Rural India contributes 36% to overall FMCG spends and has historically been growing 3-5% The overall FMCG market clocked a value growth of 7.3% in Q3 of 2019 compared with a 16.2% growth in Q3 of 2018. points faster than urban.
Key factors on rural marketing in Tamilnadu.
These are national brands like ITC, HLL, Britannia, Marico, gsk and Similar….
Then there are state specific players like Cavin care,cholayil group, Lion dates, Rajah, Anil, Aachi, Shakti masala,Manna, A2B, ELITE, NAGA among the long list.
Then there are area specific players like Durga in salem and erode region in Tamil Nadu who has a premium quality, premium pricing and demand is so much so that you need to book one week before by paying full cash advance.
Their price is atleast 15% higher than the national players like ITC and Unilever.
Then There are local players and bulk suppliers. What is otherwise called loose sales. Or unorganised retail.
Other key factors in rural FMCG retail.
“Power of local connect-The people in that area may know the owner or they may have a nostalgic connection with the brand.
Some Companies might not have changed their formula or taste for several years and is still Continuing for eg rkg and kalimark and maybe dashprakash or Dinshaw ice cream.
RKG is a prominent player in South Indian ghee market despite being a flavoured ghee and not cow ghee.
A classical case is that of bovinto from kalimark that have made even multi national like coco cola beverages to introduce their version of a product that is directly competing with bovinto from kalimark and interestingly coco cola named it “colour” highly debatable name for a soft drink as colour is not a good word as far as food is concerned, yet coco cola decided to go ahead with name colour because that is a local slang which consumers of bovinto use to ask for the product “oru colour kotungal” which means get a bottle of colour.
Besides the key factors mentioned above there are few key pointers are
Since there are so many brands that have come and gone so there is always doubts in the mind of shopkeepers if they would get service from such companies as2 always.
So they keep a track on how often the company visit the market and if they are convinced that this company visit every week then the shopkeepers confidence increase and along with this if companies come up with attractive scheme they will definitely take your product.
Service also includes taking back unsold stock replacing it with new and movable stock and a mentality of excellent after sales support is very important for regional players which most national and multinational companies does not offer.
Another important observation is that a whole sales distributor split the SKU of same company and send different sales guys on different days selling the same category of product. For example a biscuit distributor of Britannia biscuit send one sales guy for tiger biscuits and send another sales guy for milk bikis this is done so that the shopkeepers has different person to deal with and different dates for payments and not all is spend on the same agency.
Vehicle branding is another key marketing visibility to the company if the shopkeepers observe your vehicle with your products displayed is moving through that route more often then they will stop your vehicle and ask for your products so even if you run an empty vehicle with your brand and product logo displayed then you can create brand recall and product enquiry.
Celebrity’s Getting paid for attending a wedding was considered embarrassing unappealing cheap etc until srk came and said I am an entertainer my job is to entertain and I get paid for my job.
It’s not that Indian celebrities do not know how to be shameless, just that one renowned shameless guy has to do it for others to follow.
Keeping the above-mentioned trend by srk, tv awards became another series of events.
If srk has to be a part of your awards you need to pay money and an award 🏆 and so he can talk as well. Later these TV channels need to show snippets of SRK winning award and talking, few weeks prior to the actual event to win sponsors. Its business after all.
After srk started doing it then everyone from amitab batchan to arshad warsi followed the same.
Besides filmfare awards which has now become so cheap as a title goes something like this the pan parag filmfare awards powered by euro banian and dollar chaddis and co powered by idea mobile and surf excel extra power detergent powder.
PN. Dollar and euro are underwear brands in India.
Shahrukh Khan’s shameless endorsement from anything to everything has become a benchmark for other shameless from the likes of the big powerful and influential celebrity like Amitabh Bachchan to even more shameless Priyanka Chopra who’s there promoting manikchand gutka. I still have not figured out why do we need a female celebrity for a gutka ad. Needless to say even Anushka Sharma who appears more sensible goes on to do gutka ad.
A well known now defamed Anrindham Chowdary’s IIPM institute of management which was endorsed by Shahrukh Khan has now become cold turkey where students have filed a case not just against the institute but also the actor Shahrukh khan.
Well, Madhuri Dixit doing Maggi ad is understandable, we all as kids have had Maggi and it’s nothing wrong for her to endorse Maggi noodles, later she had to be in trouble when the food standard authority big india findings revealed that Maggi noodles in India had a high level of lead content in their noodles.
Memes of, do you want Maggi noodles leaded or unleaded (like in unleaded petrol) Was becoming huge hit.
