes are likely to struggle as they have less brand value in the QRS format and need to gear up services if they are to compete with foreign brands.
India Pulses launched in Forwards Contracts by NCDEX
NCDEX was launched in September 2014 and offers exchange traded forwards contracts in the country. After the successful completion of 136 trades the leading commodity exchange has now launched Urad, Tur, Yellow Peas, Yellow Soya Bean Meal (Domestic), Pepper, RBD Palmolein and Bajra in forward contracts. The buyer and the seller will be permitted to trade these commodities in any quality and quantity at a price that is mutually agreeable. This will lead to more farmers and traders having
- access to a national market
- reduce overhead costs for participants
- minimise counter-party default risks
As India is the largest producer, consumer and importer of pulses in the world this will ensure fewer price risks for the trading community as there is price transparency. India Pulses and Grains Association and the NCDEX will work together to educate traders and farmers about the advantages of forwards contracts as these help to build confidence of the participants.
Indian Tea Association to attract youth to tea drinking
The Indian Tea Association is all set to take tea to the coffee drinking contemporary young Indian as the production of tea increases. Tea drinking is the lowest in India though it the world’s largest producer of teas in the world. As compared to tea drinking countries like Ireland where per capita tea consumption is 2.3 kg per annum in India it is a mere 730g per annum.
The association will try to increase tea consumption by attracting students with tea mocktails and other innovative tea preparations at college festivals in Delhi NCR, Chandigarh and Kolkata. Termed as B2Y (business to youth) the association is all set to launch its campaign in Hindu College, Sri Venkateswara College and Shri Ram College of Commerce. They will also promote tea via Facebook and Twitter and in the next phase they aim to target the IITs and IIMs where they will organise tea carnivals.
Minimum import price for cardamom sought
As a means to sustain the domestic cardamom market and to prevent the large scale import of inferior quality cardamom the Spice Board has asked the Commerce Ministry to impose minimum import price for cardamom. The Board has asked the Ministry to ensure that the quality of both large and small imported cardamom is according to the quality as stipulated in the FSSA Act, 2006.
The Ministry has not only fixed the importing price but the consignment of imported cardamom will be released only after the samples sent to the Spice Board get an analysis reports. The Commerce Ministry has issued a notification for permitting import of both small and large cardamom at below the CIF price. Cardamoms will now be imported only if CIF value is Rs. 500 per kg. Import duty of 70% on CIF duty will also have to be paid.
Coca-Cola all set to launch its tea and juice drink in India
Come summer and India is likely to get a taste of Coca-Cola’s new tea and juice combination drink Fuze Tea. This will be Coca Cola’s second tea venture after Nestles iced tea launch that dissolved earlier. Initially Fuze Tea will be bottled with India partner Hindustan Coca-Cola Beverages and later franchise bottlers will help to increase scale once the ready to drink tea is successfully launched.
This is also an attempt by the company to target the increasing health conscious consumer. Besides Fuze Tea they will also increase their portfolio of functional and low-sugar beverages and are looking to reduce their core fizzy drinks as consumer tastes change. Fuze Tea was launched in 2012 and is available in 30 variations like lemon, apple, peach and mango. Global sales of ready-to-drink teas have more than doubled over the last 10 years and Fuze Tea also has a presence in 40 markets worldwide.