The spectacular rise in the use of these 3 products tells the story of the evolution of the Indian economy
- There has been an exponential rise in the consumption of essential goods.
- The growing sales of products like skin creams, shampoo and toothbrushes show the evolution of the
- India is also home to thriving businesses like Hindustan Unilever, Marico, Procter and Gamble, Colgate Palmolive among others.
AdvertisementBollywood star Ayushmann Khurrana’s recent viral video drives home the point that men need not shy away from embracing their softer side. This video was made in partnership with The Man Company. That’s a huge leap from a couple of decades ago when endorsements by India’s top actors and models told men they were supposed to be ‘rough and tough’.
Brands and admen do not change their message on a whim. Data shows that more Indian men are ready to spend on grooming themselves and that is the next frontier for the country’s fast-moving consumer goods (FMCG) majors.
And the fad has gone beyond the cities.Skincare creams, shampoos, and toothpaste have been bought by three times as many homes in India compared to 20 years ago.
Premium is the new normal in FMCG
“Some marketers believe that FMCG products / consumption is no more aspirational for the masses – this assertion is backed by significant improvement in penetration levels of most categories over the last two decades,” said the report by ICICI securities. The report added that the FMCG sector today has multiple drivers of growth – volume, premiumisation, new category creation etc.
In fact, even during the economic slowdown consumers were apparently not shying away from buying
In the new category business, men’s grooming has proved to be a booming one. This has also led to the growth of multiple brands like Beardo, Bombay Shaving Company, The Man Company among others.
According to a report by Deloitte the men’s grooming category is slated to grow at a CAGR of 45% to hit ₹35,000 crore by 2021.
How India’s businesses have grown
India is also home to thriving businesses like Hindustan Unilever, Marico, Procter and Gamble, Colgate Palmolive among others. Increased consumption over the years meant more businesses for these names while also driving them to bring in new sectors for growth.
To take a case in point, let’s look at Marico.
Marico’s India business accounts for 78% of its consolidated sales across products like Parachute, Parachute Advansed, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet, Mediker and Revive. It’s international wing has products like Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic, Isoplus, Code 10, Ingwe, X-Men and Thuan Phat.
Marico’s new verticals which includes men’s grooming is expected to grow at a 20% CAGR, according to its latest financial report.
Here’s a look at Marico’s profits over the past 20 years
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