India’s cricketers Sachin Tendulkar should have been more responsible to not endorse Pepsi cola knowing that they are not good for children. Even more suprising was the fact that for so many years of endorsing Pepsi, in the last years of his cricketing career he shifted his loyalty to coco cola. What if Shahrukh Khan change his loyalty from Hyundai to Maruti. If brand endorsers have shifted loyalty need we say more about consumers.
It’s here we should praise Gopichand who said “I will not endorse Pepsi as I know it’s not good for children”
And one celebrity who is yet to endorse any brand despite being the highest paid actor in South East Asia besides Jacky Chan is Rajnikanth.
Electric cars have halted several years of automotive research, the traditional engines are now called ic engines (internal combustion) engines.
Battery manufactures will be the next Infosys and Wipros of the world.
R&D in battery and related business will have great job potential.
The most famous job interview question, where would like to see your self 5 years from now? will have no relevance, as many of the jobs that exist today won’t exist 5 yrs from now. Ai (artificial intelligence) will take over.
The goolgle assist will make the job of call centre executives looks like a joke.
The medical transcription job will lose its relevance in no time, because the voice recognition software are so superior with the event of technology.
Travellers will find it easy to go to remotest places and with the help of google translate you can communicate in Russian without knowing a word in Russian. Your google lens can read Chinese and guide you to your exact location.
You can cycle in entire city of Berlin without asking anyone for location just use google maps and it all so easy.
Using Ai google can realise what the customer wants and recommend him greatest products or services. Google assist with help of what’s app integration will send messages about the customer of exactly as what he wants.
Many of the jobs that exist today may not be there 5 yrs from now.
Google maps is tracking your behaviour each time you enter a restaurant they ask for a review if you review and write the mutton biryani was excellent the ai in google maps have identified that you love mutton and whenever there is a option where you are searching for milk shakes in Chennai just besides the milk shakes it will offer you a review of the best mutton biryani in Chennai, how google help business.
Google knows you and your behaviour more than you know your self.
Google will also know where you travel what time you travel where you stop to eat, what, do you smoke(if you smoke) how much time you will take to eat a masala dosa vada and tea or normal pattern which route you take to reach where and why you stop at a particular place.
You reach the exact location, but you may also miss a competitive price in this deal. So understand there is no free lunch.
If you stop at a particular tea shop google will identify why you stop there based on study of patterns of others who follow the same route.
How can google identify if you smoke
They track your movements and they will collaborate with people who does the same movements and identify the behaviour patterns the age group etc and the answer will be 90% correct.
As per google they say, they can 99% certify if your husband or wife is cheating on you.
Indian Insurance firms will love this feature.Google can even identify if you are a rash driver or not, and send this data to insurance firms to over charge you next time you make your premium payment or in event of a accident the insurance companies now has a better reason why they should not pay you.
Tesla can raise your cars suspension sitting at their office using central computer.
Sound engineering for automobiles is the next big thing.
Imagine Ferrari without the roaring engine noise, imagine Harley Davison without the potato potato sound.
Sound engineers have a great future in automotive industry, how? Well, with the increasing focus on electric vehicles and its speed and its range, what’s missing is the sound, all electric cars have absolutely no sound, this is in a way is dangerous as most of pedestrians move when they hear the sound, so the next is creation of Ferrari sound, and creation of outdoor speakers system for cars and bikes.
So among the new features that one will check when they purchase new car will be, how powerful is the speakers and who designed it.
For example a r rahman designed bose external speakers 2000 watts.
Each car manufacturers will be designing their own version of engine sound, from now by hearing the artificially created sound of the engine we will say some one has come in a Lamborghini or Tesla.
Next time you walk into a cafe the Ai (artificial intelligence) camera will identify your face, and pass the message to the cashier at the counter and the billing kiosk would say, your name and last time you visited here, what dish you ordered and that’s not all, it will integrate with your bank and says what products you have ordered and which location and from where, also your taste preference and also know if you are diabetic and then send you message of diabetic clinic nearby.
Apple Watch already have a feature where it can measure you ECG and in case of a drop in ECG count it can alert the nearest ambulance service.
Travel and Tourism Industry
It will also identify, if you have a close relative living abroad and then if they have booked a flight they will show the ad that you were looking and send messages to you about the same laptop you were looking for and the price in dubai or USA.
Now if you book your ticket online, The moment a confirmed flight ticket reaches your inbox, all the related marketing activities will start to operate.
Banks with forex card, money exchange ads, logistics companies, Uber service
OTT and home entertainment with subscription channels
Earlier bigger your TV screen the more luxurious it will be, Samsung OLED 65 inch which was 3,50,000 is now 135000 with even better features and you will get a similar LED from TCL with 3 yr full warranty for Rs 65000 despite all this, the need for watching tv has reduced drastically.
The earlier ads where husband and wife fight for tv remote looks so stale. Now everyone can watch their favourite tv shows on their mobile. Why do you need a tv.
Another reason which I personally believe is that, the success of OTT is the ability to fast forward a movie, this is not possible when you are watching a tv subscription.
Most newspaper will go out of business in next 5 yrs, and for most us the news from news papers is what we have already read in their web portal.
The bombay times, page 3, was a key reason for many youngsters to read the times of india, well now we have much more from Instagram, why would one want to read it in print. Plus you need to open the paper to read.
In URBAN warfare.
Drones, Ai (artificial intelligence), laser light guided bullet with 99.9% accuracy is the next scale weaponry of mass destruction.
Drone traffic control room for managing food delivery, courier delivery and medicine delivery there will be prescribed routes for using drones else it can create drone crash like mid air collision or similar.
Remember the time when we use to look up to those who hold a canon 6d etc, now you can get almost the same result as Phone cameras with Ai (artificial intelligence) can make any one a professional photographer with now additional filters, and what ever you can imagine.
You spend some time on Instagram you get to feel everyone is so happy, yet the depression cases in women have increase 10 folds, it’s contrary to the happiness quotient.
The Negative Impact.
New age psychological disorders among children and adults is next big social issues, The next de addiction centres will not be for alcohol and drugs but for mobile phone addiction, porn addiction, game addiction, concentration lapse disorder, attention deficit hyperactive disorder and what not. Now that
Deepika padukone, has openly declared that she had suffered depression many young ladies have started consulting psychiatrist for being depressed, unknowingly depression and being depressed is totally different subject.
Many are already having such disorders, but not yet identified.
My wife feels I am one, of them, unidentified psycho cases walking freely.
Next generation ideas will be. “Get lost” Tourism.
Take a small piece of land in Ooty or similar place,With cows goats rabbits dogs horses and all domestic animals to spend quality times with them. Read only books, no tv, totally no internet. One psychiatric counsellor. personalised yoga teacher.Eat raw cooked food. This will be the tourism of the future.
International Business: Why didn’t American companies choose India instead of China for manufacturing products?
– Haosen Cai, Engineer
I’ve come across similar questions from time to time on this very topic and I don’t recall anyone ever pointing out the true reason.
The reason as to why India can’t outperform China in manufacturing is NOT because of infrastructure, it’s NOT because of skilled labors, it’s NOT because of corruption, and it’s also NOT because of “superiority of the Chinese mentality”.
I’d like to answer this question with this noun
Now repeat after me.
This is the single most powerful noun that’s preventing India from being a manufacturing hub – because doing business in India is so god damn unpredictable, therefore it is impossible to calculate your return on investment when dealing with India.
Bad infrastructure? No problem, that can be factored into shipping cost & delivery time
Lack of experienced labors? No problem, that’ll factor into capital/startup cost
Corruption? No problem, tell me who I need to pay and how much, that’ll become part of operating cost
Lots of paper work? No problem, longer startup time means lower return on investment, but that again, can be calculated, and can be made up with higher profit margin.
You know what the problem with India is?
NOTHING CAN BE CALCULATED
When someone says “yes”, you have no idea whether he/she actually meant yes or no.
When a worker say that “I’ll be there in 5 minutes”, you have no idea whether he’s one of those workers who keeps his word, or he’s one of those workers who’ll just show up 4 hours later
When an official approaches you and ask for “expedition fee”, you have no idea how much he’s asking, and how much faster he can expedite, and how many more like him are coming
When you are presented with a pile of paperwork, you have no idea whether this is the last pile, or whether there are 20 more piles that’s coming after, and whether you were even given the correct paper works to fill out.
Heck, even if you have someone coming in to help, you have no idea whether he’ll hit a cow on the way here and then forced to wait for another 8 hours for a shaman to show up and complete the ritual.
All that plus the occasional “I refuse to work with people from that caste” plus union strike and power outages makes doing business in India extremely unpredictable.
If you are a business owner, would you buy from someone who sells you the same item with $3, knowing that the goods will likely be delivered on time and to specification, or are you going to buy from someone who sells you for $2, but you have no idea when, or even if you’ll get that item?
Most people would buy it for $3, then just markup the profit.
Business is all about predictability, trying to make money without ability to predict is called gamble, and business owner don’t like to gamble when they could avoid it.
So to wrap this up.
Unpredictability is what’s killing manufacturing in India. Not infrastructure, not mentality, not corruption, not skilled labor.
It’s UNPREDICTABILITY, in capitalized bold letters.
Step By Step Process In case you’re highly dependent on online payments but don’t wish to download an additional app for it on your smartphone try out WhatsApp
What Is WhatsApp Pay?
Basically, WhatsApp Payments is based on National Payments Corporation of India’s (NCPI) Unified Payments Interface (UPI).
First of all, WhatsApp Payments is dedicated only for peer to peer payments compared to Paytm, which also has a wallet for people to store money and Google Pay that lets users make payments of bills, buy gold and more.
For implementing these services, WhatsApp Payments has partnered with some major banks in India like ICICI Bank, HDFC Bank, Axis Bank and State Bank of India. How To Setup WhatsApp Payments?
Let’s go through the steps to set up the WhatsApp Payments and link it with your bank account.
1. The first step, open WhatsApp on your smartphone and tap on the three dots located on the top right corner.
2. Now tap on the ‘Payments’ option and then select the ‘Add payment method’ option.
3. Further, this will show a list of supported devices, now select the bank where you have an account. (The account should be linked to mobile number)
4. Afterward, the app will then ask to send a verification message from your phone.
5. Now tap the ‘Verify via SMS’ button and after verifying, it will show all your accounts in the bank that are linked to your number.
6. Next choose the one you want to set up for the app to use, tap done and your process of setting up your account is done.
How To Transfer Money Using WhatsApp Payments?
There are two methods for doing this, let’s go through them one by one.
Method 1 –
1. First Of all, select the person’s chat you want to send money.
2. Now select the attachments option and then tap on ‘Payment’ option.
3. If you have already set up WhatsApp Payments then you will see a screen where you can send and request money.
4. Now, enter the amount and add a note if you want and then hit next.
5. Next, it will take you to a screen where it will ask you to enter your UPI pin.
6. In case you do not have one it will guide you through creating one.
7. Now, enter your UPI pin and you are done.
8. In case, you are requesting money, tap on request and wait for the person to accept your request.
Method 2 –
1. Firstly, tap on the three dots on the main page of WhatsApp and open the payment option.
2. Now tap on the QR code showing next to your name to show your QR code using which people can send you money.
3. Now select the new payment option located on the bottom right of the display.
4. Next, select a contact or the ‘Send to a UPI ID or Scan QR code option and the rest of the process remains the same as above.
A couple of WhatsApp groups I am a member of should be renamed China problem group. 90% of discussions is on how China hijacked the world economy, how they do not deserve to do so, how all politicians have let us down, how they are stealing all intellectual property and how we are doomed if we do not stop downloading tiktok.
All true. And no, this article is not about disagreeing with this narrative. This article is not about the fact that an average Chinese student in US beats the shit out of all other students (including Indians) in terms of hours they works and their only disadvantage is that their English is not as good, but they’re getting there. No this article is not about the fact that the people of China worked their butts off while Italians holidayed and French wanted a 4 day week. No this article is not about the fact that you cannot hire a decent machinist or a metal forger in India because all of them are sitting in call centers answering questions from technically challenged Americans.
Of course, I agree and support the view that China and it’s people do not deserve the place they have reached (I don’t want to be trolled). They are thieves, they do not take 4-week holidays. They should be punished.
So what is this article about? This is about an industry where China has been beaten by India. It has been shown it’s not the government, neither the people, it’s really the companies that compete. And as far as India is concerned the people responsible for the demise of manufacturing are these companies.
Year 1983, I pass out of Engineering college in Mumbai considered to be one of the best. Irrespective of the branch—Mechanical, Electrical, Civil, Production, Textile, 80% become coders for the software industry.
Year 2000, I am at Bajaj Auto as HR head (after working for 15 years as a technical person), and am off to conduct campus interviews, to hire 100 Engineers who will build the 100-cc engine of a motorcycle. I am day 5 in VJTI and all other RECs. I end up hiring 10 people from 15 colleges. In every college I am told by the Training and Placement officer (TPO) that tech companies get preference. I say I don’t understand, is building an Engine not technology? No that’s manufacturing.
Writing Cobol code for a bank in New York by a TCS employee is technology. May be the Chinese forced us to do this.
Next year I write to all colleges. I want to be day 0 in your campus. I will offer three times the salary of the best “so called technology company”, but only if I am day 0.
Hiring 100 Engineers at three times salary was no problem for me as compared to TCS, which had to hire 2000 “Bodies”. They could never match that salary.
And that’s how Bajaj Auto built its R&D. Batch by Batch. Making designing and manufacturing of motorcycles sexy and paying for it. The selection ratio was 1:15.
Most of the IITS, RECS, and VJTIS had toppers who were absolutely useless. They could not draw a Carnot cycle, could not tell the difference between a diesel and petrol engine. Give them an elevation and plan they could not draw the side view. Most of them were focusing on writing code. But we found gems, we found guys who were passionate and knowledgeable but could not express in English. I started conducting interviews in Hindi, Marathi, Telugu, Tamil and so on.
There was another company doing the same TVS. South based, they also built a great R&D.
Year 2005, Chinese motorcycles attacked India with products which were 30% cheaper. Many dealers started selling them. Press predicted demise of Indian manufacturers. Within 6 months they went broke. Their quality was no match to Indian motorcycles. They never came back again.
Bajaj then stared attacking them in Africa. Africans had two choices; buy expensive Japanese motorcycles or cheap Chinese. Chinese motorcycles used to come in a box. You buy the box and take it to a mechanic and he will assemble it. In Nigeria motorcycles are used as taxis. So no one is going to pay you a dime more. In such a market Bajaj launched it’s fully assembled motorcycle. Priced more than Chinese less than Japanese. And worked hard. Today Bajaj is a market leader. TVS is number two. Chinese have been driven out. You can see videos of the love that the Okada (taxi drivers) have for Bajaj Bikes. Country by Country in Africa.
In South America Indians captured the market driving the Chinese out.
In 2018 India became the largest manufacturer of two wheelers in the world (twice the size of China). Indian companies have started buying out European Brands. The market leader of motorcycles in Europe is not BMW, its KTM owned by Bajaj. China is slipping fast not only in the manufacturing of Bikes also in the manufacturing of components. Indian suppliers are beating them hands down. Between three Indian Companies Hero, Bajaj and TVS India today dominates the world market. Honda a Japanese company has shifted most of it’s R&D to India.
Why was this not done in TVs, in Computers, in Mobile phones, in Pharmaceuticals and other industries? The same country, the same labor laws, the same infrastructure but not the same entrepreneurs. Indian businessmen are characterized by a myopic vison—it’s both short term as well as geographically limited. Of course, the government also does not help.
So, who is responsible for the Chinese dominance—the government, the people or the Corporates?
I think its all the three. When even ITI trained turners and fitters refuse to work in a shop floor, when a Stock Broker is paid more than an Engineer, when typing code is mistaken for technology, when governments refuse to amend antique labor and land laws when corporates think local and not global and finally when you, yes you, will not send your son to work on the shop floor, each one of these factors is as responsible for the Chinese dominance as much as their “Ethical Corruption”. We have been looted because we left our doors and windows open.
No this article is not supporting the Chinese. How dare they work so hard? And how dare they obey a communist government? We should stop buying all their goods and we will make every thing in our country. But we will work nine to five with a three-day weekend. We will overcome. One Day!!
Until the event of covid 19 and outburst of Corona virus pandemic, there are several businesses that’s have lost and had to shut operations, however there are other new businesses, that has newly evolving even better.
The rise of eCommerce transaction specific to purchase of essential commodities have seen a double digit growth which will increase further.
Everyday you hear news of big FMCG giants entering into e-commerce space as well. The latest among them being Hindustan Unilever limited India.
Another interesting development of a new service from food delivery platforms like swiggy are what they term as genie, I personally found it incredibly helpful, where a swiggy delivery boy would come to your home pick up what you have to deliver and deliver it to the person you want to give it.
Recently owing to me being in qurantinne I could not get out of my home and I received a cheque which I had to deposit to my bank where I used swiggy genie service where a delivery boy came and picked up my cheque delivered to my bank and the bank did the rest.
So what’s the new outcome of such services
Swiggy can become a logistics player.
Courier services may need lesser branch offices. (job loss)
Home based home cooked meals will gain traction as house wife will see a potential to earn money being at home. From home meals to baked cake to lasagna. Home made, home cooked food will certainly have takers added to digital payments can pose a threat to restaurant business.
Most food delivery boys would be using a two wheeler where they may be unable to carry the heavy load of provisions that a customer can order therefore swiggy will now start negotiating with auto rickshaw drivers for delivery. (New business development)
Similar to cloud kitchen, there shall evolve cloud supermarket that’s offer incredible value for money proposition.
Remember Ola cabs has already working on such a model and pilot testing is being operational in Bangalore.
At this juncture many are losing jobs and once a very famous job interview question, where would you like to see yourself 5 years from now, will have absolutely no significance, as many jobs that exist today may be extinct by then.
And if you thought Tesla is competing with Porsche’s Taycan, Audi e-tron, Mercedes EQC, well then remember SONY Corporation Japan, with their production ready Vision S, may be the biggest competitor to Tesla.